Altri (ALTR) Q1 2026 earnings summary

Executive summary

• Severe storms in Portugal and programmed downtime in Q1 2026 caused major operational disruptions, reducing production, raising costs, and significantly impacting profitability.

• Demand recovery in China and improved market balance supported BHKP price increases, while dissolving pulp gained competitiveness versus synthetics, reinforcing the long-term product mix strategy.

• Strategic projects, including Caima's acetic acid/furfural unit and Biotek's conversion to dissolving pulp, are progressing on schedule for completion by end-2026.

• Operations normalized by the end of Q1, with expectations for improved profitability and margins in Q2 2026.

• Revenues for Q1 2026 were €160.2M, down 21.3% year-over-year, mainly due to lower sales volumes and unfavorable pulp prices in Euros.

Financial highlights

• Q1 2026 EBITDA was €5.4M (margin 3.4%), down from 14.5% margin in Q1 2025, due to lower pulp prices, storms, and FX headwinds.

• EBIT was -€6.3M, compared to €18M in Q1 2025 and €13M in Q4 2025.

• Net result was -€7.3M, versus €8M in Q1 2025 and €9M in Q4 2025.

• Revenues declined 21.3% year-over-year, mainly due to lower net pulp prices, increased discounts, and a weaker USD.

• Net debt increased to €348.4M at March 2026, up from €329M at December 2025, driven by CapEx exceeding operating cash flow.

Outlook and guidance

• Profitability is expected to recover in Q2 2026 as prices improve, operations normalize, and non-recurring costs subside.

• CapEx guidance for 2026 remains at €60M; net debt is expected to slightly increase versus 2025.

• Variable cash costs are targeted to rise by mid-single digits for the year, despite Q1 pressures.

• Strategic diversification projects, including Biotek's conversion and Caima's new unit, are on track for completion in 2026.

• Asian demand recovery and higher hardwood pulp prices in Europe support a positive outlook.