Smurfit Westrock (NYSE:SW) demonstrated the industrial muscle of its recent $11 billion merger, reporting fourth-quarter results that hit internal operational targets despite a softening global demand for cardboard boxes.
The Dublin-based leader, formed by the 2024 combination of Smurfit Kappa and WestRock, generated $7.58 billion in net sales for the quarter, largely flat year-over-year, as it deliberately pulled back on volume to protect margins.
The company’s "Value over Volume" strategy was on full display in North America, where core profit fell 8% as management shuttered 600,000 tons of high-cost capacity.
This disciplined restructuring, which included a global headcount reduction of over 3,000 employees in 2025, helped the company exceed its committed synergy target of $400 million ahead of schedule.
For the full year 2025, Smurfit Westrock posted net sales of $31.18 billion and an adjusted EBITDA of $4.94 billion.
The company’s cash engine remained robust, providing $3.39 billion in operating cash flow for the year.
This liquidity supported a 5% increase in the quarterly dividend to $0.4523 per share, signaling management’s commitment to a progressive payout policy.
Looking forward, the company unveiled its "Medium-Term Plan," targeting an adjusted EBITDA of approximately $7 billion by 2030.