Smurfit Westrock Q3 2026: Freight and Energy Costs Blow a $700M Hole in Earnings
As seen on the 24/7 Wall St. homepage on October 28, 2026.
Freight and energy inflation running above plan forced a cut to full-year adjusted EBITDA guidance to roughly $4.7 billion. Both EPS and revenue missed expectations, and pricing actions already taken across most paper grades will not fully show up until 2027.
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Smurfit Westrock reported adjusted EPS of $0.45 for the third quarter, missing expectations, with revenue of $8.16 billion also falling short.
Freight and energy are the problem: full-year 2026 costs in those two categories are now expected to run approximately $700 million above original projections, compressing adjusted EBITDA.
The company has raised prices across most paper grades, but CEO Tony Smurfit said the full benefit is not expected until 2027. Investors absorb the cost pain now and wait a year for relief.
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Full-year 2026 adjusted EBITDA guidance has been trimmed to approximately $4.7 billion, even as North America remains sold out in all containerboard grades. A deal to acquire CMPC's containerboard assets in Chile shows management still investing through the squeeze.
Q3 2026 continues a pattern of reported EPS missing expectations that stretches back to Q4 2024, with only Q1 2025 as an exception. Cost inflation keeps the earnings trajectory capped until pricing flows through in 2027.
Mentioned: SW