Markets

Smurfit Westrock Stock Plunges 7%, Wiping Out $1.6 Billion, After Cut To 2026 Outlook

The packaging maker cut its 2026 adjusted EBITDA outlook to near $4.7 billion as freight and energy costs outran its price increases.

Smurfit Westrock, the paper-based packaging maker, saw its shares fall 7.22% to $39.47 in Wednesday trading as of 12:50 p.m. ET, erasing $1.6 billion in market value, on the day it lowered its full-year earnings outlook. Third-quarter earnings came in below last year's as freight and energy inflation ran ahead of price increases.

Outlook cut to near $4.7 billion

In an SEC filing, the company cut its 2026 adjusted EBITDA outlook (earnings before interest, taxes, depreciation and amortization) to near $4.7 billion.

Third-quarter adjusted earnings were $0.45 a share, against $0.58 a year earlier. Revenue rose to $8,161 million from $8,003 million, the company reported.

On the earnings call, management said it expects to absorb about $700 million of extra freight and energy costs this year. The full benefit of its price increases will arrive in 2027, it said.

A box maker with 57 mills

Smurfit Westrock makes corrugated boxes from containerboard, plus folding cartons and other consumer packaging, and employs about 97,000 people. According to its 10-K for 2025, it runs 57 paper mills and 450 converting plants across 40 countries. North America made up 58.5% of 2025 net sales to external customers, and most products went to makers of fast-moving consumer goods.

Its market value stood at about $21 billion intraday after the drop.

A stock that had held up

Shares were up about 10% for the year at Tuesday's close, trailing the S&P 500's gain of about 13%. Wednesday's drop was on pace to be the biggest one-day fall since Oct. 29, 2025, when the shares fell 12.2%.

In its latest quarterly filing, for the period ended June 30, the company reported revenue of $8 billion, up 1.2% from a year earlier, net income of $89 million and an operating margin of 3.9%.

Management said October volumes are in line with last year and that it is watching the outcome of the U.S. midterm elections as it gauges November demand.