Smurfit Westrock Reports $7.656 Billion in Net Sales, Driven by WestRock Acquisition

Smurfit Westrock plc reported significant financial growth in its latest quarterly results, driven primarily by the acquisition of WestRock Company. For the three months ending March 31, 2025, the company recorded net sales of $7.656 billion, a substantial increase from $2.930 billion in the same period the previous year. This increase of $4.726 billion was largely attributed to the WestRock acquisition, which contributed approximately $4.736 billion to sales. However, excluding this impact, net sales saw a slight decline of $10 million, influenced by a negative foreign currency impact and reduced volumes.

The company's net income attributable to common shareholders also rose, reaching $384 million compared to $191 million in the prior year, marking an increase of $193 million. This growth was primarily due to the WestRock acquisition, although it was partially offset by higher interest expenses associated with the new debt taken on during the merger. Operating profit for the quarter was reported at $553 million, up from $307 million a year earlier, reflecting the overall positive impact of the merger on profitability.

In terms of operational metrics, Smurfit Westrock's total assets increased to $44.649 billion as of March 31, 2025, up from $43.759 billion at the end of 2024. The company’s employee headcount and customer base have also expanded as a result of the merger, although specific figures were not disclosed in the report. The company invested $477 million in capital expenditures during the quarter, indicating a commitment to growth and infrastructure development.

Looking ahead, Smurfit Westrock announced plans to permanently close its coated recycled board mill in St. Paul, Minnesota, and discontinue production at its containerboard mill in Forney, Texas, which will reduce its capacity by over 500,000 tons annually. The company expects to incur approximately $287 million in pre-tax charges related to these closures, including $188 million in non-cash asset impairment charges. Despite these closures, Smurfit Westrock anticipates that the elimination of corresponding fixed costs will enhance overall profitability in the long term.

The company’s outlook remains cautiously optimistic, with management emphasizing the importance of integrating the operations of Smurfit Kappa and WestRock to achieve anticipated synergies. However, they also acknowledged potential challenges, including macroeconomic factors and the need to navigate the complexities of merging two large organizations. The effective tax rate for the quarter was notably low at 2.1%, significantly impacted by the resolution of unrecognized tax benefits, contrasting with a rate of 28.5% in the previous year.