Smurfit Westrock reported third-quarter 2026 sales of USD 8.161bn and adjusted EBITDA of USD 1.205bn, a 14.8% margin, with cost inflation and softer converting volumes weighing on results. It expects full-year 2026 adjusted EBITDA of approximately USD 4.7bn, citing about USD 700m of additional freight and energy costs, and fourth-quarter adjusted EBITDA of approximately USD 1.3bn. Price increases across paper grades are being passed through, with the full benefit expected in 2027.
Why this mattersUSD 700m of freight and energy inflation at Smurfit Westrock, with price increases fully recovered only in 2027, shows containerboard pricing trailing cost inflation into next year.
- Full-year 2026 adjusted EBITDA forecast at approximately USD 4.7bn, citing about USD 700m of additional freight and energy costs
- Q3 2026 sales USD 8.161bn, net income USD 219m, adjusted EBITDA USD 1.205bn (14.8% margin)
- Fourth-quarter 2026 adjusted EBITDA outlook approximately USD 1.3bn
- Days-adjusted corrugated volumes down 3.4% in North America and 1.8% in Latin America, up 0.4% in EMEA & APAC
- Agreed during Q3 to acquire CMPC's Chilean containerboard assets
- Quarterly dividend of USD 0.4523 per share payable 10 December 2026 to shareholders registered on 13 November
CMPC's proposed Natureza eucalyptus pulp project in Barra do Ribeiro, Brazil, has received a preliminary environmental licence from state regulator Fepam, handed over on 23 October 2026. The BRL 27bn (USD 5.0bn) development would add a new mill with design capacity of 3m tonnes a year of bleached eucalyptus kraft pulp alongside CMPC's existing Guaiba mill, plus a BRL 1.5bn (USD 280m) export terminal at Rio Grande port. The approval only establishes environmental viability; CMPC must still obtain an installation licence before construction can start.
Why this mattersA 3m-tonne greenfield line would add materially to global bleached eucalyptus kraft pulp supply, though CMPC still needs an installation licence before construction can start.
- Rio Grande do Sul regulator Fepam granted a preliminary environmental licence on 23 October 2026 for CMPC's Natureza pulp project in Barra do Ribeiro
- Project cost is estimated at BRL 27bn (USD 5.0bn), including BRL 1.5bn (USD 280m) for an export terminal at Rio Grande port
- Fepam states design capacity of 3m tonnes a year of bleached eucalyptus kraft pulp, up from the 2.5m tonnes previously cited by CMPC
- CMPC's existing Guaiba mill would continue operating alongside the new plant
- Projected employment reaches 12,000 at peak construction, falling to about 800 direct and 1,500 contractor roles in operation
- The preliminary licence confirms environmental viability only; CMPC still needs an installation licence before construction can begin
CMPC is investing more than USD 90m to modernise and automate two wood-products facilities in Chile's Biobío region. USD 72m goes to the Remanufactura Los Ángeles plant and USD 20.6m to the Aserradero Mulchén sawmill, raising capacity and the share of higher-value output. The projects are part of a two-year CMPC capital plan exceeding USD 1,000m across forestry, pulp and consumer goods.
Why this mattersThe upgrade shifts CMPC's wood output toward higher-value products, strengthening its position against regional sawmill competitors.
- CMPC is investing more than USD 90m in its Biobío region wood operations in Chile.
- USD 72m is allocated to the Remanufactura Los Ángeles plant, including about USD 33m for new automated cutting, planing, pressing, moulding, panel finishing and finger-joint equipment.
- USD 20.6m goes to the Aserradero Mulchén sawmill to modernise debarking, sawing and drying equipment.
- Mulchén capacity is set to rise from about 335,000 to 365,000 cubic metres a year.
- The investments form part of a two-year CMPC capital plan exceeding USD 1,000m covering forestry, pulp and consumer goods (Softys).
CMPC is weighing whether to proceed with Projeto Natureza, a USD 4.6bn bleached eucalyptus kraft pulp mill in Brazil, amid reports that the debt required could cost it its investment grade credit rating. Analysts cited in the reports point to alternatives such as bringing in a joint-venture partner, divesting non-core assets or scaling back the plant's initial capacity to cut the upfront outlay. The reports, dated 6 October 2026, draw on Bloomberg.
Why this mattersA downgrade would raise CMPC's borrowing costs and limit access to bond funds, a trade-off other pulp producers weigh when sizing capacity expansions.
- Projeto Natureza is a planned USD 4.6bn pulp mill in Brazil producing bleached eucalyptus kraft pulp.
- CMPC holds investment grade credit status that it risks losing if leverage rises to fund the project.
- Rating agencies are reported to be monitoring CMPC's capital allocation strategy on the project.
- Analysts cited in the reports suggest alternatives including joint-venture partners, non-core asset divestments or a reduced initial plant capacity.
- Brazilian environmental licensing (IBAMA), currency volatility and pulp price cycles are cited as execution risks.
Smurfit Westrock has agreed to buy CMPC's Chilean containerboard and corrugated business for USD 420m, a post-synergy multiple of less than 6 times adjusted EBITDA. The assets are a recycled containerboard mill in Santiago with a paper machine of about 250,000 tonnes a year, a fibre collection network, three corrugated plants and one moulded tray facility. Completion is expected in the first half of 2027, subject to customary conditions including regulatory approvals, and will be funded from Smurfit Westrock's own liquid resources.
Why this mattersSmurfit Westrock says the purchase gives it the leading Chilean containerboard and corrugated position, and it links fibre flows with Argentina, Peru, Ecuador and Brazil.
- Consideration is USD 420m, a post-synergy transaction multiple of less than 6 times adjusted EBITDA.
- Assets comprise one recycled containerboard mill in Santiago with a fibre collection centre network, three corrugated plants and one moulded tray facility.
- The Santiago paper machine produces approximately 250,000 tonnes per year.
- Smurfit Westrock intends to fund the transaction from its own liquid resources.
- Completion is expected in the first half of 2027, subject to customary closing conditions including regulatory approvals.
- The acquired mill is intended to feed recycled paper into Smurfit Westrock's Argentina, Peru and Ecuador operations and take kraftliner from Brazil and North America.
- The acquired units are named Envases Impresos Cordillera and Chilena de Moldeados (Chimolsa)
- Corrugated plants are located at Buin, Til Til and Osorno, alongside the Puente Alto paper mill
- The business employs about 1,500 people and operates a 12-site paper and cardboard recovery network
- Completion requires approval from Chile's National Economic Prosecutor's Office
CMPC is investing USD 29.6m to modernise and expand its Powell Valley Millwork plants in Jeffersonville and Clay City, Kentucky, aiming to nearly double production. The project is 65% complete and is scheduled to start up by late 2027, with Clay City specialising in poplar processing and Jeffersonville in pine.
Why this mattersThe expansion deepens CMPC's push into US value-added wood remanufacturing, linking its Chilean pine supply to local finishing capacity for a market that takes about 90% of the unit's sales.
- Investment totals USD 29.6m across two Powell Valley Millwork plants in Kentucky.
- Project is 65% complete, with start-up expected by end of 2027.
- Expansion aims to nearly double Powell Valley's output and raise productivity by almost 70%.
- Clay City will be specialised for poplar processing, adding capacity for mouldings and glued panels.
- Jeffersonville will boost pine processing and finishing capacity, able to use up to 30,000 m3 of pine from CMPC's Chilean forests.
- CMPC acquired the Powell Valley operation in 2023 to enter the US remanufacturing market, which represents about 90% of the unit's sales.
Chilean pulp producer CMPC has obtained final authorization to build a private-use port terminal in Rio Grande do Sul, Brazil, with projected investment of 1.5 billion reais (US$300 million). The terminal, to be built and operated through a joint venture between CMPC and Neltume Ports via the entity Terminal Rio Grande do Sul S.A., is part of CMPC's wider Natureza Project, which also includes a new pulp mill at Barra do Ribeiro with total investment exceeding 27 billion reais.
Why this mattersThe dedicated terminal secures export capacity for CMPC's new Brazilian pulp mill, underpinning one of the region's largest forestry-sector capital projects.
- Projected terminal investment is 1.5 billion reais (US$300 million).
- Assignment contract for the project area was signed between Brazil's Ministry of Management and Innovation in Public Services and Terminal Rio Grande do Sul S.A.
- An earlier adhesion contract for the port facility's operation was signed in January 2026 with the Ministry of Ports and Airports and Antaq.
- The terminal is part of CMPC's Natureza Project, which also includes a new pulp mill in Barra do Ribeiro with total investment exceeding 27 billion reais.
- The design includes two ship berths, two barge berths and a warehouse with static capacity of 194,000 tonnes of cellulose.
- Handling capacity is expected to reach around 5 million tonnes of cellulose per year.
- The 25-year federal land concession was signed on 11 September 2026, with a renewal option
- The terminal's planned capacity is now cited at up to 9m tonnes a year, up from the previously reported 5m tonnes
- The terminal will cover 400,000 square metres
- Construction is expected to create about 1,200 jobs, with 450 permanent roles once operating
CMPC has warned it may move its planned USD 5.26bn (BRL 27bn) Nature Project pulp mill from Barra do Ribeiro in Rio Grande do Sul to Paraguay unless it obtains an environmental licence by the end of 2026. The 2.5 million tonne-a-year eucalyptus pulp plant is stalled after Brazilian federal prosecutors challenged the licensing process over consultation with indigenous and traditional communities. CMPC has spent USD 400m on development and studies without starting construction.
Why this mattersA relocation would hand Paraguay a major eucalyptus pulp project and signal that Brazilian licensing delays now weigh as heavily as cost or wood supply in forestry investment decisions.
- CMPC's Brazil general director Antonio Lacerda said an environmental licence is needed by December 2026, or the project slips two to three years and could move to Paraguay.
- The plant would produce 2.5 million tonnes of eucalyptus pulp a year at Barra do Ribeiro, Rio Grande do Sul.
- Project value is put at USD 5.26bn (BRL 27bn), described as the largest private investment in the state's history, with 12,000 jobs.
- CMPC has committed USD 400m to development and studies without building any of the plant.
- Federal prosecutors filed a public civil action on 13 May 2026, arguing the Fepam licensing lacked free, prior and informed consultation with artisanal fishing, Guarani Mbya and quilombola communities under ILO Convention 169.
- The original schedule foresaw construction starting in 2026 and commercial operation in August 2029, with a dedicated terminal at the Port of Rio Grande valued at about USD 584m (BRL 3bn).
