Smurfit WestRock Plc Q1 FY2025 earnings call

• Strong first quarter performance across all regions, with North America showing structural improvement in integration. EMEA and APAC had good performance despite challenges, and Latin America performed well driven by value approach. • Synergy program on track to deliver $400 million of synergies by end 2025, with additional operational improvements expected. • Streamlined operations in North America, reducing SG&A costs by over 1,800 people. • Announced closure of over 500,000 tons of paper capacity in the US, totaling nearly 600,000 tons with Mexico and Netherlands. • Implemented nearly 140 quick-win projects in North America and over 60 in EMEA/APAC for cost take-out, with IRRs from 25% to 150%. • Continued investment in asset base, authorizing 25 converting machines to be implemented in 2026.

North America: Net sales of $4.7 billion, adjusted EBITDA of $785 million, and an adjusted EBITDA margin of 16.8%. EMEA and APAC: Net sales of $2.6 billion, adjusted EBITDA of $389 million, and an adjusted EBITDA margin of 15.1%. Latin America: Net sales of $0.5 billion, adjusted EBITDA of $115 million, and an adjusted EBITDA margin of over 22%.

• Expect to realize approximately $350 million in adjusted EBITDA this financial year, with $80 million recognized in Q1. • Full year adjusted EBITDA expected between $5 billion and $5.2 billion. • Second quarter adjusted EBITDA expected to be approximately $1.2 billion, with additional downtime costing ~$100 million over Q1. • Synergy program on track to deliver $400 million full run rate synergies by end of 2025, with at least $400 million additional opportunities from operating and commercial focus.

• Geopolitical uncertainty affecting demand outlook. • Potential impact of capacity closures and associated processes (e.g., Warren Act in US, Works Council processes in Germany). • Volatility in waste paper prices, energy costs, and currency fluctuations. • Uncertainty around demand recovery and consumer confidence.

Q: On 2025 guidance assumptions, box volumes, and CapEx.

A: Tony and Ken discussed box volume expectations, CapEx flexibility, and impact of downtime.

Q: On mill closures and demand trends.

A: Ken and Tony talked about aggregate impact of mill closures, demand trends, and intra-quarter progress.

Q: On $100M downtime in Q2.

A: Tony explained it's a Q2 issue, with impact on subsequent quarters.

Q: On FX and waste paper in Europe.

A: Ken discussed FX impact and waste paper price volatility.

Q: On future M&A and trade flows.

A: Tony addressed M&A focus and impact of Chinese trade flows.

Q: On consumer board and capital allocation.

A: Tony spoke about learnings in consumer board and capital allocation strategy.