Smurfit Westrock plc
For the period ended May 1, 2025. Filed May 1, 2025.
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May 1, 2025 · Filed May 1, 2025
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Contents
EX-99.1 · Segment Information
Segment Information
We report our financial results of operations in the following three reportable segments:
| i. | North America, which includes operations in the U.S., Canada and Mexico. |
| ii. | Europe, the Middle East and Africa (“MEA”) and Asia-Pacific (“APAC”). |
| iii. | Latin America (“LATAM”), which includes operations in Central America and Caribbean, Argentina, Brazil, Chile, Colombia, Ecuador and Peru. |
Segment profitability is measured based on Adjusted EBITDA, defined as income before income taxes, unallocated corporate costs, depreciation, depletion and amortization, interest expense, net, pension and other postretirement non-service income (expense), net, share-based compensation expense, other expense, net, amortization of fair value step up on inventory, transaction and integration-related expenses associated with the Combination and other specific items that management believes are not indicative of the ongoing operating results of the business. The chief operating decision maker (“CODM”) uses Adjusted EBITDA for each segment predominantly: to forecast and assess the performance of the segments, individually and comparatively; to set pricing strategies for the segments; and to make decisions about the allocation of operating and capital resources to each segment strategically, in the annual budget and in the quarterly forecasting process. The CODM considers budget, or forecast, -to-actual variances on a quarterly and annual basis for segment Adjusted EBITDA to inform these decisions.
Financial information by segment is summarized below (in millions, except margins).
| Three Months Ended | |||
|---|---|---|---|
| March 31, | |||
| 2025 · 2024 | |||
| Net sales (aggregate) | |||
| North America | $4,669 | $412 | |
| Europe, MEA and APAC | 2,582 | 2,194 | |
| LATAM | 513 | 341 | |
| Total | $7,764 | $2,947 | |
| Less net sales (intersegment) | |||
| North America | $91 | $ | - |
| Europe, MEA and APAC | 6 | 4 | |
| LATAM | 11 | 13 | |
| Total | $108 | $17 | |
| Net sales (unaffiliated customers) | |||
| North America | $4,578 | $412 | |
| Europe, MEA and APAC | 2,576 | 2,190 | |
| LATAM | 502 | 328 | |
| Total | $7,656 | $2,930 | |
| Segment Adjusted EBITDA | |||
| North America | $785 | $59 | |
| Europe, MEA and APAC | 389 | 385 | |
| LATAM | 115 | 54 | |
| Total | $1,289 | $498 | |
| Adjusted EBITDA Margin | |||
| Adjusted EBITDA / Net sales (aggregate) | |||
| North America | 16.8% | 14.3% | |
| Europe, MEA and APAC | 15.1% | 17.6% | |
| LATAM | 22.5% | 16.0% | |
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Condensed Consolidated Balance Sheets (Unaudited)
(in millions, except share and per share data)
| March 31, | December 31, | |
|---|---|---|
| 2025 | 2024 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents (amounts related to consolidated variable interest entities of $7 million and $2 million at March 31, 2025 and December 31, 2024, respectively) | $797 | $855 |
| Accounts receivable, net (amounts related to consolidated variable interest entities of $806 million and $767 million at March 31, 2025 and December 31, 2024, respectively) | 4,548 | 4,117 |
| Inventories | 3,670 | 3,550 |
| Other current assets | 1,615 | 1,533 |
| Total current assets | 10,630 | 10,055 |
| Property, plant and equipment, net | 22,792 | 22,675 |
| Goodwill | 6,969 | 6,822 |
| Intangibles, net | 1,141 | 1,117 |
| Prepaid pension asset | 654 | 635 |
| Other non-current assets (amounts related to consolidated variable interest entities of $390 million and $389 million at March 31, 2025 and December 31, 2024, respectively) | 2,463 | 2,455 |
| Total Assets | $44,649 | $43,759 |
| Liabilities and Equity | ||
| Current liabilities: | ||
| Accounts payable | $3,171 | $3,290 |
| Accrued compensation and benefits | 799 | 882 |
| Current portion of debt | 1,300 | 1,053 |
| Other current liabilities | 2,175 | 2,108 |
| Total current liabilities | 7,445 | 7,333 |
| Non-current debt due after one year (amounts related to consolidated variable interest entities of $165 million and $8 million at March 31, 2025 and December 31, 2024, respectively) | 12,919 | 12,542 |
| Deferred tax liabilities | 3,608 | 3,600 |
| Pension liabilities and other postretirement benefits, net of current portion | 716 | 706 |
| Other non-current liabilities (amounts related to consolidated variable interest entities of $335 million and $335 million at March 31, 2025 and December 31, 2024, respectively) | 2,072 | 2,191 |
| Total liabilities | 26,760 | 26,372 |
| Equity: | ||
| Preferred stock; $0.001 par value; 500,000,000 shares authorized; 10,000 shares outstanding | - | - |
| Common stock; $0.001 par value; 9,500,000,000 shares authorized; 521,979,145 and 520,444,261 shares outstanding at March 31, 2025 and December 31, 2024, respectively | 1 | 1 |
| Deferred shares; €1 par value; 25,000 shares authorized; 25,000 shares outstanding | - | - |
| Treasury stock; at cost; 1,467,950 and 2,037,589 common stock at March 31, 2025 and December 31, 2024, respectively | (65) | (93) |
| Capital in excess of par value | 15,977 | 15,948 |
| Accumulated other comprehensive loss | (1,079) | (1,446) |
| Retained earnings | 3,030 | 2,950 |
| Total shareholders' equity | 17,864 | 17,360 |
| Noncontrolling interests | 25 | 27 |
| Total equity | 17,889 | 17,387 |
| Total liabilities and equity | $44,649 | $43,759 |
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Condensed Consolidated Statements of Cash Flows (Unaudited)
(in millions)
| Three Months Ended | ||
|---|---|---|
| March 31, | ||
| 2025 | 2024 | |
| Operating activities: | ||
| Net income | $382 | $191 |
| Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
| Depreciation, depletion and amortization | 603 | 148 |
| Cash surrender value increase in excess of premiums paid | (5) | - |
| Share-based compensation expense | 43 | 15 |
| Deferred income tax benefit | (29) | (2) |
| Pension and other postretirement funding more than cost | (23) | (8) |
| Other | 1 | 1 |
| Change in operating assets and liabilities, net of acquisitions and divestitures: | ||
| Accounts receivable | (342) | (196) |
| Inventories | (62) | 8 |
| Other assets | (47) | (51) |
| Accounts payable | (117) | (102) |
| Income taxes | (70) | 60 |
| Accrued liabilities and other | (99) | (22) |
| Net cash provided by operating activities | 235 | 42 |
| Investing activities: | ||
| Capital expenditures | (477) | (208) |
| Cash paid for purchase of businesses, net of cash acquired | (4) | - |
| Other | 5 | 1 |
| Net cash used for investing activities | (476) | (207) |
| Financing activities: | ||
| Additions to debt | 295 | 55 |
| Repayments of debt | (65) | (27) |
| Debt issuance costs | (5) | - |
| Changes in commercial paper, net | 246 | - |
| Other debt repayments, net | (16) | - |
| Repayments of finance lease liabilities | (16) | (1) |
| Tax paid in connection with shares withheld from employees | (64) | - |
| Purchases of treasury stock | - | (27) |
| Cash dividends paid to shareholders | (225) | - |
| Other | 1 | - |
| Net cash provided by financing activities | 151 | - |
| Effect of exchange rate changes on cash and cash equivalents | 32 | (24) |
| Decrease in cash and cash equivalents | (58) | (189) |
| Cash and cash equivalents at beginning of period | 855 | 1,000 |
| Cash and cash equivalents at end of period | $797 | $811 |
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