Huhtamäki Oyj’s Results January 1–December 31, 2025: Solid performance despite adverse currency impacts

Core Insights - Huhtamäki Oyj reported solid performance in 2025 despite adverse currency impacts, with net sales decreasing by 4% to EUR 3,960.2 million compared to EUR 4,126.3 million in 2024 [4][25] - The company experienced a comparable net sales growth of -1% for the year, with adjusted EBIT margin improving to 10.2% [13][27] - The Board of Directors proposed a dividend of EUR 1.14 per share, marking the 17th consecutive year of dividend growth [14][33] Financial Performance Q4 2025 - Net sales for Q4 2025 were EUR 980.5 million, down 7% from EUR 1,058.7 million in Q4 2024 [3][29] - Adjusted EBIT decreased to EUR 103.2 million, a 6% decline from EUR 110.3 million in Q4 2024, impacted by EUR 4.3 million from currency movements [18][20] - Reported EPS for Q4 was EUR 0.53, down 13% from EUR 0.61 in the previous year [4][21] Financial Performance 2025 - Total capital expenditure for 2025 was EUR 171.9 million, a 31% decrease from EUR 247.9 million in 2024 [4][30] - Free cash flow increased by 44% to EUR 311.2 million compared to EUR 215.8 million in 2024 [4][30] - The company’s net debt to adjusted EBITDA ratio decreased to 1.9, indicating a stronger balance sheet [14] Business Segment Performance - In Q4 2025, the Foodservice Packaging segment saw a sales decline of 11%, while North America and Flexible Packaging segments decreased by 6% and 8% respectively [16][29] - Fiber Packaging was the only segment to show resilience, with a slight decrease of 1% in sales [16][29] - For the full year, Fiber Packaging achieved a 5% increase in sales, contrasting with declines in other segments [23][24] Strategic Initiatives - The company implemented a new operating model aimed at increasing speed of execution and accountability, which has positively impacted performance [10][12] - Huhtamäki focused on disciplined capital allocation, prioritizing investments in high-yielding segments [9][8] - The acquisition of Zellwin Farms in North America was part of the strategy to drive growth [8]