Smurfit Westrock plc is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: 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.
Drawn from management commentary in the Q1 2026 10-Q:
Revenue grew only 0.7% YoY to $7.71B (from $7.66B), indicating limited top-line momentum while cost of revenue surged 6.0% to $6.44B, suggesting significant input cost inflation or mix shift toward lower-margin business.
Gross margin fell from 20.6% to 16.4%, a decline of approximately 420 basis points YoY, reflecting the mismatch between flat revenue growth and rising costs of revenue — a key driver of the overall earnings deterioration.
Operating income dropped from $553M to $253M, a 54.2% decline, as the gross profit shortfall of ~$309M was only partially offset by a modest $12M reduction in SG&A expenses to $961M.
Revenue
$7.71B
++0.73% YoY
EPS (Basic)
$0.12
-83.78% YoY
Gross Margin
16.4%
-4.16% YoY
Operating Income
$253M
-54.25% YoY
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