Ahlstrom Holding 3 Oy (AM1S) Q3 2024 earnings summary

Executive summary

• Achieved record-high Q3 2024 profitability with comparable EBITDA of €130.2 million (17.5% margin), driven by transformation initiatives, operational discipline, and portfolio simplification.

• Revenue grew 5.2% year-over-year to €742.7 million, with volume up 1% and strong cash flow.

• Strategic milestones included closure of the Bousbecque site, divestment of Aspa pulp mill, and centralization of parchment technology.

• Scope 1, 2, and 3 climate targets validated by the Science Based Targets initiative, reinforcing sustainability commitments.

• Customer loyalty reached the top decile in the industry, supported by new product launches in sustainable packaging.

Financial highlights

• Q3 2024 comparable EBITDA reached €130.2 million (17.5% margin), up from €119 million last year.

• Net sales in Q3 2024 were €742.7 million, up 5.2% year-over-year; excluding Stenqvist/Stenay divestment, growth was 6%.

• Comparable EBITDA margin for the first nine months rose to 15.2% from 13.5% year-over-year.

• Free cash flow for Q1–Q3 2024 was €281.7 million, with cash conversion at 82.2%.

• Q3 2024 net result was -€24.3 million, impacted by €48.2 million in restructuring and hedge losses.

Outlook and guidance

• Market growth is leveling off with spikier customer ordering and some destocking, especially in the US.

• Transformation initiatives and cost savings are expected to continue supporting profitability and margin improvements.

• Strategic focus on sustainable specialty materials and operational efficiency to drive above-GDP organic growth and strong cash conversion.