Smurfit Westrock · Earnings release

www.smurfitwestrock.com

Smurfit Westrock Reports Third Quarter 2025 Results

Dublin – October 29, 2025 –Smurfit Westrock plc (NYSE: SW, LSE: SWR) today announced the financial results for the third quarter ended September 30, 2025.

Key points:

·

Net Sales of $8,003 million

·

Net Income of $245 million, with a Net Income Margin of 3.1%

·

Adjusted EBITDA1 of $1,302 million, with an Adjusted EBITDA Margin1 of 16.3%

·

Net Cash Provided by Operating Activities of $1,133 million

·

Adjusted Free Cash Flow1 of $579 million

·

Quarterly dividend of $0.4308 per ordinary share

Smurfit Westrock plc’s performance for the three months ended

September 30, 2025 and 2024 (in millions, except margins and per share data):

Net Sales

$

$

Net Income (Loss)

$

$

)

Net Income (Loss) Margin

%

)%

Adjusted EBITDA1

$

$

Adjusted EBITDA Margin1

%

%

Net Cash Provided by Operating Activities

$

$

Adjusted Free Cash Flow1

$

$

Basic EPS

$

$

)

Adjusted Basic EPS1

$

$

Tony Smurfit, President and CEO, commented:

“I am pleased to report that for the third quarter,

we delivered in-line with our Adjusted EBITDA guidance. This performance was driven by the continued operational and commercial improvements

in our North American business and our strong positions in EMEA and APAC and Latin America.

“We are reporting Net Income of

$245 million and Adjusted EBITDA1 of $1,302 million, with an Adjusted EBITDA Margin1 of 16.3% and a strong Net Cash Provided by Operating Activities of $1,133 million.

“The operational and commercial improvement in

our North American business is increasingly evident, with an Adjusted EBITDA of $810 million and an Adjusted EBITDA margin of 17.2% for

the quarter. The North American mill system demonstrated a strong operational performance in the quarter. Our corrugated operations continue

to focus on value over volume and exiting uneconomic business. This approach, together with our focus on delivering innovation, quality

and service for our customer base, has delivered a strong improvement in returns. Our consumer business also continues to improve as a

result of already implemented restructurings, utilizing the full breadth of our paper portfolio and a unique and innovative product offering.

“We believe we are one of the market leaders

in EMEA and APAC, where we have once again demonstrated good returns despite a difficult market backdrop to deliver Adjusted EBITDA of

$419 million with an Adjusted EBITDA margin of 14.8%. As a result of our integrated model, our mill system continues to run close to full

utilization. While the backdrop from a paper supply perspective remains challenging, our value-added proposition in our packaging business

is reflected in the resilience of our margin despite the softer demand environment. We believe the EMEA and APAC region is well positioned

to benefit from improved demand, supported by a well invested asset base and strong market positions.

1 Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free

Cash Flow and Adjusted Basic EPS are non-GAAP measures. See the “Non-GAAP Financial Measures and Reconciliations” below for

discussion and reconciliation of these measures to the most comparable GAAP measures.

2All results reported for the three months ended September 30, 2024 do not include the financial results of legacy WestRock Company (''WestRock'')

for the first five days of July due to the closing of the combination between Smurfit Kappa Group plc and WestRock Company on July 5,

“Our Latin American operations delivered Adjusted

EBITDA of $116 million for the quarter, with an Adjusted EBITDA margin of 21.3%, reflecting continued operational improvement and our

strong market positions. The slightly lower margin quarter-on-quarter is primarily a result of a one-time operational issue which has

now been resolved. Latin America remains a compelling growth region, both organically and inorganically.

“The year to date has been characterized by a

challenging demand backdrop and as a result we expect to take additional economic downtime in the fourth quarter to optimize our system.

As a result, G1we now expect to deliver full year Adjusted EBITDA3 in a $4.9 to $5.1 billion range. G2Our 2026 capital spend

is expected to be in a $2.4 to $2.5 billion range. This level of spend allows us to continue optimizing our asset base, accelerating cost

take-out and capitalizing high-growth areas.

“Our third quarter results reflect the significant

progress we have made since the creation of Smurfit Westrock some 16 months ago. The steps we have taken, and continue to take, are building

a better business and as we end 2025 and enter 2026 we are a much stronger Company, increasingly excited about our future prospects.”

Dividend

Smurfit Westrock plc announced today that its Board

approved a quarterly dividend of $0.4308 per share on its ordinary shares. The quarterly dividend of $0.4308 per ordinary share is payable

on December 18, 2025 to shareholders of record at the close of business on November 14, 2025.

The default payment currency is U.S. Dollar for shareholders

who hold their ordinary shares through a Depository Trust Company participant. It is also U.S. Dollar for shareholders holding their ordinary

shares in registered form, unless a currency election has been registered with the Company’s Transfer Agent, Computershare Trust

The default payment currency for shareholders holding

their ordinary shares in the form of Depository Interests is U.S. Dollar. Such shareholders can elect to receive the dividend in Pounds

Sterling or Euro by providing their instructions to the Company’s Depositary Interest provider, Computershare Investor Services

Earnings Call

Management will host an earnings conference call today at 7:30 AM ET

/ 11:30 AM GMT to discuss Smurfit Westrock’s financial results. The conference call will be accessible through a live webcast. Interested

investors and other individuals can access the webcast, earnings release, and earnings presentation via the Company’s website at

www.smurfitwestrock.com. The webcast will be available at https://investors.smurfitwestrock.com/overview and a replay of the webcast will

be available on the website shortly after the call.

3Adjusted EBITDA is a non-GAAP financial measure. We have not reconciled Adjusted EBITDA outlook to the most comparable GAAP outlook because

it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which

are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot

be reasonably predicted with the level of precision required, we are unable to provide an outlook for the comparable GAAP measure (net

income).

Forward Looking Statements

This press release includes certain “forward-looking

statements” (including within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities

Exchange Act of 1934, as amended) regarding, among other things, the plans, strategies, outcomes, outlooks, and prospects, both business

and financial, of Smurfit Westrock, the expected benefits of the completed combination of Smurfit Kappa Group plc and WestRock Company

(the “Combination”), including, but not limited to, synergies as well as our scale, geographic reach and product portfolio,

demand outlook, impact of announced closures, additional economic downtime and any other statements regarding the Company's future expectations,

beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events, outlook or performance. Statements

that are not historical facts, including statements about the beliefs and expectations of the management of the Company, are forward-looking

statements. Words such as “may”, “will”, “could”, “should”, “would”, “anticipate”, “intend”, “estimate”, “project”, “plan”, “believe”, “expect”, “target”, “prospects”, “potential”, “commit”, “forecasts”, “aims”, “considered”, “likely” and variations of these words and similar future or conditional expressions are intended

to identify forward-looking statements but are not the exclusive means of identifying such statements. While the Company believes these

expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve

known and unknown risks and uncertainties, many of which are beyond the control of the Company. By their nature, forward-looking statements

involve risk and uncertainty because they relate to events and depend upon future circumstances that may or may not occur. Actual results

may differ materially from the current expectations of the Company depending upon a number of factors affecting its business, including

risks associated with the integration and performance of the Company following the Combination. Important factors that could cause actual

results to differ materially from plans, estimates or expectations include: changes in demand environment, our ability to deliver on our

closure plan and associated efforts; our future cash payments associated with these initiatives; potential future cost savings associated

with such initiatives; the amount of charges and the timing of such charges or actions described herein; potential future impairment charges;

accuracy of assumptions associated with the charges; economic, competitive and market conditions generally, including macroeconomic uncertainty,

customer inventory rebalancing, the impact of inflation and increases in energy, raw materials, shipping, labor and capital equipment

costs; geo-economic fragmentation and protectionism such as tariffs, trade wars or similar governmental actions affecting the flows of

goods, services or currency (including the implementation of tariffs by the US federal government and reciprocal tariffs and other protectionist

or retaliatory measures governments in Europe, Asia, and other countries have taken or may take in response); the impact of prolonged

or recurring U.S. federal government shutdowns and any resulting volatility in the capital markets or interruptions in the Company’s

access to capital; the impact of public health crises, such as pandemics and epidemics and any related company

or governmental policies and actions to protect the health and safety of individuals or governmental policies or actions to maintain the

functioning of national or global economies and markets; reduced supply of raw materials, energy and transportation, including from supply

chain disruptions and labor shortages; developments related to pricing cycles and volumes; intense competition; the ability of the Company

to successfully recover from a disaster or other business continuity problem due to a hurricane, flood, earthquake, terrorist attack,

war, pandemic, security breach, cyber-attack, power loss, telecommunications failure or other natural or man-made events, including the

ability to function remotely during long-term disruptions; the Company's ability to respond to changing customer preferences and to protect

intellectual property; the amount and timing of the Company's capital expenditures; risks related to international sales and operations;

failures in the Company's quality control measures and systems resulting in faulty or contaminated products; cybersecurity risks, including

threats to the confidentiality, integrity and availability of data in the Company's systems; works stoppages and other labor disputes;

the Company’s ability to establish and maintain effective internal controls over financial reporting in accordance with the Sarbanes

Oxley Act of 2002, as amended, and remediate any weaknesses in controls and processes; the Company's ability to retain or hire key personnel;

risks related to sustainability matters, including climate change and scarce resources, as well as the Company's ability to comply with

changing environmental laws and regulations; the Company's ability to successfully implement strategic transformation initiatives; results

and impacts of acquisitions by the Company; the Company's significant levels of indebtedness; the impact of the Combination on the Company's

credit ratings; the potential impairment of assets and goodwill; the availability of sufficient cash to distribute dividends to the Company's

shareholders in line with current expectations; the scope, costs, timing and impact of any restructuring of operations and corporate and

tax structure; evolving legal, regulatory and tax regimes; changes in economic, financial, political and regulatory conditions in Ireland,

the United Kingdom, the United States and elsewhere, and other factors that contribute to uncertainty and volatility, natural and man-made

disasters, civil unrest, geopolitical uncertainty, and conditions that may result from legislative, regulatory, trade and policy changes

associated with the current or subsequent Irish, US or UK administrations; legal proceedings instituted against the Company; actions by

third parties, including government agencies; the Company's ability to promptly and effectively integrate Smurfit Kappa's and WestRock's

businesses; the Company's ability to achieve the synergies and value creation contemplated by the Combination; the Company's ability to

meet expectations regarding the accounting and tax treatments of the Combination, including the risk that the Internal Revenue Service

may assert that the Company should be treated as a US corporation or be subject to certain unfavorable US federal income tax rules under

Section 7874 of the Internal Revenue Code of 1986, as amended, as a result of the Combination; other factors such as future market conditions,

currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as changes in the political,

social and regulatory framework in which the Company's group operates or in economic or technological trends or conditions, and other

risk factors included in the Company's filings with the Securities and Exchange Commission, including the Company’s Annual Report

on Form 10-K for the fiscal year ended December 31, 2024. Neither the Company nor any of its associates or directors, officers or advisers

provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any such forward-looking

statements will actually occur. You are cautioned not to place undue reliance on these forward-looking statements. Other than in accordance

with its legal or regulatory obligations (including under the UK Listing Rules, the Disclosure Guidance and Transparency Rules, the UK

Market Abuse Regulation and other applicable regulations), the Company is under no obligation, and the Company expressly disclaims any

intention or obligation, to update or revise publicly any forward-looking statements, whether as a result of new information, future events

or otherwise.

About Smurfit Westrock

Smurfit Westrock is a leading provider of paper-based

packaging solutions in the world, with approximately 100,000 employees across 40 countries.

Contact

Ciarán Potts

Smurfit Westrock

E: ir@smurfitwestrock.com

FTI Consulting

E: smurfitwestrock@fticonsulting.com

Condensed Consolidated Statements of Operations (Unaudited)

(in millions, except per share data)

Three months ended

Nine months ended

Net sales

$

$

$

$

Cost of goods sold

)

)

)

)

Gross profit

Selling, general and administrative expenses

)

)

)

)

Impairment and restructuring costs

)

)

)

)

Transaction and integration-related expenses associated with the Combination

)

)

)

)

Operating profit

Pension and other postretirement non-service income (expense), net

8

8

)

Interest expense, net

)

)

)

)

Other expense, net

)

)

)

)

Income (loss) before income taxes

)

Income tax expense

)

)

)

)

Net income (loss)

)

Net loss attributable to noncontrolling interests

1

-

1

-

Net income (loss) attributable to common shareholders

$

$

)

$

$

Basic earnings (loss) per share attributable to common shareholders

$

$

)

$

$

Diluted earnings (loss) per share attributable to common shareholders

$

$

)

$

$

Segment Information

We report our financial results of operations in the following three

reportable segments:

i.

North America, which includes operations in the U.S., Canada and Mexico.

ii.

Europe, the Middle East and Africa (“MEA” and together with Europe, “EMEA” ) and Asia-Pacific (“APAC”).

iii.

Latin America (“LATAM”), which includes operations in Central America and Caribbean, Argentina, Brazil, Chile, Colombia,

Ecuador and Peru.

Segment profitability is measured based on Adjusted EBITDA, defined

as income (loss) before income taxes, unallocated corporate costs, depreciation, depletion and amortization, interest expense, net, pension

and other postretirement non-service income (expense), net, share-based compensation expense, other expense, net, impairment and restructuring

costs, transaction and integration-related expenses associated with the Combination, amortization of fair value step up on inventory and

other specific items that management believes are not indicative of the ongoing operating results of the business.

Financial information by segment is summarized below (in millions,

except margins).

Three months ended

Nine months ended

Net sales (aggregate)

North America

$

$

$

$

Europe, MEA and APAC

LATAM

Total

$

$

$

$

Less net sales (intersegment)

North America

$

$

$

$

Europe, MEA and APAC

5

LATAM

-

Total

$

$

$

$

Net sales (unaffiliated customers)

North America

$

$

$

$

Europe, MEA and APAC

LATAM

Total

$

$

$

$

Segment Adjusted EBITDA

North America

$

$

$

$

Europe, MEA and APAC

LATAM

Total

$

$

$

$

Adjusted EBITDA Margin

(Adjusted EBITDA/Net sales (aggregate))

North America

%

%

%

%

Europe, MEA and APAC

%

%

%

%

LATAM

%

%

%

%

Condensed Consolidated Balance Sheets (Unaudited)

(in millions, except share data)

Assets

Current assets:

Cash and cash equivalents (amounts related to consolidated variable interest entities of $4 million and $2 million at September 30, 2025 and December 31, 2024, respectively)

$

$

Accounts receivable, net (amounts related to consolidated variable interest entities of $882 million and $767 million at September 30, 2025 and December 31, 2024, respectively)

Inventories

Other current assets

Total current assets

Property, plant and equipment, net

Goodwill

Intangibles, net

Prepaid pension asset

Other non-current assets (amounts related to consolidated variable interest entities of $393 million and $389 million at September 30, 2025 and December 31, 2024, respectively)

Total assets

$

$

Liabilities and Equity

Current liabilities:

Accounts payable

$

$

Accrued compensation and benefits

Current portion of debt

Other current liabilities

Total current liabilities

Non-current debt due after one year (amounts related to consolidated variable interest entities of $295 million and $8 million at September 30, 2025 and December 31, 2024, respectively)

Deferred tax liabilities

Pension liabilities and other postretirement benefits, net of current portion

Other non-current liabilities (amounts related to consolidated variable interest entities of $334 million and $335 million at September 30, 2025 and December 31, 2024, respectively)

Total liabilities

Equity:

Preferred stock; $0.001 par value; 500,000,000 shares authorized; 10,000 shares outstanding

-

-

Common stock; $0.001 par value; 9,500,000,000 shares authorized; 522,171,580 and 520,444,261 shares outstanding at September 30, 2025 and December 31, 2024, respectively

1

1

Deferred shares; €1 par value; 25,000 shares authorized; Nil and 25,000 shares outstanding at September 30, 2025 and December 31, 2024, respectively

-

-

Treasury stock; at cost; 1,449,658 and 2,037,589 common stock at September 30, 2025 and December 31, 2024, respectively

)

)

Capital in excess of par value

Accumulated other comprehensive loss

)

)

Retained earnings

Total shareholders’ equity

Noncontrolling interests

Total equity

Total liabilities and equity

$

$

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in millions)

Three months ended

Nine months ended

Operating activities:

Net income (loss)

$

$

)

$

$

Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities:

Depreciation, depletion and amortization

Impairment charges

2

2

Cash surrender value increase in excess of premiums paid

)

)

)

)

Share-based compensation expense

Deferred income tax benefit

)

)

)

)

Pension and other postretirement funding more than cost

)

)

)

)

Other

Change in operating assets and liabilities, net of acquisitions and divestitures:

Accounts receivable

)

)

)

Inventories

(4

)

)

Other assets

)

)

Accounts payable

)

)

)

)

Income taxes

(1

)

)

8

Accrued liabilities and other

Net cash provided by operating activities

Investing activities:

Capital expenditures

)

)

)

)

Cash paid for purchase of businesses, net of cash acquired

-

)

(5

)

)

Proceeds from corporate owed life insurance

2

2

Proceeds from sale of property, plant and equipment

Other

1

1

Net cash used for investing activities

)

)

)

)

Financing activities:

Additions to debt

Repayments of debt

)

)

)

)

Debt issuance costs

(2

)

)

(8

)

)

Changes in commercial paper, net

)

)

)

)

Other debt additions (repayments), net

2

)

Repayments of finance lease liabilities

(6

)

)

)

)

Tax paid in connection with shares withheld from employees

(1

)

)

)

)

Purchases of treasury stock

-

-

-

)

Cash dividends paid to shareholders

)

)

)

)

Other

2

-

3

(1

)

Net cash (used for) provided by financing activities

)

)

)

Effect of exchange rate changes on cash and cash equivalents

)

4

)

Increase (decrease) in cash and cash equivalents

)

(4

)

)

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

$

$

$

$

Non-GAAP Financial Measures and Reconciliations

Smurfit Westrock reports its

financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). However, management

believes certain non-GAAP financial measures provide Smurfit Westrock’s Board of directors, investors, potential investors, securities

analysts and others with additional meaningful financial information that should be considered when assessing its ongoing performance.

Smurfit Westrock management also uses these non-GAAP financial measures in making financial, operating and planning decisions, and in

evaluating company performance. Non-GAAP financial measures are not intended to be considered in isolation of or as a substitute for,

or superior to, financial information prepared and presented in accordance with GAAP and should be viewed in addition to, and not as an

alternative for, the GAAP results. The non-GAAP financial measures we present may differ from similarly captioned measures presented by

other companies. Smurfit Westrock uses the non-GAAP financial measures “Adjusted EBITDA”, “Adjusted EBITDA Margin”, “Adjusted Free Cash Flow” and “Adjusted Basic Earnings Per Share” (referred to as “Adjusted Basic EPS”).

We discuss below details of the non-GAAP financial measures presented by us and provide reconciliations of these non-GAAP financial measures

to the most directly comparable financial measures calculated in accordance with GAAP.

Definitions

Smurfit Westrock

uses the non-GAAP financial measures “Adjusted EBITDA” and “Adjusted EBITDA Margin” to evaluate its overall performance.

The composition of Adjusted EBITDA is not addressed or prescribed by GAAP. Smurfit Westrock defines Adjusted EBITDA as net income (loss)

before income tax expense, depreciation, depletion and amortization, interest expense, net, pension and other postretirement non-service

income (expense), net, share-based compensation expense, other expense, net, impairment and restructuring costs, transaction and integration-related

expenses associated with the Combination, amortization of fair value step up on inventory and other specific items that management believes

are not indicative of the ongoing operating results of the business.

Management believes

Adjusted EBITDA and Adjusted EBITDA Margin measures provide Smurfit Westrock’s management, Board of directors, investors, potential

investors, securities analysts and others with useful information to evaluate Smurfit Westrock’s performance relative to other periods

because it adjusts out non-recurring items that management believes are not indicative of the ongoing results of the business. Adjusted

EBITDA Margin is calculated as Adjusted EBITDA divided by Net Sales.

Smurfit Westrock uses the non-GAAP

financial measure “Adjusted Free Cash Flow”. Smurfit Westrock defines Adjusted Free Cash Flow as net cash provided by operating

activities as adjusted for capital expenditures and to exclude certain costs not reflective of underlying ongoing operations. Management

utilizes this measure in connection with managing Smurfit Westrock’s business and believes that Adjusted Free Cash Flow is useful

to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business,

to maintain a strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth. It should not

be inferred that the entire free cash flow amount is available for discretionary expenditures. By adjusting for certain items that are

not indicative of Smurfit Westrock’s underlying operational performance, Smurfit Westrock believes that Adjusted Free Cash Flow

also enables investors to perform meaningful comparisons between past and present periods.

Smurfit Westrock uses the non-GAAP financial measure “Adjusted

Basic EPS”. Management believes this measure provides Smurfit Westrock’s management, Board of directors, investors, potential

investors, securities analysts and others with useful information to evaluate Smurfit Westrock’s performance because it excludes,

impairment and restructuring costs, transaction and integration-related expenses associated with the Combination, amortization of fair

value step up on inventory and other specific items that management believes are not indicative of the ongoing operating results of the

business. Smurfit Westrock and its Board of directors use this information when making financial, operating and planning decisions

and when evaluating Smurfit Westrock’s performance relative to other periods. Smurfit Westrock believes that the most directly comparable

GAAP measure to Adjusted Basic EPS is Basic earnings (loss) per share attributable to common shareholders (referred to as “Basic

EPS”).

Reconciliations to Most Comparable GAAP Measure

Set forth below is a reconciliation of the non-GAAP financial measures

Adjusted EBITDA and Adjusted EBITDA Margin to Net Income (Loss) and Net Income (Loss) Margin, the most directly comparable GAAP measures,

for the periods indicated (in millions, except margins).

Three months ended

Nine months ended

Net income (loss)

$

$

)

$

$

Income tax expense

Depreciation, depletion and amortization

Impairment and restructuring costs

Transaction and integration-related expenses associated with the Combination

Amortization of fair value step up on inventory

-

-

Interest expense, net

Pension and other postretirement non-service (income) expense, net

(8

)

(8

)

)

Share-based compensation expense

Other expense, net

Other adjustments

2

8

)

Adjusted EBITDA

$

$

$

$

Net Sales

$

$

$

$

Net Income (Loss) Margin

(Net Income (Loss)/Net Sales)

%

%

%

%

Adjusted EBITDA Margin

(Adjusted EBITDA/Net Sales)

%

%

%

%

Set forth below is a reconciliation of the non-GAAP financial measure

Adjusted Free Cash Flow to Net cash provided by operating activities, the most directly comparable GAAP measure, for the periods indicated

(in millions).

Three months ended

Nine months ended

Net cash provided by operating activities

$

$

$

$

Capital expenditures

)

)

)

)

Free Cash Flow

$

$

)

$

$

)

Adjustments:

Transaction and integration costs

Restructuring costs

Tax on above items

)

)

)

)

Adjusted Free Cash Flow

$

$

$

$

Set forth below is a reconciliation of the non-GAAP financial measure

Adjusted Basic EPS to Basic EPS, the most directly comparable GAAP measure for the periods indicated.

Three months ended

Nine months ended

Basic EPS

$

$

)

$

$

Impairment and restructuring costs

Transaction and integration-related expenses associated with the Combination

Amortization of fair value step up on inventory

-

-

Loss on debt extinguishment and deferred debt issue costs amortized

-

-

Other adjustments

-

)

Income tax on above items

)

)

)

)

Adjusted Basic EPS

$

$

$

$