Smurfit WestRock PLC (SW) experienced a significant pre-market decline of 6.54% on Wednesday, following the release of its fourth-quarter and full-year 2025 financial results.
The packaging solutions company reported net income of $98 million for Q4 2025, a decrease from $146 million in the same quarter last year. The net income margin contracted to 1.3% from 1.9%, while basic earnings per share fell to $0.19 from $0.28. Adjusted basic EPS also declined to $0.34 from $0.47 in the prior year period.
CEO Tony Smurfit acknowledged "difficult market conditions" in the quarter. The company's North America segment showed weaker performance, with Adjusted EBITDA dropping to $651 million from $710 million year-over-year, as the company took additional downtime to balance its system and manage working capital. These results appear to have disappointed investors, leading to the sharp pre-market sell-off.