Huhtamäki (HUH1V) Q1 2026 earnings summary

Executive summary

• Comparable net sales grew 1% year-over-year despite challenging market conditions and significant negative currency impacts, supported by volume growth in key segments.

• Adjusted EBIT margin improved to 10.0% from 9.8% year-over-year, with strong cash flow delivery driven by disciplined capital allocation and cost efficiency.

• Free cash flow improved to EUR 10.0 million from EUR -22.5 million a year ago, driven by working capital management and capital discipline.

• Management team strengthened and focused on navigating geopolitical risks, especially the Middle East conflict, which impacted supply chains and costs.

Financial highlights

• Net sales decreased by 5% to EUR 946.8 million due to negative currency effects, but comparable sales excluding currency grew by 1%.

• Adjusted EBIT was EUR 94.5 million, down 4% year-over-year, but up 1% excluding currency impact.

• Adjusted EPS was EUR 0.56, down 5% year-over-year.

• Capital expenditure was EUR 27.0 million, mainly for Fiber Packaging capacity expansion, and below last year.

• Net debt decreased to EUR 1,178.6 million, with net debt/adjusted EBITDA at 1.9 and gearing at 0.59.

Outlook and guidance

• Trading conditions expected to remain relatively stable for 2026, with a strong financial position enabling pursuit of profitable growth opportunities.

• Currency headwinds expected to persist into Q2, with potential easing in the second half of the year.

• Return on investment remains below long-term ambition but is expected to improve with top-line growth.