Shares of Smurfit WestRock PLC (SW) tumbled 5.91% in pre-market trading on Wednesday after the packaging giant reported second-quarter adjusted earnings that missed analyst estimates and cut its full-year outlook, citing persistently high freight costs.

The company posted adjusted earnings of $0.35 per basic share for the quarter ended June 30, down from $0.44 a year earlier and below the FactSet consensus of $0.42. Revenue rose to $8.03 billion from $7.94 billion, slightly topping the $7.91 billion forecast. Smurfit Kappa CFO stated that increased freight costs were the “singular reason” for a reduction to the full-year earnings outlook. The company now expects full-year non-GAAP adjusted EBITDA between $4.9 billion and $5.1 billion, with third-quarter adjusted EBITDA guided to approximately $1.3 billion.

Management flagged significantly higher input costs, particularly freight, which overshadowed strong paper demand and full mill operations. The CFO added that freight costs are expected to remain elevated for the rest of the year, continuing to weigh on margins.