Smurfit Westrock · Earnings release

www.smurfitwestrock.com

Smurfit Westrock Reports First Quarter 2025 Results

Dublin – May 1, 2025 –Smurfit Westrock plc (NYSE: SW, LSE: SWR) today announced the financial results for the first quarter ended March 31, 2025.

Key points:

·

First quarter Net Sales of $7,656 million

·

First quarter Net Income of $382 million, with a Net Income Margin of 5.0%

·

First quarter Adjusted EBITDA1 of $1,252 million, with an Adjusted EBITDA Margin1of 16.4%

·

Quarterly dividend of $0.4308 per ordinary share

Smurfit Westrock plc’s performance for the three months ended

Net Sales

$

$

Net Income

$

$

Net Income Margin

%

%

Adjusted EBITDA1

$

$

Adjusted EBITDA Margin1

%

%

Net Cash provided by Operating Activities

$

$

Adjusted Free Cash Flow1

$

)

$

)

Tony Smurfit, President and CEO, commented:

“I am pleased to report a strong first quarter

performance with Net Income of $382 million, Adjusted EBITDA of $1,252 million, in-line with our stated guidance, and an Adjusted

EBITDA margin of 16.4%. This performance was driven by good results across all three segments, with notable progress in North America,

and is significantly ahead of the combined result for the prior year.

“I am especially pleased with how well the combination

has come together, with strong operational and cultural integration taking place across all three regions. Coupled with our geographic

footprint and our unrivalled portfolio of innovative and sustainable packaging solutions, we have a customer-focused and performance-driven

team that is delivering for all stakeholders.

“Our synergy program is on track to deliver $400

million, with approximately $350 million in the current year. We believe there is substantial opportunity to continue to structurally

improve the business through a sharper commercial and operational focus, at least equal to our synergy target.

“We continue to actively optimize our asset base.

We have recently announced the closure of over 500,000 tons of paper capacity in North America. We are also closing two converting facilities

in our North American region and have initiated consultations to close two of our converting facilities in EMEA & APAC.

“To consolidate our leadership position and better

support our customers, we have constructed two state-of-the-art converting plants in Washington and Wisconsin and are completing a new

Bag-in-Box facility in South Carolina in our North American region. Comparable investments in EMEA & APAC, in high-performing converting

equipment, will reduce our cost base and strengthen our overall footprint in the region while in Latin America, we continue to invest

in cost take-out and growth projects, for example, the biomass boiler in Colombia which is nearing completion.

1 Adjusted EBITDA, Adjusted

EBITDA Margin and Adjusted Free Cash Flow are non-GAAP measures. See the “Non-GAAP Financial Measures and Reconciliations”

below for discussion and reconciliation of these measures to the most comparable GAAP measures.

2 All results reported for the three months ended March 31, 2024 reflect the historical financial results

of legacy Smurfit Kappa Group plc, which is considered the accounting acquirer in the combination between Smurfit Kappa Group plc and

WestRock Company, which closed on July 5, 2024.

“Consistent with our disciplined operating approach

and before we see the impact in our system of the announced closures, we expect to incur additional economic downtime in the second quarter

costing approximately $100 million versus the first quarter. While the demand outlook is uncertain, G1we expect second quarter Adjusted EBITDA3to be approximately $1.2 billion and G2our current estimate for a full year Adjusted EBITDA3 is between $5.0 billion and $5.2

billion.

“Our progressive improvement together with a

strong margin performance is a clear demonstration of the strength of Smurfit Westrock in a period characterised by significant volatility.

As the global leader, with leading market positions across many of the 40 countries in which we operate, we continue to see significant

opportunity for growth, development and cost take-out. We believe that the actions we have taken, and continue to take, will translate

to superior operating and financial performance for Smurfit Westrock.”

Dividend

Smurfit Westrock plc announced today that its Board approved a quarterly

dividend of $0.4308 per share on its ordinary shares. The quarterly dividend of $0.4308 per ordinary share is payable June 18, 2025 to

shareholders of record at the close of business on May 16, 2025.

The default payment currency is U.S. Dollar for shareholders who hold

their ordinary shares through a Depository Trust Company participant. It is also U.S. Dollar for shareholders holding their ordinary shares

in registered form, unless a currency election has been registered with the Company’s Transfer Agent, Computershare Trust Company

The default payment currency for shareholders holding their ordinary

shares in the form of Depository Interests is U.S. Dollar. Such shareholders can elect to receive the dividend in Pounds Sterling or Euro

by providing their instructions to the Company’s Depositary Interest provider, Computershare Investor Services plc, by 12:00 p.m.

Earnings Call

Management will host an earnings conference call today at 7:30 AM ET

/ 12:30 PM BST to discuss Smurfit Westrock’s financial results. The conference call will be accessible through a live webcast. Interested

investors and other individuals can access the webcast, earnings release, and earnings presentation via the Company’s website at

www.smurfitwestrock.com. The webcast will be available at https://investors.smurfitwestrock.com/overview and a replay of the webcast will

be available on the website shortly after the call.

3Adjusted EBITDA is a non-GAAP

financial measure. We have not reconciled Adjusted EBITDA outlook to the most comparable GAAP outlook because it is not possible to do

so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future

events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted

with the level of precision required, we are unable to provide an outlook for the comparable GAAP measure (net income).

Forward Looking Statements

This press release includes certain “forward-looking

statements” (including within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities

Exchange Act of 1934, as amended) regarding, among other things, the plans, strategies, outcomes, outlooks, and prospects, both business

and financial, of Smurfit Westrock, the expected benefits of the completed combination of Smurfit Kappa Group plc and WestRock Company

(the “Combination”), including, but not limited to, synergies as well as our scale, geographic reach and product portfolio,

demand outlook, impact of announced closures, additional economic downtime and any other statements regarding the Company's future expectations,

beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events, outlook or performance. Statements

that are not historical facts, including statements about the beliefs and expectations of the management of the Company, are forward-looking

statements. Words such as “may”, “will”, “could”, “should”, “would”, “anticipate”, “intend”, “estimate”, “project”, “plan”, “believe”, “expect”, “target”, “prospects”, “potential”, “commit”, “forecasts”, “aims”, “considered”, “likely”, “estimate” and variations of these words and similar future or conditional

expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. While

the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only

predictions and involve known and unknown risks and uncertainties, many of which are beyond the control of the Company. By their nature,

forward-looking statements involve risk and uncertainty because they relate to events and depend upon future circumstances that may or

may not occur. Actual results may differ materially from the current expectations of the Company depending upon a number of factors affecting

its business, including risks associated with the integration and performance of the Company following the Combination. Important factors

that could cause actual results to differ materially from plans, estimates or expectations include: our ability to deliver on our closure

plan and associated efforts; our future cash payments associated with these initiatives; potential future cost savings associated with

such initiatives; the amount of charges and the timing of such charges or actions described herein; potential future impairment charges;

accuracy of assumptions associated with the charges; economic, competitive and market conditions generally, including macroeconomic uncertainty,

customer inventory rebalancing, the impact of inflation and increases in energy, raw materials, shipping, labor and capital equipment

costs; geo-economic fragmentation and protectionism such as tariffs, trade wars or similar governmental actions affecting the flows of

goods, services or currency (including the recent implementation of tariffs by the US federal government and reciprocal tariffs and other

protectionist or retaliatory measures governments in Europe, Asia, and other countries have taken or may take in response); the impact

of public health crises, such as pandemics and epidemics and any related company or governmental policies and actions to protect the health

and safety of individuals or governmental policies or actions to maintain the functioning of national or global economies and markets;

reduced supply of raw materials, energy and transportation, including from supply chain disruptions and labor shortages; developments

related to pricing cycles and volumes; intense competition; the ability of the Company to successfully recover from a disaster or other

business continuity problem due to a hurricane, flood, earthquake, terrorist attack, war, pandemic, security breach, cyber-attack, power

loss, telecommunications failure or other natural or man-made events, including the ability to function remotely during long-term disruptions;

the Company's ability to respond to changing customer preferences and to protect intellectual property; the amount and timing of the Company's

capital expenditures; risks related to international sales and operations; failures in the Company's quality control measures and systems

resulting in faulty or contaminated products; cybersecurity risks, including threats to the confidentiality, integrity and availability

of data in the Company's systems; works stoppages and other labor disputes; the Company’s ability to establish and maintain effective

internal controls over financial reporting in accordance with the Sarbanes Oxley Act of 2002, as amended, and remediate any weaknesses

in controls and processes; the Company's ability to retain or hire key personnel; risks related to sustainability matters, including climate

change and scarce resources, as well as the Company's ability to comply with changing environmental laws and regulations; the Company's

ability to successfully implement strategic transformation initiatives; results and impacts of acquisitions by the Company; the Company's

significant levels of indebtedness; the impact of the Combination on the Company's credit ratings; the potential impairment of assets

and goodwill; the availability of sufficient cash to distribute dividends to the Company's shareholders in line with current expectations;

the scope, costs, timing and impact of any restructuring of operations and corporate and tax structure; evolving legal, regulatory and

tax regimes; changes in economic, financial, political and regulatory conditions in Ireland, the United Kingdom, the United States and

elsewhere, and other factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, geopolitical

uncertainty, and conditions that may result from legislative, regulatory, trade and policy changes associated with the current or subsequent

Irish, US or UK administrations; legal proceedings instituted against the Company; actions by third parties, including government agencies;

the Company's ability to promptly and effectively integrate Smurfit Kappa's and WestRock's businesses; the Company's ability to achieve

the synergies and value creation contemplated by the Combination; the Company's ability to meet expectations regarding the accounting

and tax treatments of the Combination, including the risk that the Internal Revenue Service may assert that the Company should be treated

as a US corporation or be subject to certain unfavorable US federal income tax rules under Section 7874 of the Internal Revenue Code of

1986, as amended, as a result of the Combination; other factors such as future market conditions, currency fluctuations, the behavior

of other market participants, the actions of regulators and other factors such as changes in the political, social and regulatory framework

in which the Company's group operates or in economic or technological trends or conditions, and other risk factors included in the Company's

filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended

December 31, 2024. Neither the Company nor any of its associates or directors, officers or advisers provides any representation, assurance

or guarantee that the occurrence of the events expressed or implied in any such forward-looking statements will actually occur. You are

cautioned not to place undue reliance on these forward-looking statements. Other than in accordance with its legal or regulatory obligations

(including under the UK Listing Rules, the Disclosure Guidance and Transparency Rules, the UK Market Abuse Regulation and other applicable

regulations), the Company is under no obligation, and the Company expressly disclaims any intention or obligation, to update or revise

publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

About Smurfit Westrock

Smurfit Westrock is a leading provider of paper-based

packaging solutions in the world, with approximately 100,000 employees across 40 countries.

Contacts

Ciarán Potts

Smurfit Westrock

E: ir@smurfitwestrock.com

FTI Consulting

E: smurfitwestrock@fticonsulting.com

www.smurfitwestrock.com

Condensed Consolidated Statements of Operations (Unaudited)

(in millions, except per share data)

Three Months Ended

Net sales

$

$

Cost of goods sold

)

)

Gross profit

Selling, general and administrative expenses

)

)

Transaction and integration-related expenses associated with the Combination

)

)

Operating profit

Pension and other postretirement non-service income (expense), net

9

)

Interest expense, net

)

)

Other expense, net

(5

)

(5

)

Income before income taxes

Income tax expense

(8

)

)

Net income

Net loss attributable to noncontrolling interests

2

-

Net income attributable to common shareholders

$

$

Basic earnings per share attributable to common shareholders

$

$

Diluted earnings per share attributable to common shareholders

$

$

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

Net sales (aggregate)

North America

$

$

Europe, MEA and APAC

LATAM

Total

$

$

Less net sales (intersegment)

North America

$

$

-

Europe, MEA and APAC

6

4

LATAM

Total

$

$

Net sales (unaffiliated customers)

North America

$

$

Europe, MEA and APAC

LATAM

Total

$

$

Segment Adjusted EBITDA

North America

$

$

Europe, MEA and APAC

LATAM

Total

$

$

Adjusted EBITDA Margin

Adjusted EBITDA / Net sales (aggregate)

North America

%

%

Europe, MEA and APAC

%

%

LATAM

%

%

Condensed Consolidated Balance Sheets (Unaudited)

(in millions, except share and per share data)

Assets

Current assets:

Cash and cash equivalents (amounts related to consolidated variable interest entities

$

$

Accounts receivable, net (amounts related to consolidated variable interest entities

Inventories

Other current assets

Total current assets

Property, plant and equipment, net

Goodwill

Intangibles, net

Prepaid pension asset

Other non-current assets (amounts related to consolidated variable interest entities

Total Assets

$

$

Liabilities and Equity

Current liabilities:

Accounts payable

$

$

Accrued compensation and benefits

Current portion of debt

Other current liabilities

Total current liabilities

Non-current debt due after one year (amounts related to consolidated variable interest entities of

Deferred tax liabilities

Pension liabilities and other postretirement benefits, net of current portion

Other non-current liabilities (amounts related to consolidated variable interest entities

Total liabilities

Equity:

Preferred stock; $0.001 par value; 500,000,000 shares authorized; 10,000 shares outstanding

-

-

1

1

Deferred shares; €1 par value; 25,000 shares authorized; 25,000 shares outstanding

-

-

)

)

Capital in excess of par value

Accumulated other comprehensive loss

)

)

Retained earnings

Total shareholders' equity

Noncontrolling interests

Total equity

Total liabilities and equity

$

$

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in millions)

Three Months Ended

Operating activities:

Net income

$

$

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

Depreciation, depletion and amortization

Cash surrender value increase in excess of premiums paid

(5

)

-

Share-based compensation expense

Deferred income tax benefit

)

(2

)

Pension and other postretirement funding more than cost

)

(8

)

Other

1

1

Change in operating assets and liabilities, net of acquisitions and divestitures:

Accounts receivable

)

)

Inventories

)

8

Other assets

)

)

Accounts payable

)

)

Income taxes

)

Accrued liabilities and other

)

)

Net cash provided by operating activities

Investing activities:

Capital expenditures

)

)

Cash paid for purchase of businesses, net of cash acquired

(4

)

-

Other

5

1

Net cash used for investing activities

)

)

Financing activities:

Additions to debt

Repayments of debt

)

)

Debt issuance costs

(5

)

-

Changes in commercial paper, net

-

Other debt repayments, net

)

-

Repayments of finance lease liabilities

)

(1

)

Tax paid in connection with shares withheld from employees

)

-

Purchases of treasury stock

-

)

Cash dividends paid to shareholders

)

-

Other

1

-

Net cash provided by financing activities

-

Effect of exchange rate changes on cash and cash equivalents

)

Decrease in cash and cash equivalents

)

)

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

$

$

Non-GAAP Financial Measures and Reconciliations

Smurfit Westrock plc (“Smurfit

Westrock”) reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP").

However, management believes certain non-GAAP financial measures provide Smurfit Westrock’s Board of directors, investors, potential

investors, securities analysts and others with additional meaningful financial information that should be considered when assessing its

ongoing performance. Smurfit Westrock management also uses these non-GAAP financial measures in making financial, operating and planning

decisions, and in evaluating company performance. Non-GAAP financial measures are not intended to be considered in isolation of or as

a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should be viewed in addition

to, and not as an alternative for, the GAAP results. The non-GAAP financial measures we present may differ from similarly captioned measures

presented by other companies. Smurfit Westrock uses the non-GAAP financial measures “Adjusted EBITDA,” “Adjusted EBITDA

Margin,” and “Adjusted Free Cash Flow.” We discuss below details of the non-GAAP financial measures presented by us

and provide reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance

with GAAP.

Definitions

Smurfit Westrock

uses the non-GAAP financial measures “Adjusted EBITDA” and “Adjusted EBITDA Margin” to evaluate its overall performance.

The composition of Adjusted EBITDA is not addressed or prescribed by GAAP. Smurfit Westrock defines Adjusted EBITDA as net income before

income tax expense, 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.

Management believes

Adjusted EBITDA and Adjusted EBITDA Margin measures provide Smurfit Westrock’s management, Board of directors, investors, potential

investors, securities analysts and others with useful information to evaluate Smurfit Westrock’s performance relative to other periods

because it adjusts out non-recurring items that management believes are not indicative of the ongoing results of the business. Adjusted

EBITDA Margin is calculated as Adjusted EBITDA divided by Net Sales.

Smurfit Westrock uses the non-GAAP

financial measure “Adjusted Free Cash Flow”. Smurfit Westrock defines Adjusted Free Cash Flow as net cash provided by operating

activities as adjusted for capital expenditures and to exclude certain costs not reflective of underlying ongoing operations. Management

utilizes this measure in connection with managing Smurfit Westrock’s business and believes that Adjusted Free Cash Flow is useful

to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business,

to maintain a strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth. It should not

be inferred that the entire free cash flow amount is available for discretionary expenditures. By adjusting for certain items that are

not indicative of Smurfit Westrock’s underlying operational performance, Smurfit Westrock believes that Adjusted Free Cash Flow

also enables investors to perform meaningful comparisons between past and present periods.

Reconciliation to Most Comparable GAAP Measure

Set forth below is a reconciliation of the non-GAAP financial measures

Adjusted EBITDA and Adjusted EBITDA Margin to Net income and Net Income Margin, the most directly comparable GAAP measures, for the periods

indicated (in millions, except margins).

Three Months Ended

Net income

$

$

Income tax expense

8

Depreciation, depletion and amortization

Transaction and integration-related expenses associated with the Combination

Interest expense, net

Pension and other postretirement non-service (income) expense, net

(9

)

Share-based compensation expense

Other expense, net

5

5

Other adjustments (1)

)

Adjusted EBITDA

$

$

Net Sales

$

$

Net Income Margin

(Net Income / Net Sales)

%

%

Adjusted EBITDA Margin

(Adjusted EBITDA / Net Sales)

%

%

(1) Other adjustments for the

three months ended March 31, 2025, include restructuring costs of $15 million and losses at closed facilities of $2 million (three months

ended March 31, 2024: $- million and $- million, respectively). Other adjustments for the three months ended March 31, 2024, include a

reimbursement of a fine from the Italian Competition Authority of $18 million.

Reconciliations to Most Comparable GAAP Measure

(continued)

Set forth below is a reconciliation of the non-GAAP financial measure

Adjusted Free Cash Flow to Net cash provided by operating activities, the most directly comparable GAAP measure, for the periods indicated

(in millions).

Three Months Ended

Net cash provided by operating activities

$

$

Capital expenditures

)

)

Free Cash Flow

)

)

Adjustments:

Transaction and integration costs

Restructuring costs

3

Tax on above items

)

(1

)

Adjusted Free Cash Flow

$

)

$

)