Core Insights - Suominen Corporation's profitability has been impacted by exceptional events, leading to a reduced outlook for 2025 [1][4][11] Financial Performance - For the period of January 1 - September 30, 2025, net sales decreased by 8% to EUR 317.1 million compared to EUR 343.8 million in 2024 [3][14] - In the third quarter (July-September 2025), net sales decreased by 11% to EUR 99.8 million from EUR 111.6 million in the same period of 2024 [3][12] - Comparable EBITDA for the third quarter increased slightly to EUR 3.4 million from EUR 3.3 million in 2024, while comparable EBITDA for January-September decreased to EUR 10.7 million from EUR 12.8 million in 2024 [3][18] - Cash flow from operations improved significantly to EUR 15.7 million in the third quarter, compared to a negative cash flow of EUR -2.6 million in the same period of 2024 [22] Operational Challenges - Two major incidents at US plants during the third quarter negatively impacted production: an equipment failure and significant flooding, which together affected comparable EBITDA by EUR 2.8 million [8][12] - Sales volumes decreased, but sales margins increased compared to the previous year, indicating a shift in pricing strategy [7][14] Outlook and Strategic Initiatives - The company revised its full-year guidance, now expecting comparable EBITDA to be lower than in 2024, which was EUR 17.0 million [4][11][76] - Suominen is accelerating its cost-saving program, aiming for savings of approximately EUR 10 million over the next 24 months [9] - Sustainability remains a core focus, with 30% of net sales in the third quarter coming from new products launched in the last three years [10][29] Market Environment - The demand for nonwovens is expected to recover in the second half of the year, but the recovery has been slower than anticipated due to supply chain disruptions [6][69] - The company operates primarily in North America and Europe, with the growth in nonwovens demand typically exceeding GDP growth by a couple of percentage points [72]

Core Insights - Suominen Corporation's profitability has been negatively impacted by exceptional events, leading to a reduced outlook for 2025 compared to previous expectations [2][10][75] Financial Performance - In Q3 2025, net sales decreased by 11% year-over-year to EUR 99.8 million, while for the first nine months of 2025, net sales decreased by 8% to EUR 317.1 million [2][12] - Comparable EBITDA for Q3 2025 was EUR 3.4 million, slightly up from EUR 3.3 million in Q3 2024, while for the first nine months, it decreased to EUR 10.7 million from EUR 12.8 million in the same period of 2024 [6][16] - The company reported a profit for the period of EUR -2.0 million in Q3 2025, an improvement from EUR -3.2 million in Q3 2024, and a loss of EUR -8.2 million for the first nine months compared to EUR -6.1 million in the same period of 2024 [15][18] Operational Challenges - Two significant incidents at US plants during Q3 2025, including an equipment failure and flooding, negatively impacted production and resulted in an estimated EUR 2.8 million loss in comparable EBITDA [6][10] - Cash flow from operations improved significantly to EUR 15.7 million in Q3 2025, compared to a negative cash flow of EUR -2.6 million in Q3 2024 [21] Market and Outlook - The company has revised its full-year guidance for 2025, now expecting comparable EBITDA to be lower than in 2024, which was EUR 17.0 million [2][10][75] - The demand for nonwoven products is expected to recover in the second half of the year, but the recovery has been slower than anticipated due to earlier supply chain disruptions [4][68] Sustainability Initiatives - Suominen received a Gold Medal from EcoVadis for the second consecutive year, placing it in the top 2% of companies in the textile manufacturing industry [9][25] - The company aims for over two-thirds of its raw materials to be plant-based and for more than half of its new R&D initiatives to focus on sustainable products [28]