Smurfit Westrock has reported its first quarter 2026 results, with revenue holding steady but profitability under pressure as costs and external factors weighed on performance.

The global packaging group posted net sales of $7.7 billion for the three months to March 31, 2026, slightly up from $7.6 billion a year earlier. Net income fell sharply to $63 million, down from $382 million, with margins dropping to 0.8%.

Adjusted EBITDA also declined to $1.08 billion, compared with $1.25 billion in the same period last year.

The company said adverse weather in North America had a $65 million impact on earnings during the quarter.

At the same time, pricing trends began to shift. Containerboard prices increased by $20 per ton during the quarter, with a further $30 per ton increase implemented in April.

Demand improved progressively across paper grades, while corrugated box volumes remained in line with expectations. The company also added more than 600 new corrugated customers during the quarter, reflecting continued expansion in its packaging customer base.

In Europe, the Middle East, Africa and Asia-Pacific, the business delivered continued growth and outperformed peers, supported by improving demand and pricing. In Latin America, margins remained strong at around 20%, with the company expanding capacity through a new corrugated plant in Ecuador.

Smurfit Westrock also confirmed it has entered consultations at one UK mill and four converting facilities in the UK and the Netherlands as part of its ongoing asset optimisation programme.

The company expects volumes to grow in the second half of the year as demand conditions improve, and reaffirmed its full-year Adjusted EBITDA outlook of between $5.0 billion and $5.3 billion.

Why it matters

For supermarket and FMCG supply chains, the update points to a turning point in Ireland packaging industry and wider global packaging markets.

Rising containerboard prices suggest cost pressure is building again after a period of stability. That can feed directly into packaging costs for private label and branded products.

At the same time, improving demand and new customer growth indicate that packaging volumes are stabilising, which is often an early signal of broader retail recovery.

Capacity adjustments in the UK and Europe also highlight ongoing restructuring across the packaging sector, as suppliers rebalance operations to match demand and protect margins.

Editors’ Note: Based on Smurfit Westrock Q1 2026 earnings release.