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Smurfit Westrock Q3 Sales Rise to $8.16 Billion as Cost Inflation Pressures Margins
Smurfit Westrock reported higher third-quarter 2026 sales but lower adjusted EBITDA as freight, energy and other operating costs weighed on profitability. The company expects full-year adjusted EBITDA of approximately $4.7 billion, with the benefits of recent price increases extending into 2027.
By Paul Ploumis
Published: November 3, 2026
Reporting period: Third Quarter 2026
Key Points
- Net sales: $8.161 billion, compared with $8.003 billion in Q3 2025.
- Adjusted EBITDA: $1.205 billion, down from $1.302 billion a year earlier.
- Profitability: Net income totaled $219 million; adjusted EBITDA margin narrowed to 14.8%.
- North America: Adjusted EBITDA reached $760 million, with a 15.6% margin.
- 2026 outlook: Full-year adjusted EBITDA forecast at approximately $4.7 billion.
MONTREAL (Scrap Monster): Smurfit Westrock plc reported third-quarter 2026 net sales of $8.161 billion, up from $8.003 billion a year earlier, although higher operating costs and weaker-than-expected converting volumes pressured profitability.
Adjusted EBITDA declined to $1.205 billion from $1.302 billion in Q3 2025, with the adjusted EBITDA margin falling to 14.8% from 16.3%.
Net income totaled $219 million, representing a 2.7% margin. Cash generated from operating activities reached $874 million, while the company declared a quarterly dividend of $0.4523 per ordinary share.
ScrapMonster Edge: Strong Containerboard Demand Meets Higher Operating Costs
Smurfit Westrock's results reveal a distinction between product demand and earnings performance. North America remained sold out across all containerboard grades, yet company-wide adjusted EBITDA fell by $97 million year over year as operating costs increased.
Management expects approximately $700 million in additional freight and energy costs during 2026. Packaging and paper price increases are being implemented to offset those pressures, but their full benefits are not expected until 2027.
Industry takeaway: Strong containerboard order books do not necessarily translate into stronger margins when input costs rise faster than selling-price adjustments take effect. For packaging producers and recovered-paper suppliers, the timing of cost recovery remains an important factor to monitor.
North America Remains Largest Regional Earnings Contributor
Smurfit Westrock's North American operations generated $760 million in adjusted EBITDA, with a margin of 15.6%.
The company reported continued demand for containerboard, with all grades sold out, alongside improvements in its corrugated and consumer packaging converting businesses.
EMEA and APAC Face Energy Cost Pressures
The Europe, Middle East, Africa and Asia-Pacific operations delivered $379 million in adjusted EBITDA, representing a 13.4% margin.
The region continued to face significant energy cost inflation. Smurfit Westrock has implemented containerboard price increases intended to recover higher costs, although the benefits are being realized with a time lag.
Latin America contributed $126 million in adjusted EBITDA, with a comparatively higher margin of 21.4%.
Full-Year Adjusted EBITDA Forecast at $4.7 Billion
Smurfit Westrock expects full-year 2026 adjusted EBITDA of approximately $4.7 billion, reflecting continued pressure from freight, energy and other operating costs.
The company has introduced price increases across most paper and packaging grades to offset those expenses. Management expects the full financial benefits of these measures to extend into 2027.
Chile Acquisition to Expand Latin American Packaging Operations
Smurfit Westrock also announced an agreement to acquire CMPC's containerboard and corrugated packaging business in Chile.
The transaction is expected to strengthen the company's regional manufacturing and recycling network, supporting its broader Latin American packaging operations.
Source: Smurfit Westrock plc, Third Quarter 2026 Financial Results, released October 28, 2026. Adjusted EBITDA is a non-GAAP financial measure.
