Financial Analysis

14. Commitments and Contingencies Brazil Tax Liability Our subsidiary, WestRock, is challenging claims by the Brazil Federal Revenue Department that we underpaid taxes as a result of amortization of goodwill generated by the 2002 merger of two of its Brazilian subsidiaries. The matter has proceeded through the Brazil Administrative Council of Tax Appeals (CARF) principally in two proceedings, covering tax years 2003 to 2008 and 2009 to 2012. WestRock was assessed additional taxes, penalties, and interest in both CARF proceedings. In the proceeding for the tax years 2003 to 2008, WestRock was also assessed penalties and interest for fraud, but WestRock won the fraud claim in the proceeding for the tax years 2009 to 2012. WestRock subsequently filed two lawsuits in Brazilian federal courts seeking annulment of the adverse CARF decisions. In February 2025, the federal court adjudicating the WestRock challenge to CARF's decision against WestRock for the 2003 and 2008 period issued a ruling in favor of WestRock nullifying the financial assessments in that case. The decision of the federal court was appealed by the tax authorities. We assert that we have no liability in these matters. The total amount in dispute in the two cases before CARF and in the annulment actions relating to the claimed tax deficiency was R$810 million ( $156 million ) as of June 30, 2026 , including various penalties and interest. Resolution of the tax positions could have a material adverse effect on our ca …

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10. Debt The following were individual components of debt: June 30, December 31, 2026 2025 $600 million senior notes due 2028 $ 600 $ 600 $500 million senior notes due 2028 500 500 $750 million senior notes due 2029 750 750 500 million senior green notes due 2029 571 587 230 million receivables securitization due 2029 251 257 100 million receivables securitization due 2029 114 117 $400 million senior notes due 2030 400 400 $750 million senior green notes due 2030 750 750 $300 million senior notes due 2031 300 300 $600 million receivables securitization due 2031 550 550 500 million senior green notes due 2031 571 587 $500 million senior notes due 2032 500 500 $76 million senior notes due 2032 76 76 600 million senior green notes due 2032 685 704 $600 million senior notes due 2033 600 600 500 million senior green notes due 2033 571 587 $1,000 million senior green notes due 2034 1,000 1,000 $850 million senior green notes due 2035 850 850 $800 million senior green notes due 2036 800 800 600 million senior green notes due 2036 685 704 $3 million senior notes due 2037 3 3 $150 million senior notes due 2047 150 150 $1,000 million senior green notes due 2054 1,000 1,000 Commercial paper 601 155 Vendor financing and commercial card programs 107 99 Farm credit facility 600 600 Other bank loans 122 93 Finance lease obligations 543 548 Total debt, excluding fair value adjustments, bond discounts and debt issuance costs 14,250 13,867 Unamortized fair value adjustments, bond discounts and …

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9. Fair Value Measurement The carrying values, net of deferred debt issuance costs, and estimated fair values of debt with fixed interest rates (classified as Level 2 in the fair value hierarchy) were as follows: June 30, 2026 December 31, 2025 Book Value Fair Value Book Value Fair Value Debt with fixed interest rates $ 11,413 $ 11,401 $ 11,492 $ 11,616 The fair value of the Company's debt with fixed interest rates is based on quoted market prices. With the exception of debt with fixed interest rates, the carrying amounts of all other debt instruments approximate their fair values. The variable nature and repricing dates of the receivables securitization facilities and the revolving credit facility result in carrying values approximating their fair values. Both the revolving credit facility and the receivables securitization facilities are classified as Level 2 in the fair value hierarchy. Accounts Receivable Monetization Agreements The following table presents a summary of the accounts receivable monetization agreements for the six months ended June 30, 2026 and June 30, 2025 : Six months ended June 30, 2026 2025 Receivablefromfinancialinstitutionsat January 1 $ $ Receivables sold to the financial institutions and derecognized (1,123) (1,323) Receivables collected by financial institutions 1,146 1,335 Cash payments to financial institutions (23) (12) Receivablefromfinancialinstitutionsat June 30 $ $ Receivables sold under these accounts receivable monetization agreements as …

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11. Income Taxes The effective tax rate for the three and six months ended June 30, 2026 was 31.3% and 28.8% , respectively. For the three months ended June 30, 2026 , the effective tax rate was primarily impacted by (i) the increase of $6 million of accrued interest and penalties associated with the unrecognized tax benefits, (ii) the geographical mix of where earnings are generated, (iii) losses during the period that have not been recognized due to uncertainty regarding their future realization , and (iv) certain non- deductible expenses and other non-recurring items. For the six months ended June 30, 2026 , the effective tax rate was primarily impacted by (i) the tax benefit associated with the release of $7 million of unrecognized tax benefits, (ii) the increase of $12 million of accrued interest and penalties associated with the unrecognized tax benefits, (iii) tax benefit associated with a non-recurring adjustment to certain deferred tax assets of $11 million , (iv) the geographical mix of where earnings are generated, (v) losses during the period that have not been recognized due to uncertainty regarding their future realization, and (vi) certain non-deductible expenses and other non-recurring items. The effective tax rate for the three and six months ended June 30, 2025 was 144.8% and 20.5% , respectively. For the three months ended June 30, 2025 , the effective tax rate was primarily impacted by (i) tax expense associated with an increase in unrecognized tax benefit …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

1.4. New Accounting Standards Recently Adopted During the six months ended June 30, 2026 there were no newly issued or newly applicable accounting pronouncements adopted that had, or are expected to have, a material impact on the Condensed Consolidated Financial Statements. 1.5. New Accounting Standards Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). This ASU requires new financial statement disclosures disaggregating prescribed expense categories within relevant income statement expense captions. ASU 2024-03 will be effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Adoption is either with a prospective method or a retrospective method of transition. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its disclosures in the consolidated financial statements. …

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12. Retirement Plans and Deferred Compensation Arrangements The net periodic benefit (income) cost recognized in the Condensed Consolidated Statements of Operations includes the following: Defined Benefit Pension Plans U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 2026 2025 2026 2025 Service cost $ 5 $ 5 $ 9 $ 9 $ 10 $ 10 $ 18 $ 18 Interest cost 51 52 39 36 101 104 78 70 Expected return on assets (72) (68) (37) (37) (143) (136) (74) (72) Amortization of: Net actuarial loss 8 8 17 16 Prior service credit (1) Curtailment gain (1) (1) Settlement loss 1 1 Net periodic benefit (income) cost $ (16) $ (11) $ 19 $ 16 $ (32) $ (22) $ 39 $ 31 Service cost is included within Cost of goods sold and Selling, general and administrative expenses while all other components are recorded within Pension and other postretirement non-service income, net . Pension Plan Contributions and Benefit Payments There were no changes in the period in connection to the funding standards and funding requirements for our qualified and approved pension plans. The contributions paid and expected to be paid during the current fiscal year are not significantly different from the amounts as disclosed in Note 19. Retirement Plans and Deferred Compensation Arrangements of the 2025 Consolidated Financial Statements. Deferred Compensation Arrangements We have financial assets related to supplemental retirement savings plans (Supplemental P …

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3. Revenue Recognition Disaggregated Revenue The following tables summarize our disaggregated revenue with unaffiliated customers by product type and segment for the three and six months ended June 30, 2026 and 2025 . Net sales are attributed to segments based on the location of production. Three months ended June 30, 2026 North America Europe, MEA and APAC LATAM Total Revenue by product: Paper $ 1,156 $ 386 $ 43 $ 1,585 Packaging 3,500 2,430 516 6,446 Total $ 4,656 $ 2,816 $ 559 $ 8,031 Three months ended June 30, 2025 North America Europe, MEA and APAC LATAM Total Revenue by product: Paper $ 1,092 $ 374 $ 50 $ 1,516 Packaging 3,560 2,399 465 6,424 Total $ 4,652 $ 2,773 $ 515 $ 7,940 Six months ended June 30, 2026 North America Europe, MEA and APAC LATAM Total Revenue by product: Paper $ 2,235 $ 776 $ 86 $ 3,097 Packaging 6,828 4,805 1,013 12,646 Total $ 9,063 $ 5,581 $ 1,099 $ 15,743 Six months ended June 30, 2025 North America Europe, MEA and APAC LATAM Total Revenue by product: Paper $ 2,218 $ 784 $ 96 $ 3,098 Packaging 7,012 4,565 921 12,498 Total $ 9,230 $ 5,349 $ 1,017 $ 15,596 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 da …

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2. Segment Information We report our financial results of operations in the following three reportable segments: 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 the Caribbean, Argentina, Brazil, Chile, Colombia, Ecuador and Peru. 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, net , share-based compensation expense , other expense, net , impairment and restructuring costs , transaction and integration-related expenses associated with the Combination and other specific items that management believes are not indicative of the ongoing operating results of the business. The following tables show selected financial data for our segments. Total assets by segment are not disclosed as this information is not regularly provided to the Companys chief operating decision maker (CODM). Three months ended June 30, 2026 North America Europe, MEA and APAC LATAM Total Net sales (unaffiliated customers) $ 4,656 $ 2,816 $ 559 $ 8,031 Add net sales (intersegment) 87 10 97 Net sales (aggregate) 4,743 2,826 559 8,128 Less segment expenses: Segment cost of goods sold (3,596) (2,114) (388) Segment selling, general and administrat …

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18. Subsequent Events Dividend Approval On July 29, 2026, the Company announced that its Board of Directors approved a quarterly dividend of $0.4523 per share on its ordinary shares. The quarterly dividend of $0.4523 per ordinary share is payable on September 10, 2026 to shareholders of record at the close of business on August 14, 2026.

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