Sappi's Q2 earnings hit by market headwinds, shutdowns

Sappi Limited reported a decline in financial performance for its second quarter ended March 2025, with Adjusted EBITDA at US$107 million compared to US$180 million in the prior year. Revenue remained relatively stable at US$1.347 billion (Mar 2025) vs US$1.352 billion (Mar 2024), but earnings were significantly affected by lower DWP pricing, extended maintenance shutdowns in South Africa, and the conversion of the Somerset Mill PM2 in North America. Headline and Basic EPS was down at (US$3) Cents, while Adjusted EPS was 1 cent compared to 12 cents for the same period last year. The company anticipates continued market challenges, particularly related to trade tensions and inflationary pressures, leading to a cautious outlook for the third quarter. Capital expenditure forecast for FY2025 has risen to US$550 million. The company is committed to reducing net debt in FY2026 and FY2027.