Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Smurfit Westrock is exposed to market risk from changes in, among other things, interest rates, foreign currency exchange rates, and

commodity prices. See “Item 1A. Risk Factors” for additional information. Smurfit Westrock aims to identify and understand these

risks and then implement strategies to manage them. When evaluating these strategies, Smurfit Westrock evaluates the fundamentals

of each market, the Company’s sensitivity to movements in pricing, and underlying accounting and business implications. The

sensitivity analyses presented below do not consider the effect of possible adverse changes in the general economy, nor do they

consider additional actions we may take to mitigate the Company’s exposure to such changes. Smurfit Westrock may not be successful

in managing these risks.

Interest Rate Risk

Smurfit Westrock is exposed to changes in interest rates on its variable rate debt. Interest rate changes generally do not affect the

market value of such debt, but do impact the amount of interest payments and, therefore, Smurfit Westrock’s future earnings and cash

flows, assuming other factors are held constant. Smurfit Westrock had fixed an average of 88% of its interest cost on borrowings over

the following 12 months at both December 31, 2025 and 2024. Holding all other variables constant, if interest rates for variable rate

borrowings increased by 1% Smurfit Westrock’s interest expense would increase, and income before taxes would decrease, by

approximately $17 million over the following 12 months for both years. Interest income on cash balances would increase by

approximately $9 million assuming a 1% increase in interest rates earned on such balances over the following 12 months for both

years.

Foreign Exchange Risk

Smurfit Westrock manages its balance sheet having regard to the currency exposures arising from its assets being denominated in a

wide range of currencies. To this end, where foreign currency assets are funded by local borrowing, such borrowing is generally

sourced in the currency of the related assets.

Smurfit Westrock is exposed to transactional foreign exchange currency risk to the extent that there is a mismatch between the

currencies in which sales, purchases, receivables and borrowings are denominated and the respective functional currencies of the

Smurfit Westrock group companies. Smurfit Westrock hedges a portion of its currency exposure through the use of currency swaps

and forward contracts. Smurfit Westrock’s risk management policy allows the hedging of estimated foreign currency exposure in

respect of highly probable forecast sales and purchases. As such, certain subsidiaries enter into foreign currency forward contracts to

hedge highly probable forecast foreign currency sales and purchases for which hedge accounting is applied.

Smurfit Westrock operates in markets both inside and outside of the U.S. and derived 54% and 65% of net sales for the year ended

December 31, 2025 and 2024, respectively, from outside the U.S. through international operations, some of which were transacted in

U.S. dollars. The decrease in concentration from outside the U.S. was due to the full year impact of the Combination. No single

country other than the U.S. represented more than 10% of our net sales.

Although the Company is impacted by the exchange rates of a number of currencies, its largest net assets exposures for the year ended

December 31, 2025 and 2024 included the euro, the Mexican peso, the Canadian dollar, the Brazilian real, the pound sterling, and the

Colombian peso. Strengthening of the U.S. dollar exchange rate by 1% against all other foreign currencies from the December 31,

2025 rate would reduce shareholders’ equity by approximately $114 million compared to $101 million at December 31, 2024.

Commodity Price Risk

Smurfit Westrock is exposed to commodity price risks through its dependence on recovered paper, the principal raw material used in

the manufacture of recycled containerboard and virgin fiber which is the principal raw material that Smurfit Westrock uses in the

production of a portion of the Company’s containerboard, bleached paperboard and market pulp.

The price of recovered paper is dependent on both demand and supply conditions. Demand conditions include the production of

recycled containerboard in Europe and North America and the demand for recovered paper for the production of recycled

containerboard outside of Europe, principally in Asia. Supply conditions include the rate of recovery of recovered paper, itself

dependent on historical pricing related to the cost of recovery, and some slight seasonal variations. While virgin fiber prices have

generally been more stable than recycled fiber prices, they still fluctuate, particularly due to significant changes in weather, such as

during prolonged periods of heavy rain or drought, or during housing construction slowdowns or accelerations.

The cost of producing Smurfit Westrock’s products is also sensitive to the price of energy. Smurfit Westrock’s main energy exposure

is to the cost of gas and electricity. Smurfit Westrock’s energy costs increased by 45% in the year ended December 31, 2025, when

compared to the year ended December 31, 2024, which was primarily a result of 2025 being the first full year of costs after the

Combination with WestRock. Smurfit Westrock’s energy costs increased by 25% in the year ended December 31, 2024, when

compared to the year ended December 31, 2023, as a result of the Combination with WestRock, partially offset by lower energy

market prices for legacy Smurfit Kappa operations.

The objective of our commodity exposure management is to minimize volatility in earnings due to large fluctuations in the price of

commodities. To manage commodity price risk, Smurfit Westrock may enter physical commodity contracts or financial derivative

contracts to manage risks associated with fluctuating energy costs. The timeframe for such programs can be up to three years.

We have elected to apply the normal purchase normal sales (“NPNS”) scope exception, where appropriate, for physical commodity

contracts that meet the criteria of derivatives under ASC 815, “Derivatives and Hedging” (“ASC 815”). As such, Smurfit Westrock is

not required to apply derivative accounting treatment as required by ASC 815 to these physical commodity transactions.

Certain of our financial derivative contracts are designated as cash flow hedges, with changes in the fair value of these contracts being

accounted for in “Accumulated Other Comprehensive Loss” in Shareholders Equity. The resulting gain or loss is reclassified into

“Cost of goods sold” in the Consolidated Statements of Operations concurrently with the recognition of the commodity. Certain of our

financial derivative contracts do not qualify for hedge accounting but are effective economic hedges. As of December 31, 2025, the

fair value of financial derivatives contracts and the impact of a hypothetical 10% adverse move in market prices on the fair values are

immaterial.