Smurfit Westrock Plc Q2 FY2025 earnings call

• Successfully integrated Smurfit Kappa Group and Westrock, delivering over $400 million in synergies with potential for more. - North American business showing improvement with operational and commercial focus; European business near a low in a challenging market; Latin American operations had strong margin performance. - Announced restructuring and closure of non-strategic assets. Fitch upgraded long-term debt to BBB+ with stable outlook. - Invested $1 billion in system, initiated quick win programs to cut costs. Received 39 awards for innovative tools and applications. Focus on sustainability and being a preferred packaging partner.

North America: Net sales of $4.8 billion, adjusted EBITDA of $752 million, adjusted EBITDA margin of 15.8%. EMEA and APAC: Net sales of $2.8 billion, adjusted EBITDA of $372 million, adjusted EBITDA margin of 13.4%. Latin America: Net sales of $0.5 billion, adjusted EBITDA of $123 million, adjusted EBITDA margin of over 23%.

• Adjusted EBITDA for Q3 expected to be approximately $1.3 billion. Full-year adjusted EBITDA guidance remains between $5 billion and $5.2 billion. - Synergy program on track to deliver $400 million full-year run rate by end of 2025, with additional $400 million opportunities from sharper focus.

• Macroeconomic uncertainties affecting market conditions. Tariff impacts on volumes and pricing. Potential for further capacity closures in Europe. Labor and energy cost headwinds.

Q: Details on cutting loss-making corrugated in North America.

A: 40% of plants moved to profit, replacing unprofitable accounts with better ones.

Q: Tariffs and consumer confidence in key markets.

A: Tariffs already had impact, consumer confidence uncertain but seasonality expected to pick up.

Q: Wind down of loss-making contracts in North America.

A: Most unprofitable contracts expected to be wound down by next year.

Q: CapEx outlook.

A: Strategic plan to be detailed in February, with earlier steer on CapEx later in the year.