Huhtamäki (HUH1V) Q4 2025 earnings summary

Executive summary

• Achieved record-high adjusted EBIT margin above 10% for both Q4 and the full year, despite volatile markets and significant FX headwinds, especially from the U.S. dollar.

• Adjusted EPS remained stable at EUR 2.48, matching last year's all-time high, with strong free cash flow and disciplined capital allocation.

• Board proposes a dividend increase to EUR 1.14 per share, marking the 17th consecutive annual increase.

• Volume growth achieved in two business segments, with margin improvements and strong cash flow generation.

• Sustainability progress includes higher use of renewable materials and electricity, improved waste recycling, and record safety performance.

Financial highlights

• Full-year net sales were EUR 3,960.2 million, down 4% year-over-year, mainly due to negative currency impacts.

• Adjusted EBIT for the year was EUR 405.1 million (10.2% margin), down 3% year-over-year, with Q4 at EUR 103.2 million (10.5% margin).

• Adjusted EPS stable at EUR 2.48; free cash flow increased 44% to EUR 311.2 million.

• Capital expenditure reduced by 31% to EUR 171.9 million.

• Net debt reduced to EUR 1,176.5 million; net debt/EBITDA at 1.9x, and gearing at 0.61.

Outlook and guidance

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

• Short-term risks and uncertainties remain, including FX volatility, market softness, and inflation.