Smurfit Westrock plcSW
Smurfit Westrock plc Segments Disclosure
3. Segment Information
The chief operating decision maker (“CODM”) is determined to be the executive management team, comprising the Group Chief
Executive Officer and Group Chief Financial Officer. The CODM is responsible for assessing performance, allocating resources and
making strategic decisions.
We have identified three operating segments, which are also our reportable segments, as follows:
i.North America, which includes operations in the U.S., Canada and Mexico.
ii.Europe, the Middle East and Africa (“MEA”) and Asia-Pacific (“APAC”).
iii.Latin America (“LATAM”), which includes operations in Central America and Caribbean, Argentina, Brazil, Chile, Colombia,
Ecuador and Peru.
Our operating segments are consistent with our internal management structure and no operating segments have been aggregated for
disclosure purposes.
In the identification of the operating and reportable segments, we considered the level of integration of our different businesses as well
as our objective to develop long-term customer relationships by providing customers with differentiated packaging solutions that
enhance the customer’s prospects of success in their end markets.
The North America, Europe, MEA and APAC and LATAM segments are each highly integrated within the segment and there are
many interdependencies within these operations. They each include a system of mills and plants that primarily produce a number of
grades of containerboard that is converted into corrugated containers within each segment, or is sold to third parties.
In addition, the North America segment also produces paperboard, kraft paper and market pulp; other paper-based packaging, such as
folding cartons, inserts, labels and displays and also engages in the assembly of displays as well as the distribution of packaging
products.
The Europe, MEA and APAC segment also produces other types of paper, such as solidboard, graphic board, sack kraft paper and
machine glazed paper (together known as kraft paper) and graphic paper; and other paper-based packaging, such as honeycomb,
solidboard packaging, folding cartons, inserts and labels; and bag-in-box packaging (the latter with operations located in Europe,
Argentina, Canada, Mexico and the U.S., but managed under the Europe, MEA and APAC segment).
The LATAM segment also comprises forestry; other types of paper, such as paperboard and kraft paper; and paper-based packaging,
such as folding cartons and paper sacks.
Inter-segment transfers or transactions are entered into under normal commercial terms and conditions on an arm’s length basis.
The accounting policies of the reportable segments are the same as those described in “Note 1. Description of Business and Summary
of Significant Accounting Policies.”
We operate in 40 countries worldwide. The table below reflects financial data of our operations for each of the past three years:
Years ended December 31, | |||||
2025 | 2024 | 2023 | |||
Net sales (unaffiliated customers) | |||||
Ireland (country of domicile) | $226 | $172 | $128 | ||
U.S. | 14,467 | 7,311 | 303 | ||
Mexico | 2,521 | 1,960 | 1,343 | ||
Germany | 1,873 | 1,711 | 1,694 | ||
France | 1,546 | 1,427 | 1,492 | ||
Other Americas | 3,381 | 2,330 | 1,322 | ||
Other Europe, MEA and APAC | 7,165 | 6,198 | 5,811 | ||
Total | $31,179 | $21,109 | $12,093 | ||
Our net sales are derived almost entirely from the sale of goods and are disclosed based on the location of production.
No one customer represents greater than 10% of our net sales.
December 31, | |||
2025 | 2024 | ||
Long-lived assets(1) | |||
Ireland (country of domicile) | $113 | $62 | |
U.S. | 14,224 | 14,841 | |
Other Americas | 4,482 | 4,013 | |
Other Europe, MEA and APAC | 5,464 | 4,745 | |
Total | $24,283 | $23,661 | |
(1) Long-lived assets include “Operating lease right-of-use assets” and “Property, plant and equipment, net” and are disclosed based on their location.
Segment profitability is measured based on Adjusted EBITDA, defined as income before income taxes, unallocated corporate costs,
depreciation, depletion and amortization, interest expense, net, pension and other postretirement non-service income (expense), net,
share-based compensation expense, other expense, net, impairment and restructuring costs, transaction and integration-related
expenses associated with the Combination, amortization of fair value step up on inventory and other specific items that management
believes are not indicative of the ongoing operating results of the business.
The CODM uses Adjusted EBITDA for each segment predominantly: to forecast and assess the performance of the segments,
individually and comparatively; to set pricing strategies for the segments; and to make decisions about the allocation of operating and
capital resources to each segment strategically, in the annual budget and in the quarterly forecasting process. The CODM considers
budget, or forecast, -to-actual variances on a quarterly and annual basis for segment Adjusted EBITDA to inform these decisions.
Significant segment expenses are segment cost of goods sold and segment selling, general and administrative expenses. Segment cost
of goods sold primarily include raw materials, direct labor and plant overhead costs. Segment selling, general and administrative
expenses primarily include compensation and benefits, external professional fees and other operating costs. Both segment cost of
goods sold and segment selling, general and administrative expenses exclude certain adjustments that management believes are not
indicative of the operating results of the business.
The following tables show selected financial data for our segments:
Year ended December 31, 2025 | North America | Europe, MEA and APAC | LATAM | Total | |||
Net sales (unaffiliated customers) | $18,220 | $10,860 | $2,099 | $31,179 | |||
Add net sales (intersegment) | 357 | 33 | 14 | 404 | |||
Net sales (aggregate) | 18,577 | 10,893 | 2,113 | 31,583 | |||
Less segment expenses: | |||||||
Segment cost of goods sold | (13,711) | (8,009) | (1,463) | ||||
Segment selling, general and administrative expenses | (1,868) | (1,266) | (165) | ||||
(15,579) | (9,275) | (1,628) | (26,482) | ||||
Segment Adjusted EBITDA | $2,998 | $1,618 | $485 | $5,101 | |||
Unallocated corporate costs | (162) | ||||||
Depreciation, depletion and amortization | (2,550) | ||||||
Impairment and restructuring costs | (385) | ||||||
Transaction and integration-related expenses associated with the Combination | (120) | ||||||
Interest expense, net | (729) | ||||||
Pension and other postretirement non-service income, net | 30 | ||||||
Share-based compensation expense | (139) | ||||||
Other expense, net | (61) | ||||||
Other adjustments | (26) | ||||||
Income before income taxes | $959 |
Other adjustments in the table above include losses at closed facilities of $26 million.
Year ended December 31, 2024 | North America | Europe, MEA and APAC | LATAM | Total | |||
Net sales (unaffiliated customers) | $9,901 | $9,556 | $1,652 | $21,109 | |||
Add net sales (intersegment) | 191 | 21 | 59 | 271 | |||
Net sales (aggregate) | 10,092 | 9,577 | 1,711 | 21,380 | |||
Less segment expenses: | |||||||
Segment cost of goods sold | (7,450) | (6,948) | (1,192) | ||||
Segment selling, general and administrative expenses | (1,032) | (1,100) | (141) | ||||
(8,482) | (8,048) | (1,333) | (17,863) | ||||
Segment Adjusted EBITDA | $1,610 | $1,529 | $378 | $3,517 | |||
Unallocated corporate costs | (131) | ||||||
Depreciation, depletion and amortization | (1,464) | ||||||
Impairment and restructuring costs | (56) | ||||||
Transaction and integration-related expenses associated with the Combination | (395) | ||||||
Amortization of fair value step up on inventory | (224) | ||||||
Interest expense, net | (398) | ||||||
Pension and other postretirement non-service expense, net | (24) | ||||||
Share-based compensation expense | (206) | ||||||
Other expense, net | (25) | ||||||
Other adjustments | (34) | ||||||
Income before income taxes | $560 |
Other adjustments in the table above include a non-recurring, non-cash currency translation adjustment in Argentina of $42 million
and losses at closed facilities of $10 million partially offset by a reimbursement of a fine from the Italian Competition Authority of
$18 million.
Year ended December 31, 2023 | North America | Europe, MEA and APAC | LATAM | Total | |||
Net sales (unaffiliated customers) | $1,623 | $9,184 | $1,286 | $12,093 | |||
Add net sales (intersegment) | 1 | 9 | 58 | 68 | |||
Net sales (aggregate) | 1,624 | 9,193 | 1,344 | 12,161 | |||
Less segment expenses: | |||||||
Segment cost of goods sold | (1,165) | (6,498) | (939) | ||||
Segment selling, general and administrative expenses | (178) | (1,011) | (131) | ||||
(1,343) | (7,509) | (1,070) | (9,922) | ||||
Segment Adjusted EBITDA | $281 | $1,684 | $274 | $2,239 | |||
Unallocated corporate costs | (111) | ||||||
Depreciation, depletion and amortization | (580) | ||||||
Impairment and restructuring costs | (32) | ||||||
Transaction and integration-related expenses associated with the Combination | (78) | ||||||
Interest expense, net | (139) | ||||||
Pension and other postretirement non-service expense, net | (49) | ||||||
Share-based compensation expense | (66) | ||||||
Other expense, net | (46) | ||||||
Income before income taxes | $1,138 |
Years ended December 31, | |||||
2025 | 2024 | 2023 | |||
Capital expenditures: | |||||
North America | $1,224 | $723 | $135 | ||
Europe, MEA and APAC | 723 | 503 | 594 | ||
LATAM | 208 | 216 | 194 | ||
Total per reportable segments | 2,155 | 1,442 | 923 | ||
Corporate | 37 | 24 | 6 | ||
Total capital expenditures | $2,192 | $1,466 | $929 | ||
December 31, | |||
2025 | 2024 | ||
Assets: | |||
North America | $28,597 | $29,078 | |
Europe, MEA and APAC | 12,238 | 10,723 | |
LATAM | 3,652 | 3,180 | |
Total reportable segments | 44,487 | 42,981 | |
Corporate(1) | 670 | 778 | |
Total assets | $45,157 | $43,759 | |
(1) Corporate assets are composed primarily of Cash and cash equivalents and Recoverable or refundable income taxes.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.