Sappi Limited Reports Challenging Q3 2025 Results

Sappi Limited ( (SPPJY) ) has released its Q3 earnings. Here is a breakdown of the information Sappi Limited presented to its investors.

Sappi Limited is a global leader in the production of woodfibre-based products, including packaging papers, graphic papers, pulp, and biomaterials, with a focus on sustainable and innovative practices. In its latest earnings report for the third quarter of 2025, Sappi faced significant challenges due to global economic weaknesses and trade tensions, resulting in a loss of $33 million compared to a profit of $51 million in the same period last year. Key financial metrics showed a decline, with revenue slightly down to $1,321 million and adjusted EBITDA falling to $80 million from $148 million in the previous year. The company’s net debt increased to $1,947 million, reflecting higher operational costs and currency translation effects.

The quarter was marked by the completion of the Somerset Mill PM2 conversion project, which, despite initial operational disruptions, is expected to enhance Sappi’s product offerings in the packaging and speciality papers segments. However, the global market conditions, including oversupply and competitive pressures, particularly in Europe, have negatively impacted profitability. The graphic papers segment continues to struggle with structural declines, while the packaging and speciality papers segment faces weak downstream demand.

Looking ahead, Sappi’s management remains cautiously optimistic about the recovery of dissolving wood pulp prices and anticipates improved operational efficiencies in the fourth quarter. The company plans to focus on reducing net debt and optimizing its product portfolio, particularly in North America, to capture long-term growth opportunities as market conditions improve.