Smurfit WestRock plc

Strong Q1 Performance: Smurfit Westrock reported net sales of over $7.6 billion and adjusted EBITDA of $1.252 billion, reflecting a double-digit growth compared to the previous year. The adjusted EBITDA margin improved to 16.4%, driven by a focus on cost management and operational efficiencies, despite current challenges in the market.

Forecast and Guidance: The company anticipates second-quarter adjusted EBITDA to be approximately $1.2 billion and full-year adjusted EBITDA between $5 billion and $5.2 billion. The guidance assumes flat or slightly improved box volumes in North America and continued pricing stability in Europe, but management remains cautious and is not banking on a significant demand recovery.

Cost Savings and Capacity Rationalization: Recent announcements include the closure of over 500,000 tons of paper capacity in the U.S., Mexico, and the Netherlands, expected to yield about $50 to $60 million in EBITDA improvements and $100 million in avoided CapEx over five years. These closures aim to strengthen operations and enhance overall efficiency.