Huhtamaki Reports Higher Profitability in Q3 2026, Driven by Strong Flexible Packaging Performance

Huhtamäki Oyj, a global provider of sustainable packaging solutions, reported continued comparable net sales growth and improved profitability in the third quarter of 2026, despite a muted demand environment and persistent cost pressures in several markets.

The company’s net sales increased 5% year-on-year to EUR 1,017.8 million in the third quarter, compared with EUR 970.6 million in the corresponding period last year. Comparable net sales growth reached 4%, supported by improved sales prices and product mix, as well as strong performance in Flexible Packaging and solid growth in Fiber Packaging.

Adjusted operating profit (EBIT) increased 10% to EUR 110.5 million from EUR 100.3 million a year earlier. The adjusted EBIT margin improved to 10.9%, compared with 10.3% in the third quarter of 2025. Reported EBIT rose 7% to EUR 97.8 million, while adjusted earnings per share increased to EUR 0.68 from EUR 0.62.

Nine-month performance reflects improved operating profitability

For the first nine months of 2026, Huhtamaki recorded net sales of EUR 2,973.6 million, broadly in line with EUR 2,979.6 million in the previous-year period. Comparable net sales growth was 2%.

Adjusted EBIT increased 2% to EUR 308.7 million, compared with EUR 301.8 million in the first nine months of 2025. The adjusted EBIT margin improved to 10.4% from 10.1%, while reported EBIT rose 10% to EUR 255.2 million.

Adjusted earnings per share increased to EUR 1.88 from EUR 1.83, and reported earnings per share rose to EUR 1.46 from EUR 1.30.

Capital expenditure decreased to EUR 89.6 million from EUR 109.7 million, reflecting continued capital discipline. Free cash flow was EUR 79.0 million, compared with EUR 136.9 million in the corresponding period last year, primarily affected by increased raw material prices.

Flexible Packaging leads segment growth

Flexible Packaging delivered a strong third quarter, with net sales increasing 17% to EUR 363.1 million and comparable net sales growth reaching 18%. Adjusted EBIT rose 24% to EUR 38.4 million, supported by volume growth, higher sales prices, cost savings and turnaround initiatives.

Fiber Packaging also recorded solid progress. Third-quarter net sales increased 5% to EUR 97.1 million, while adjusted EBIT rose 22% to EUR 14.1 million. Improved sales prices and product mix supported profitability.

Foodservice Packaging reported third-quarter net sales of EUR 252.6 million, up 5%, while adjusted EBIT increased to EUR 41.1 million from EUR 22.1 million. The segment’s results benefited from a EUR 23 million impact associated with a concluded commercial contract in its European smooth molded fiber operation.

North America remained a challenging market. Net sales declined 7% to EUR 307.5 million, while adjusted EBIT fell 61% to EUR 13.3 million. Weak demand across most end markets, higher transportation and energy costs, and operational challenges at selected sites weighed on performance.

CEO highlights profitable growth and performance improvement priorities

Commenting on the results, President and CEO Ralf K. Wunderlich said:

“In the third quarter of 2026 we continued to deliver comparable net sales growth at strong margins despite facing uneven demand across our businesses. This demonstrates our ability to generate profitable growth where demand exists. At the same time, we recognize that parts of our business require continued focus to improve performance.”

The company is accelerating initiatives in commercial excellence, procurement and cost reduction to strengthen performance, particularly in North America and Foodservice Packaging. These measures include improving productivity, reducing input costs and evaluating opportunities to optimize the operational footprint.

Huhtamaki continues to focus on profitable growth and remains committed to its long-term ambition of achieving an adjusted EBIT margin of 10–12%.

Balance sheet and sustainability progress

At the end of September 2026, net debt stood at EUR 1,183.7 million, down from EUR 1,218.6 million a year earlier. The gearing ratio improved to 0.58 from 0.65, while net debt to adjusted EBITDA was 1.9 times.

The company also reported progress in its sustainability agenda. Its Scope 1 and Scope 2 climate transition plan was completed, and work continued on the Scope 3 transition plan, which the company aims to complete by the end of 2026. Huhtamaki also reported lower Scope 1 and Scope 2 emissions in the first nine months compared with the same period in 2025.

Outlook

Huhtamaki will continue to prioritize profitable growth, operational efficiency and disciplined capital allocation while addressing demand weakness and cost pressures in selected markets. The company’s near-term focus remains on strengthening performance in North America and Foodservice Packaging and sustaining momentum in Flexible Packaging and Fiber Packaging.