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Smurfit Westrock plc (NYSE:SW) reported first-quarter results on Thursday that fell short of earnings expectations, even as revenue came in ahead of forecasts, sending shares down nearly 6% in premarket trading.
Adjusted earnings per share were $0.33 for the quarter ended March 31, missing the analyst consensus of $0.41 by $0.08.
Revenue reached $7.71 billion, topping the $7.58 billion estimate and rising slightly from $7.66 billion in the same period last year, representing a 0.7% year-over-year increase.
Net income dropped sharply to $63 million, compared with $382 million a year earlier. Adjusted EBITDA declined to $1.08 billion from $1.25 billion, while the margin narrowed to 14.0% from 16.4%.
Performance was weighed down by approximately $65 million in weather-related disruptions, primarily impacting operations in North America. In the region, adjusted EBITDA fell to $597 million from $785 million in the prior year, with margins declining to 13.3% from 16.8%.
“Against the backdrop of continued macro uncertainty we have delivered a solid first quarter performance, generating an Adjusted EBITDA of $1,076 million,” said President and CEO Tony Smurfit.
Looking ahead, the company expects second-quarter adjusted EBITDA to range between $1.1 billion and $1.2 billion, with the midpoint of $1.15 billion indicating a sequential improvement from the first quarter.
Smurfit Westrock reaffirmed its full-year adjusted EBITDA guidance of $5.0 billion to $5.3 billion.
The board also approved a quarterly dividend of $0.4523 per share, payable June 10 to shareholders on record as of May 15.
Separately, the company said it is reviewing its listing on the London Stock Exchange, with a decision expected in May.