4. Revenue Recognition

Disaggregated Revenue

ASC 606 requires that we disaggregate revenue from contracts with customers into categories that depict how the nature, amount,

timing and uncertainty of revenue and cash flows are affected by economic factors.

The following tables summarize our disaggregated revenue with unaffiliated customers by product type and segment for the years

ended December 31, 2025, 2024 and 2023. Net sales are attributed to segments based on the location of production.


	Year ended December 31, 2025
	North America	Europe, MEA and APAC	LATAM	Total
Revenue by product:
Paper	$4,386	$1,552	$192	$6,130
Packaging	13,834	9,308	1,907	25,049
Total	$18,220	$10,860	$2,099	$31,179


	Year ended December 31, 2024
	North America	Europe, MEA and APAC	LATAM	Total
Revenue by product:
Paper	$2,271	$1,468	$117	$3,856
Packaging	7,630	8,088	1,535	17,253
Total	$9,901	$9,556	$1,652	$21,109


	Year ended December 31, 2023
	North America	Europe, MEA and APAC	LATAM	Total
Revenue by product:
Paper	$106	$1,380	$53	$1,539
Packaging	1,517	7,804	1,233	10,554
Total	$1,623	$9,184	$1,286	$12,093

Packaging revenue is derived mainly from the sale of corrugated and consumer packaging products. The remainder of packaging

revenue is composed of bag-in-box, packaging solutions and other paper-based packaging products.

Revenue Contract Balances

Contract assets relate to the manufacture of certain products that have no alternative use to us, with right to payment for performance

completed to date on these products, including a reasonable profit. Contract assets are reduced when the customer takes title to the

goods and assumes the risks and rewards for the goods. Contract liabilities represent obligations to transfer goods or services to a

customer for which we have received consideration and are reduced once control of the goods is transferred to the customer.

On the Consolidated Balance Sheets, contract assets reported within “Other current assets” were $170 million and $197 million at

December 31, 2025 and December 31, 2024, respectively, and contract liabilities reported within “Other current liabilities” were

$6 million and $5 million at December 31, 2025 and December 31, 2024, respectively.

Historical Timeline

Fiscal Year	Filed
2025	Feb 27, 2026	Showing above
2024	Mar 7, 2025

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Smurfit Westrock plc Revenue Disclosure

Historical Timeline

About Revenue Disclosures

Other Available Disclosures