Shares of Smurfit WestRock PLC (NYSE: SW) tumbled 5.31% in pre-market trading on Wednesday after the world's largest cardboard box maker cut its full-year profit forecast, citing persistent weak demand in North America. The company's decision to implement additional factory downtime in the fourth quarter, primarily in North America, further underscores the challenging market conditions.

Smurfit WestRock revised its full-year adjusted EBITDA guidance to between $4.9 billion and $5.1 billion, down from the previous range of $5.0 to $5.2 billion. This adjustment comes as the company grapples with sluggish demand, particularly in the U.S. food, retail, and e-commerce sectors. Chief Financial Officer Ken Bowles commented, "We're just being prudent around how we see the world shaping up as we get to the end of 2025. The demand patterns in the United States that we talked about reversing during the year and hoping would come through still don't seem to be there."

Despite the challenges, Smurfit WestRock reported some positive developments. The company has successfully turned 65-70% of previously loss-making U.S. contracts inherited from its $11 billion acquisition of WestRock in 2024 into profitable ones, up from 40% at the end of July. Additionally, European demand remains relatively stable, with Bowles noting that it was "bouncing around okay." However, the company's third-quarter earnings of $0.58 per share missed analyst expectations of $0.71 per share, further contributing to investor concerns and the stock's decline.