Revenue growth has decelerated to 0.7% in 2026Q1, while gross margins have compressed significantly from 24.2% in 2024Q1 to 16.4% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 31.23B | 31.18B | 20.38B | 10.95B | 12.62B | 10.48B | 8.53B | 9.05B | 10.23B | 10.27B | 8.58B | 8.87B | 9.83B | 10.99B | 9.7B | 9.54B | 8.88B | 8.68B | 9.83B | 10.6B | 9.2B | 4.64B | 3.98B |
| Revenue Growth % | 27% | 53.01% | 86.02% | -13.18% | 20.33% | 22.91% | -5.73% | -11.58% | -0.37% | 19.71% | -3.21% | -9.8% | -10.54% | 13.27% | 1.73% | 7.38% | 2.33% | -11.73% | -7.27% | 15.26% | 98.26% | 16.66% | - |
| Cost of Goods Sold | 25.5B | 25.14B | 16.33B | 8.19B | 9.56B | 8.13B | 5.66B | 6.04B | 6.85B | 7.21B | 5.98B | 6.21B | 6.93B | 7.81B | 6.93B | 6.88B | 6.42B | 6.31B | 7.37B | 7.64B | 6.65B | 3.37B | 2.87B |
| COGS % of Revenue | - | 80.62% | 80.13% | 74.75% | 75.78% | 77.56% | 66.31% | 66.79% | 66.95% | 70.17% | 69.74% | 70.05% | 70.52% | 71.11% | 71.44% | 72.11% | 72.26% | 72.69% | 74.98% | 72.1% | 72.33% | 72.62% | 72.11% |
| Gross Profit | 5.73B | 6.04B | 4.05B | 2.77B | 3.06B | 2.35B | 2.87B | 3B | 3.38B | 3.06B | 2.6B | 2.66B | 2.9B | 3.17B | 2.77B | 2.66B | 2.46B | 2.37B | 2.46B | 2.96B | 2.55B | 1.27B | 1.11B |
| Gross Margin % | 18.36% | 19.38% | 19.87% | 25.25% | 24.22% | 22.44% | 33.69% | 33.21% | 33.05% | 29.83% | 30.26% | 29.95% | 29.48% | 28.89% | 28.56% | 27.89% | 27.74% | 27.31% | 25.02% | 27.9% | 27.67% | 27.38% | 27.89% |
| Gross Profit Growth % | - | 49.23% | 46.38% | -9.47% | 29.87% | -18.13% | -4.36% | -11.16% | 10.39% | 18% | -2.22% | -8.36% | -8.72% | 14.58% | 4.18% | 7.98% | 3.94% | -3.66% | -16.83% | 16.18% | 100.4% | 14.51% | - |
| Operating Expenses | 3.81B | 3.82B | 3.08B | 1.52B | 1.6B | 1.25B | 1.98B | 2.12B | 2.19B | 2.11B | 1.74B | 1.88B | 2.09B | 2.29B | 1.94B | 1.89B | 1.92B | 1.99B | 2.07B | 2.14B | 2.24B | 1B | 844.61M |
| OpEx % of Revenue | - | 12.25% | 15.1% | 13.91% | 12.69% | 11.91% | 23.25% | 23.44% | 21.44% | 20.52% | 20.27% | 21.19% | 21.3% | 20.81% | 19.97% | 19.87% | 21.61% | 22.9% | 21.03% | 20.17% | 24.37% | 21.62% | 21.24% |
| Selling, General & Admin | 3.81B | 3.82B | 2.72B | 1.5B | 1.45B | 1.27B | 1.96B | 1.96B | 2.12B | 2.09B | 1.72B | 1.81B | 2.03B | 2.25B | 2.01B | 1.88B | 726.16M | 737.86M | 804.63M | 858.76M | 19.4M | 998.34M | 840.11M |
| SG&A % of Revenue | - | 12.25% | 13.35% | 13.67% | 11.48% | 12.1% | 23.02% | 21.66% | 20.7% | 20.38% | 20.09% | 20.43% | 20.69% | 20.5% | 20.71% | 19.7% | 8.18% | 8.5% | 8.18% | 8.1% | 0.21% | 21.52% | 21.12% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 8M | 8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.89M | 3.99M | 2.87M | 4.18M | 3.87M | 2.85M | 4.5M | 4.5M |
| R&D % of Revenue | - | - | - | - | - | - | 0.09% | 0.09% | - | - | - | - | - | - | - | 0.04% | 0.04% | 0.03% | 0.04% | 0.04% | 0.03% | 0.1% | 0.11% |
| Other Operating Expenses | 0 | 0 | 358.13M | 26.27M | 152.23M | -20.21M | 11M | 153M | 75.5M | 14.4M | 15.78M | 66.69M | 60.8M | 34.52M | -71.42M | 12.96M | 1.19B | 1.25B | 1.26B | 1.28B | 2.22B | 0 | 0 |
| Operating Income | 1.87B | 2.22B | 972.06M | 1.24B | 1.46B | 1.1B | 891M | 884M | 1.19B | 956.16M | 857.14M | 777.34M | 803.78M | 887.9M | 833.18M | 764.69M | 543.96M | 382.54M | 392.57M | 819.42M | 303.87M | 267.39M | 264.7M |
| Operating Margin % | 6% | 7.13% | 4.77% | 11.35% | 11.53% | 10.53% | 10.45% | 9.77% | 11.61% | 9.31% | 9.99% | 8.77% | 8.18% | 8.08% | 8.59% | 8.02% | 6.13% | 4.41% | 3.99% | 7.73% | 3.3% | 5.76% | 6.66% |
| Operating Income Growth % | - | 128.79% | -21.78% | -14.59% | 31.75% | 23.95% | 0.79% | -25.62% | 24.3% | 11.55% | 10.27% | -3.29% | -9.47% | 6.57% | 8.96% | 40.58% | 42.19% | -2.55% | -52.09% | 169.66% | 13.64% | 1.02% | - |
| EBITDA | 3.82B | 4.77B | 2.39B | 1.77B | 1.98B | 1.59B | 1.35B | 1.32B | 1.67B | 1.44B | 1.27B | 1.19B | 1.25B | 1.4B | 1.3B | 1.25B | 1.06B | 958.51M | 935.49M | 1.2B | 697.04M | 530.13M | 512.31M |
| EBITDA Margin % | 12.23% | 15.31% | 11.71% | 16.14% | 15.71% | 15.18% | 15.8% | 14.64% | 16.3% | 13.98% | 14.85% | 13.39% | 12.71% | 12.76% | 13.4% | 13.13% | 11.95% | 11.05% | 9.52% | 11.29% | 7.58% | 11.43% | 12.88% |
| EBITDA Growth % | 23.28% | 100.15% | 34.9% | -10.78% | 24.55% | 18.04% | 1.74% | -20.55% | 16.14% | 12.66% | 7.36% | -4.93% | -10.9% | 7.81% | 3.83% | 17.97% | 10.73% | 2.46% | -21.84% | 71.7% | 31.48% | 3.48% | - |
| D&A (Non-Cash Add-back) | 1.95B | 2.55B | 1.41B | 525.36M | 526.72M | 486.74M | 457M | 441M | 479.3M | 479.88M | 417.53M | 409.99M | 445.06M | 513.68M | 466.84M | 487.33M | 517.36M | 575.96M | 542.92M | 377.41M | 393.17M | 262.73M | 247.61M |
| EBIT | 1.62B | 2.22B | 1.33B | 1.27B | 1.61B | 1.08B | 910M | 1.04B | -253.95M | 927.37M | 883.43M | 828.72M | 678.53M | 741.53M | 804.08M | 868.38M | 554.6M | 336.7M | 416.24M | 743.73M | 376.92M | 109.15M | 242.29M |
| Net Interest Income | -562M | -729M | -384.35M | -126.31M | -137.71M | -123.01M | -116.32M | -163.64M | -164.23M | -232.74M | -192.46M | -134.34M | -173.15M | -210M | -245.6M | -278.3M | -278.29M | -240.41M | -263.6M | -284.6M | -393.72M | -413.13M | -272.77M |
| Interest Income | 83M | 111M | 122.64M | 28.17M | 8.79M | 3.13M | 2.79M | 3.94M | 4.13M | 3.6M | 3.16M | 5.09M | 6.15M | 5M | 6.82M | 8.53M | 4.99M | 10.66M | 36.65M | 26.83M | 12.94M | 11.49M | 6.49M |
| Interest Expense | 479M | 840M | 506.99M | 154.48M | 146.5M | 126.14M | 119.11M | 167.59M | 168.36M | 236.34M | 195.62M | 139.43M | 179.3M | 215M | 252.42M | 286.84M | 283.28M | 251.07M | 300.25M | 311.43M | 406.66M | 424.62M | 279.26M |
| Other Income/Expense | -1.05B | -1.26B | -431.49M | -211.96M | -123.27M | -157.27M | -143M | -207M | -1.65B | -265.13M | -169.32M | -122.45M | -344.13M | -481.92M | -411.3M | -377.16M | -406.97M | -457.05M | -407.88M | -571.7M | -492.75M | -570.09M | -296.58M |
| Pretax Income | 653M | 959M | 540.57M | 1.03B | 1.33B | 947.13M | 748M | 677M | -462.14M | 691.03M | 687.81M | 654.89M | 459.65M | 405.98M | 421.88M | 387.53M | 136.99M | -74.5M | -15.31M | 247.72M | -188.88M | -302.7M | -31.88M |
| Pretax Margin % | 2.09% | 3.08% | 2.65% | 9.41% | 10.56% | 9.03% | 8.77% | 7.48% | -4.52% | 6.73% | 8.02% | 7.39% | 4.68% | 3.69% | 4.35% | 4.06% | 1.54% | -0.86% | -0.16% | 2.34% | -2.05% | -6.52% | -0.8% |
| Income Tax | 231M | 260M | 232.64M | 282.61M | 365.15M | 242.49M | 201M | 193M | 268.82M | 183.55M | 206.13M | 203.35M | 153.22M | 135.33M | 89.93M | 104.98M | 59.85M | 78.8M | 29.23M | 5.11M | 13.86M | -677.58K | 1.79M |
| Effective Tax Rate % | 35.38% | 27.11% | 43.04% | 27.42% | 27.42% | 25.6% | 26.87% | 28.51% | -58.17% | 26.56% | 29.97% | 31.05% | 33.33% | 33.33% | 21.32% | 27.09% | 43.69% | -105.77% | -190.91% | 2.06% | -7.34% | 0.22% | -5.6% |
| Net Income | 380M | 699M | 307.93M | 747.28M | 965.65M | 704.64M | 545M | 476M | -646M | 417M | 466.96M | 400M | 241M | 259.6M | 317.4M | 267M | 66.5M | -174.8M | -69.6M | 214.57M | -224.54M | -284.53M | -2.5M |
| Net Margin % | 1.22% | 2.24% | 1.51% | 6.82% | 7.65% | 6.72% | 6.39% | 5.26% | -6.31% | 4.06% | 5.44% | 4.51% | 2.45% | 2.36% | 3.27% | 2.8% | 0.75% | -2.01% | -0.71% | 2.02% | -2.44% | -6.13% | -0.06% |
| Net Income Growth % | -25.99% | 127% | -58.79% | -22.61% | 37.04% | 29.29% | 14.5% | 173.68% | -254.92% | -10.7% | 16.74% | 65.98% | -7.17% | -18.21% | 18.88% | 301.51% | 138.04% | -151.12% | -132.44% | 195.56% | 21.08% | -11284.89% | - |
| Net Income (Continuing) | 382M | 699M | 307.93M | 748.19M | 966.59M | 704.64M | 547M | 484M | -639M | 423M | 481.68M | 413M | 252M | 270.65M | 331.95M | 282.55M | 77.14M | -153.3M | -44.55M | 242.61M | -202.74M | -302.02M | -33.67M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40.55M | 38.24M |
| Minority Interest | 25M | 27M | 27M | 16M | 14.01M | 12.99M | 13M | 41M | 149.85M | 181.16M | 183M | 165.09M | 239.55M | 274.79M | 280.37M | 247.55M | 230.08M | 256.46M | 201.85M | 200.39M | 179.95M | 134.69M | 116.61M |
| EPS (Diluted) | 0.71 | 1.33 | 0.79 | 2.87 | 3.80 | 2.71 | 2.67 | 2.00 | -2.74 | 1.76 | 1.97 | 1.69 | 1.05 | 0.81 | 1.02 | 0.97 | 0.23 | -0.54 | -0.23 | 0.67 | -0.80 | -1.58 | -0.01 |
| EPS Growth % | -42.69% | 68.35% | -72.47% | -24.47% | 40.22% | 1.5% | 33.5% | 172.99% | -255.68% | -10.66% | 16.57% | 60.95% | 29.63% | -20.59% | 5.15% | 321.74% | 142.59% | -134.78% | -134.33% | 183.75% | 49.37% | -12957.85% | - |
| EPS (Basic) | - | 1.34 | 0.80 | 2.90 | 3.85 | 2.74 | 2.69 | 2.25 | -2.74 | 1.77 | 1.99 | 1.73 | 1.06 | 0.82 | 1.05 | 0.99 | 0.23 | -0.54 | -0.23 | 0.70 | -0.80 | -1.58 | -0.01 |
| Diluted Shares Outstanding | 538.89M | 526M | 389M | 260M | 261M | 260M | 251.09M | 238M | 236.01M | 237M | 237M | 236M | 235M | 233M | 230M | 226M | 219M | 218M | 218.01M | 205.33M | 205.63M | 205.63M | 205.63M |
| Basic Shares Outstanding | 510.53M | 522M | 386M | 258M | 258M | 257M | 248.8M | 237M | 236.01M | 237.2M | 236.8M | 236.13M | 234.89M | 229M | 224M | 222M | 219M | 218M | 218.01M | 198.19M | 205.63M | 205.63M | 205.63M |
| Dividend Payout Ratio | - | 109.58% | 211.09% | 52.32% | 36.14% | 50.66% | 58.68% | 56.01% | - | 54.95% | 37.39% | 38.54% | 53.99% | 37.23% | 20.83% | - | - | - | - | - | - | - | - |
Merger integration execution risk
As reported in financial statements, Smurfit Westrock's revenue growth surged to 186.5% in 2025Q2 following the merger, yet recent 2026Q1 figures show a deceleration to just 0.7%, suggesting that the initial inorganic boost has faded and organic demand remains muted across the combined global packaging footprint.
The dramatic revenue jump observed in mid-2025 reflects the consolidation of WestRock assets rather than underlying volume growth. Investors should monitor whether the company can transition from merger-driven scale to sustainable organic growth, as the current low single-digit growth rate indicates a challenging demand environment for corrugated products.
Based on reported figures, gross margins have contracted from 24.2% in 2024Q1 to 16.4% in 2026Q1, reflecting the significant impact of merger-related accounting adjustments and the integration of lower-margin US mill assets into the previously higher-margin Smurfit Kappa European operational framework.
The decline in gross margin suggests that the company is currently absorbing the costs of aligning disparate manufacturing systems and potentially facing a price-cost squeeze. This trend warrants further investigation into whether the current margin level represents a new structural baseline or a temporary trough caused by inventory step-up accounting.
According to recent SEC filings, operating margins have compressed to 3.3% in 2026Q1, down from 10.5% in 2024Q1, indicating that the company has yet to realize the anticipated operating leverage from its expanded scale and that SG&A expenses are currently scaling disproportionately relative to gross profit.
The inability of operating income to scale alongside revenue suggests that integration costs and administrative overhead are currently offsetting the benefits of the merger. Analysts should monitor whether management can streamline the combined cost structure to restore operating margins to historical levels seen prior to the consolidation.
As evidenced by the 2026Q1 net income of $65 million, which represents a sharp decline from the $384 million reported in 2025Q1, the company's bottom line appears highly sensitive to non-operating items and merger-related charges that complicate the assessment of true recurring earnings power.
The erratic nature of net income, including a net loss in 2025Q2, suggests that investors should focus on adjusted metrics to strip out the noise of purchase price allocation and integration expenses. The significant fluctuations in EPS suggest that the current earnings quality is low until the integration phase concludes.
While management emphasizes synergy realization, the 2026Q1 data suggests that the company's profitability is currently weaker than pre-merger levels, raising concerns that the integration of WestRock's commodity-heavy US assets may permanently dilute the higher-margin service-led model historically maintained by the Smurfit leadership team.
Short-sellers may focus on the persistent margin compression as evidence that the merger was a defensive move rather than a value-accretive one. The risk remains that the company may struggle to achieve the projected $500M+ in synergies if the cultural and operational integration of these two distinct entities faces further friction.
Quick answers to the most common questions about buying SW stock.
For fiscal year 2025, Smurfit Westrock Plc (SW) reported total revenue of $31.18B. This represents a 684.0% increase compared to $3.98B in 2004.
Smurfit Westrock Plc (SW) is profitable, generating $699.0M in net income for the fiscal year ending 2025 with a net profit margin of 2.2%.
Smurfit Westrock Plc (SW) reported an operating income of $2.22B, resulting in an operating profit margin of 7.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Smurfit Westrock Plc (SW) generated $6.04B in gross profit for the year, representing a gross profit margin of 19.4%. This demonstrates the company's core pricing power and production efficiency.