Sappi (SAP) Q4 2026 earnings summary

Executive summary

• FY26 Adjusted EBITDA was $294 million, down 41% YoY, amid market, cost and currency headwinds; Q4 Adjusted EBITDA improved sequentially to $99 million from $53 million.

• FY26 net loss widened to $747 million from $177 million, primarily reflecting impairments and forestry fair-value losses.

• Stronger H2 DWP pricing, North American packaging performance and Somerset PM2’s ramp-up supported Q4 improvement.

Financial highlights

• FY26 revenue was $5.277 billion and Adjusted EBITDA was $294 million, versus $5.458 billion and $501 million in FY25.

• Q4 revenue was $1.322 billion; net loss was $116 million versus $194 million in Q4 FY25, and Adjusted EPS was a loss of 3 US cents in both periods.

• FY26 special items reduced earnings by $405 million, including $319 million of impairments; forestry fair-value adjustment was a $269 million loss.

• Q4 reported operating loss was $60 million; operating profit excluding special items was $13 million.

Outlook and guidance

• Q1 FY27 Adjusted EBITDA is expected below Q4, reflecting planned maintenance, seasonal demand and elevated oil-related input and logistics costs.

• Q1 maintenance is expected to affect earnings by $41 million; DWP pricing momentum continued into October, with higher-price benefits phased in subject to contract lags.

• FY27 capital expenditure is estimated at $240 million, focused on maintenance, compliance, reliability and business continuity.

• FY27 cost-saving targets total ~$150 million, including ~€50 million in Europe, ~$43 million in North America and ZAR770 million in Southern Africa.