1) Q1 Performance Overview
- Adjusted EBITDA for Q1 2026 was $1,076 million, with a margin of 14%.
- Performance was impacted by weather events costing approximately $65 million.
- North America adjusted EBITDA was $597 million (13.3% margin), affected by $55 million in weather-related costs and $74 million in downtime.
- EMEA and APAC delivered $421 million in adjusted EBITDA (15.2% margin), outperforming peers due to strong innovation.
- Latin America reported $109 million in adjusted EBITDA with a margin exceeding 20%.

2) Strategic Initiatives and Market Position
- The company is focused on a medium-term plan aiming for $7 billion in adjusted EBITDA and a 19% margin by 2030.
- Significant customer wins with over 600 new corrugated customers in Q1, indicating strong demand recovery.
- The integration of Smurfit and Westrock is progressing well, enhancing operational capabilities and innovation.
- The company is leveraging its global scale to optimize operations and enhance customer service.

3) Challenges and Headwinds
- Weather events and unplanned downtime negatively impacted Q1 results, but demand is improving moving into Q2.
- The company anticipates higher energy costs in upcoming quarters due to hedging policies.
- Consultations are underway for the closure of four smaller converting operations and one paper mill in the U.K., affecting capacity.
- The North American market faces logistical challenges and muted consumer confidence, although demand is strengthening.

4) Operational and Product Plans
- The company is implementing price increases across containerboard grades and some consumer products to offset rising costs.
- Continued investment in growth projects and cost optimization initiatives is planned, particularly in North America.
- The focus remains on enhancing the performance of underperforming box plants, with a goal to reduce loss-making facilities significantly.
- The company is expanding its innovation centers to support customer needs and sustainability efforts.

5) Guidance and Outlook
- For Q2 2026, adjusted EBITDA is expected to be between $1.1 billion and $1.2 billion.
- Full-year adjusted EBITDA guidance remains between $5 billion and $5.3 billion.
- The company is cautiously optimistic about demand recovery, with expectations for improved performance in the latter half of the year.
- The transcript lacks specific figures on the impact of energy price increases and the full effects of the announced price hikes.

Bottom line: Smurfit Westrock is navigating a challenging environment but shows signs of recovery and growth potential, particularly through strategic customer acquisitions and innovation. The company remains focused on optimizing operations and enhancing margins, making it a potentially attractive investment for shareholders.