Essity AB (ESSITYBN) Q3 2026 Earnings Report
MX:ESSITYBN Q3 2026 EPS Results
- Actual EPS
- MXN 9.24
- Consensus EPS
- MXN 8.18
- Beat/Miss
- Beat by +MXN 1.06
- One Year Ago EPS
- MXN 9.13
MX:ESSITYBN Q3 2026 Revenue Results
- Actual Revenue
- MXN 67.71B
- Expected Revenue
- MXN 67.89B
- Beat/Miss
- Missed by -MXN 177.73M
- YoY Revenue Growth
- +4.11%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/22/2026
- Time
- Before Open
- Conference Call
- Thursday, October 22, 2026
MX:ESSITYBN Upcoming Earnings
Essity AB's next earnings date is estimated for January 21, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:ESSITYBN Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented a resilient but mixed quarter. Positive elements included stable group volumes, reported sales growth, market-share gains in Personal Care, progress in Feminine Care acquisitions, strong cash flow, a strong balance sheet, cost-saving execution and continued innovation. These were offset by negative organic sales growth, declines in Consumer Tissue, Baby Care and total Professional Hygiene volumes, substantial COGS inflation, margin contraction, elevated restructuring charges and expectations for further Q4 cost increases. Overall, the positive operational and strategic progress was balanced by significant cost and market pressures.
Company Guidance
For Q4, Essity expects “significantly higher COGS” year-on-year and sequentially, with a “fairly high number” versus Q3; SG&A excluding A&P is expected to be “roughly on the same level or actually even slightly lower” than Q4 of 2025 and sequentially, Q4 savings are expected to be “even bigger” than the “roughly about SEK 150 million or slightly more than SEK 150 million” delivered in Q3, and the cost-saving program is expected to deliver “in line or more than” promised, while A&P is expected to be “slightly higher” than Q3. Price increases will continue, with Consumer Tissue taking “roughly 2 quarters to compensate,” and the 1.2% volume impact from the Latin American factory footprint optimization is expected to remain in Q4, Q1 and Q2 of 2027; annual savings from that initiative are “roughly about SEK 150 million, SEK 160 million or $70 million.” The Feminine Care transaction in Brazil is expected to close by Q2 '27, A&P ambition remains “5.3%, 5.7% of sales,” Health & Medical volume growth is anticipated to return, and the tariff impact was described as “approximately about 60 basis points” for Professional Hygiene and “[ 20%, 30% ] basis points” for the group as a whole.
- Resilient Overall Performance and Stable Group VolumesManagement characterized the third quarter as resilient, with stable performance in a challenging market. Group volumes were stable overall, supported by volume-led growth in higher-margin categories and segments including incontinence care, Feminine Care, Wound Care, health care and premium Professional Hygiene products.
- Net Sales Increased 4.1%Net sales increased by approximately SEK 1.5 billion, or 4.1%, compared with Q3 2025. Currency contributed 2.5% and the North American Feminine Care acquisition contributed close to 2%; organic sales growth was slightly negative at minus 0.3%.
- Health & Medical Continued to GrowHealth & Medical continued to grow in both incontinence care and medical products, driven by higher prices and stable volumes. Wound Care delivered continued good growth, and North America was the strongest geographic highlight. Incontinence and Wound Care growth continued, while the company anticipated volume growth to return in Medical.
- JOBST Elvarex Soft Assortment ExpandedEssity enhanced its JOBST offering for lymphedema patients by extending the JOBST Elvarex Soft ready-to-wear assortment with new styles, sizes and body-part options. Management stated that ready-to-wear products provide compression therapy earlier in the treatment journey and help attract consumers to the JOBST brand.
- Feminine Care Innovation Expanded in Latin AmericaEssity rolled out its smart protect technology to the Night segment in Latin America. Management said the rollout further strengthens the company's position in the strategically important and fast-growing segment, where Essity is already a strong market leader with over 60% market share.
- Personal Care Market Shares IncreasedEssity reported increasing market shares across all three branded Personal Care categories. Incontinence Care and Feminine Care market-share gains translated into higher volume and sales growth. Management attributed the gains in part to investments made to drive market shares.
- Brazilian Feminine Care Acquisition AnnouncedEssity announced the acquisition of the o.b., Sempre Livre and Carefree brands in Brazil. Management described Brazil as the world's fourth-largest Feminine Care market, growing at roughly 4%, and said the transaction supports expansion of higher-margin categories in attractive geographies. The transaction is expected to close by Q2 2027.
- Brazil Acquisition Adds Retail Access for TENAThe Brazilian acquisition provides Essity with access to the retail channel, complementing its existing presence in Professional Hygiene, Medical Solutions and incontinence care. Management said Essity is already the incontinence-care market leader in Brazil through TENA's strong pharmacy-channel position and expects the retail access to support further TENA growth.
- North American Feminine Care Integration ProgressedIntegration of the North American Feminine Care acquisition continued, with margins improving step by step and sales progressing according to plan. Management said the acquisition is expected to double Essity's Personal Care sales in the U.S. and provide scale for a more effective go-to-market model.
- New North American Sales Model Implemented Without DisruptionEssity implemented a more direct North American sales model during the quarter and took greater ownership of commercial execution. Management said the transition occurred without business disruptions and should support deeper retailer relationships, broader distribution and greater in-store visibility. TENA also continued to show strong online performance and higher online market shares.
- Leakproof Apparel and North American Health & Medical MomentumLeakproof apparel in North America was described as performing very well in a fast-growing segment. Essity also reported good North American momentum in Health & Medical, including continued growth in Wound Care following the Hydrofera acquisition and generally strong portfolio and commercial execution.
- Consumer Tissue Product Innovation ContinuedEssity upgraded the Regio assortment to a higher level of softness and launched an expanded moist toilet paper product. Management said the new product is the largest and thickest moist toilet paper sheet available on the market, requires one sheet rather than two or three, and dissolves faster. Moist toilet paper remains a small part of the category but offers potential for value-added growth and differentiation.
- Tork Vision Cleaning ExpandedTork Vision Cleaning continued to grow and is now present in 38 airports worldwide, with expansion into health care, stadiums and industrial customers. Management said the AI-enabled product can reduce customers' cleaning-operation time by up to 25%. A U.S. BMW factory customer has 3,500 connected devices, and 50% of Tork Vision Cleaning customers are new to Tork.
- Strategic Professional Hygiene Products Continued to ImproveProfessional Hygiene's strategic segments continued to grow, and strategic products continued to improve from a volume perspective. Management identified Tork Vision Cleaning as a highlight and said the company is continuing to expand channel presence and acquire new customers.
- Cost-Saving Program Delivered SG&A BenefitsSG&A contributed 20 basis points to the group's margin, largely due to the cost-saving program, which was described as being close to completing its execution phase. Savings were roughly SEK 150 million or slightly more than SEK 150 million in the quarter, and management expected Q4 savings to be even larger and the overall program to deliver in line with or more than promised.
- Energy Savings Reached SEK 180 MillionDespite significant energy-cost pressure, Essity delivered approximately SEK 180 million in energy savings, which management said was very much in line with its full-year estimate.
- Strong Cash Flow and Improved Working Capital PerformanceTotal cash flow was SEK 5.8 billion in the quarter, supported by continued strong cash surplus and better working-capital performance. Management said working capital as a percentage of net sales improved compared with previous quarters, although the reported year-on-year increase was affected by energy hedging derivatives.
- Strong Balance Sheet Despite Acquisitions, Buybacks and DividendNet debt was SEK 25 billion and net debt to EBITDA was 1.0. Management described the balance sheet as very strong despite the North American Feminine Care acquisition, significant share buybacks and an increased dividend. The company also reported an approximately SEK 7.6 billion pension-asset surplus.
- Latin American Footprint Optimization Expected to Improve ProfitabilityEssity shut down a couple of plants in Latin America, moved production to a more efficient footprint and stopped selling some less-profitable volumes. Management said the initiative was profitable from a profitability standpoint and expected annual savings of roughly SEK 150 million to SEK 160 million or approximately $70 million, with savings already beginning to materialize.
- Feminine Care Acquisition Business Case Back on TrackManagement said actions taken after cost issues and inflexibility related to the North American acquisition's TSA agreement had put the business case back on track. The acquisition still had a negative impact on margins, but the impact was described as marginal compared with Q2.
- Sustainability Recognition and Investor SupportEssity was again awarded an EcoVadis Platinum rating and ranked among the top 1% of 175,000 companies assessed globally. Management also said Cevian supports Essity's strategy, including its various initiatives.
MX:ESSITYBN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 21, 2027 | 2026 (Q4) | 8.62- | 8.81 | ― | ― |
| Oct 22, 2026 | 2026 (Q3) | 8.189.24 | 9.13 | 1.23% (+0.11) | |
| Jul 16, 2026 | 2026 (Q2) | 8.157.40 | 8.24 | -10.25% (-0.84) | |
| Apr 23, 2026 | 2026 (Q1) | 7.977.94 | 8.32 | -4.51% (-0.38) | |
| Jan 22, 2026 | 2025 (Q4) | 9.098.81 | 7.75 | 13.56% (+1.05) | |
| Oct 23, 2025 | 2025 (Q3) | 8.899.13 | 8.88 | 2.75% (+0.24) | |
| Jul 17, 2025 | 2025 (Q2) | 8.938.24 | 8.86 | -6.99% (-0.62) | |
| Apr 24, 2025 | 2025 (Q1) | 8.548.32 | 6.59 | 26.21% (+1.73) | |
| Jan 23, 2025 | 2024 (Q4) | 9.407.75 | 8.52 | -9.03% (-0.77) | |
| Oct 24, 2024 | 2024 (Q3) | 8.868.88 | 8.69 | 2.16% (+0.19) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
