Altri (ALTR) Q4 2025 earnings summary

Executive summary

• 2025 was a challenging year for the pulp sector, with excess supply, US tariff uncertainty, a weaker US dollar, and a significant drop in pulp prices impacting results, but Asian demand and improved tariff clarity are supporting a more positive outlook for 2026.

• EBITDA fell 56.9% to €94.1M, with margin dropping to 13.4% from 25.5% in 2024.

• Net profit declined 80.1% to €21.4M, reflecting price pressures and adverse currency movements.

• The group advanced its diversification strategy, acquiring majority stakes in AeoniQ (sustainable textile fibers), Altri Forestal, and expanding its forestry platform in Spain.

• Industrial projects progressed, including the Caima acetic acid and pulp mill (completion 1H 2026), Biotek’s conversion to dissolving pulp (full conversion by end-2026), and AeoniQ™ pre-industrial unit (start 2028).

Financial highlights

• Total revenues declined 17.8% year-over-year to €702.8M, with EBITDA down 56.9% to €94.1M and net profit down 80.1% to €21.4M.

• EBITDA margin for 2025 was 13.4%, down from 25.5% in 2024, but improved to 15% in 4Q25.

• EBIT and net profit improved in Q4 2025, rebounding from previous lows, driven by pricing recovery and cost efficiency.

• Net debt increased to €329M at year-end, reflecting investments in diversification and acquisitions.

• ROCE for 2025 was 6%, below the historical average of 16%.

Outlook and guidance

• Demand and pricing trends are positive entering 2026, with normalization expected after Q1 storm impacts.

• Profitability is expected to exceed Q4 2025 levels from Q2 2026 onwards.

• Variable costs may rise slightly in 2026 due to storm impacts and potential inflation from geopolitical tensions.

• Biotek’s full conversion to dissolving pulp and Caima’s acetic acid/furfural project are on track for completion in 2026.

• Geopolitical risks (e.g., Iran) may increase energy and logistics costs, but hedging is in place.