A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Smurfit Westrock reported Q2 FY2026 net sales of $8.03B, up 1.1% YoY, and returned to profitability with a net income of $89M, driven by favorable foreign currency effects and reduced restructuring costs despite freight and energy cost pressures.
Revenue
$8.03B
+1.15% YoY
EPS (Diluted)
$0.17
+440.00% YoY
Gross Margin
17.4%
-1.7 pts YoY
Operating Income
$309M
+23.11% YoY
Filed · Source: SEC EDGAR 10-Q filing
Smurfit Westrock (SW) reported Q2 FY2026 revenue of $8.03B, up 1.1% year over year. The company posted net income of $89M, with diluted EPS of $0.17. Gross margin was 17.4%. Operating income was $309M, up 23.1% year over year. SW's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
SW delivered revenue of $8.03B (+1.1% YoY) and net income of $89M in Q2 FY2026, benefiting from foreign currency tailwinds and lower restructuring expenses.
Last 4 quarters: 0 beats, 4 misses
Adjusted (non-GAAP) EPS of $0.35 versus the $0.44 analyst consensus — a -19.8% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.17.
Net sales in Q2 FY2026 grew 1.1% YoY to $8,031M from $7,940M, primarily due to a positive foreign currency translation impact of $146M, which offset a $60M decrease from a lower selling price mix.
Source: 10-Q Item 2 MD&A, p.34
North America segment Adjusted EBITDA fell 6.4% YoY to $704M due to $61M in higher freight costs, whereas Europe, MEA and APAC segment Adjusted EBITDA increased 2.2% YoY to $380M aided by $58M in lower raw material costs.
Source: 10-Q Item 2 MD&A, p.37-38
Impairment and restructuring costs declined by $161M to $119M in Q2 FY2026 compared to $280M in the prior year quarter, supporting operating income expansion to $309M.
Source: 10-Q Item 2 MD&A, p.35
As of June 30, 2026, Smurfit Westrock held $5,239M in total available liquidity, consisting of $677M in cash and cash equivalents and $4,562M in undrawn committed borrowing facilities.
Source: 10-Q Item 2 MD&A, p.39
Cost of goods sold was negatively impacted in Q2 FY2026 by $90M of higher freight costs and $22M of increased energy costs. Persistent pressure on transportation and utility prices could compress future operating margins.
Source: 10-Q Item 2 MD&A, p.35
The company holds $14,164M in total debt against $677M in cash, resulting in a Debt to Equity ratio of 1.50 and net interest expenses of $179M for the quarter, which limits financial flexibility.
Source: 10-Q Balance Sheet (XBRL)
Operating globally, performance is significantly subject to FX movements, as shown by the $146M revenue uplift from currency tailwinds in Q2 FY2026 that could reverse in future periods.
Source: 10-Q Item 2 MD&A, p.34
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the SW earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $8.03B | $7.94B | +1.15% |
Cost of Revenue | $6.63B | $6.42B | +3.22% |
Gross Profit | $1.4B | $1.51B | -7.66% |
Operating Income | $309M | $251M | +23.11% |
Net Income | $89M | -$28M | +417.86% |
EPS (Basic) | $0.17 | -$0.05 | +440.00% |
EPS (Diluted) | $0.17 | -$0.05 | +440.00% |
SG&A Expense | $970M | $963M | +0.73% |
Smurfit Westrock generated net sales of $8.031B in Q2 FY2026, up 1.1% year-over-year, and net income of $89M ($0.17 per diluted share). Operating profit reached $309M, up 23.1% YoY, supported by reduced restructuring charges.
Foreign currency translation provided a positive net impact of $146M on net sales during Q2 FY2026. However, it also increased cost of goods sold by $102M, resulting in a net favorable impact on overall revenue growth.
As of Q2 FY2026, Smurfit Westrock held $677M in cash and cash equivalents and had total debt of $14.164B. The company maintained strong liquidity of $5.239B, including $4.562B in undrawn committed credit lines.
Expected release date, analyst estimates & what to watch
SW reported a sharp earnings decline in Q1 2026, with net income falling 83.1% year-over-year to $65M on flat revenue of $7.71B, driven by a significant rise in cost of revenue that compressed gross margin by ~420 basis points.
SW (Sherwin-Williams) delivered strong FY2025 results with revenue surging 47.7% to $31.2B and net income more than doubling to $699M, driven by robust operating leverage and a 128.7% jump in operating cash flow to $3.4B.
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