What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Smurfit Westrock (SW) revenue becomes net income?

For TTM through Q1 2026, Smurfit Westrock turned $30.2B of revenue into $371M of net income — a net margin of 1.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Smurfit Westrock (SW) gross, operating, and net margins?

For TTM through Q1 2026, Smurfit Westrock reported a gross margin of 18.4%, an operating margin of 6.2%, and a net margin of 1.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Smurfit Westrock (SW) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Smurfit Westrock (SW) Income Statement Waterfall

Revenue

$30.2B

Gross Margin

+18.4%

Operating Margin

+6.2%

Net Margin

+1.2%

Income statement waterfall for Smurfit Westrock (SW) — TTM through Q1 2026

Net income: $371M

Margin breakdown for Smurfit Westrock (SW) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$30.2B	$30.2B
Cost of Revenue	-$24.7B	$5.57B
Gross Profit	$5.57B	$5.57B
Operating Expenses	-$3.68B	$1.89B
Operating Income	$1.89B	$1.89B
Other Income / Expense	-$1.24B	$642M
Pre-tax Income	$642M	$642M
Income Tax	-$270M	$372M
Net Income	$371M	$371M

Revenue$30.2B
Cost of Revenue-$24.7B
Gross Profit$5.57B
Operating Expenses-$3.68B
Operating Income$1.89B
Other Income / Expense-$1.24B
Pre-tax Income$642M
Income Tax-$270M
Net Income$371M

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