Quarter ended
EUR million	Jun 2026	Mar 2026	Dec 2025	Sept 2025	Jun 2025
Volumes sold – tons (000’s)	452	499	461	479	479
Revenue	466	492	457	483	503
Operating profit (loss) excluding special items	(8)	(5)	10	(31)	(19)
Operating profit (loss) excluding special items to revenue (%)	(1.7)	(1.0)	2.2	(6.4)	(3.8)
Adjusted EBITDA	12	17	33	(6)	4
Adjusted EBITDA to revenue (%)	2.6	3.5	7.2	(1.2)	0.8
RONOA pa (%)	(3.4)	(2.0)	3.7	(10.9)	(6.4)

The European region delivered an improved financial performance compared to the prior year, primarily due to fixed cost savings arising from strategic rationalisation actions. Sales volumes were 6% below last year, impacted partly by a loss of graphic papers’ market share as pricing discipline was maintained in the quarter to recover rising input costs.

The European graphic papers market continues to face the dual challenges of structural demand decline and persistent industry overcapacity. Sales volumes for the segment declined by 8% compared to the prior year, reflecting both a softening of market demand compared to earlier in the year and a modest loss of market share as mentioned above. Excess capacity in the market continued to constrain pricing, with average selling prices remaining 3% below last year. Within the context of volatile and rapidly increasing input costs, these market conditions continued to limit margin recovery. Fixed cost savings and operational efficiency gains arising from our strategic rationalisation initiatives were unable to fully offset the impact of the lower sales volumes and selling prices, leading to reduced profitability relative to the prior year.

Packaging and speciality papers markets in the region remained under pressure from ongoing overcapacity and lacklustre demand across most product categories. Wet glue labels were the only category to deliver meaningful year-on-year growth, while weakness persisted in paperboard, containerboard and flexible packaging markets. Sales volumes for the segment were 2% above the prior year but average selling prices declined by 2%. Despite these challenging market conditions, profitability improved year-on-year, albeit from a low base, benefiting from cost savings associated with the Alfeld Mill rationalisation programme.

Variable costs were in line with last year with lower purchased pulp and energy costs offset by higher wood and chemical costs. Fixed costs decreased by 6% primarily due to lower personnel costs associated with the rationalisation activities.

	Quarter ended
US$ million	Jun 2026	Mar 2026	Dec 2025	Sept 2025	Jun 2025
Volumes sold – tons (000’s)	380	352	335	359	326
Revenue	454	420	395	429	404
Operating profit (loss) excluding special items	(5)	(24)	(30)	(3)	(21)
Operating profit (loss) excluding special items to revenue (%)	(1.1)	(5.7)	(7.6)	(0.7)	(5.2)
Adjusted EBITDA	22	7	(1)	28	5
Adjusted EBITDA to revenue (%)	4.8	1.7	(0.3)	6.5	1.2
RONOA pa (%)	(1.2)	(5.7)	(6.9)	(0.7)	(4.9)

The North American region delivered a significant improvement in profitability compared to the prior quarter and the prior year. The ramp-up of Somerset Mill PM2 continued to gain momentum during the quarter, with paperboard sales volumes increasing by 63% compared to the prior year. Importantly, the machine was able to operate continuously throughout the quarter, albeit at a slower speed than design capacity, enabling operational efficiency improvements. Improved operational stability across the region, together with higher sales volumes, contributed to a reduction in unit costs and supported the stronger financial performance.

The packaging and speciality papers segment delivered a strong improvement in sales volumes as the commercial ramp-up of Somerset Mill PM2 progressed. Sales volumes increased by 41% year-on-year and 24% compared to the prior quarter, reflecting the steady expansion of paperboard production and sales volumes from the machine. While early signs of demand recovery and improving sentiment emerged in North American paperboard markets, selling prices remained depressed and were 8% below the prior year. Despite these pricing challenges, significantly higher sales volumes and improved manufacturing efficiencies resulted in lower costs and an improvement in segment profitability. Improving market conditions enabled Sappi and most major domestic competitors to announce paperboard price increases during June and July 2026, with the resulting positive earnings impact expected to be realised progressively over the coming quarters.

Graphic papers markets in North America continued to experience structural demand decline. However, market conditions remained relatively balanced following the capacity reduction associated with the Somerset Mill PM2 conversion, supporting more resilient pricing dynamics than those experienced in other regions. Sales volumes for the segment were 5% below the prior year, reflecting the continued demand decline. Nevertheless, improved operational stability and 3% higher selling prices resulted in improved profitability compared to the prior year.

External demand for our pulp products remained steady. We continued to optimise regional profitability through the strategic internal integration of paper pulp from Cloquet Mill into our graphic papers production and high-yield pulp from Matane Mill into paperboard production at Somerset Mill. Although realised DWP selling prices remained below the prior year, lower operating costs and the absence of the Cloquet Mill annual maintenance shut, which occurred in the comparative period, more than offset the pricing impact. As a result, profitability for the segment improved year-on-year.

Variable costs were 3% below the prior year due to improved operational efficiencies and lower purchased pulp costs which were partially offset by higher delivery costs. Fixed costs were 7% below last year primarily due to lower personnel and maintenance cost.

	Quarter ended
ZAR million	Jun 2026	Mar 2026	Dec 2025	Sept 2025	Jun 2025
Volumes sold – tons (000’s)	732	728	749	751	644
Revenue	5,591	5,522	6,164	6,936	6,334
Operating profit (loss) excluding special items	(2,774)	(1,796)	205	1,121	550
Operating profit (loss) excluding special items to revenue (%)	(49.6)	(32.5)	3.3	16.2	8.7
Adjusted EBITDA	194	334	805	1,486	1,172
Adjusted EBITDA to revenue (%)	3.5	6.0	13.1	21.4	18.5
RONOA pa (%)	(39.2)	(23.2)	2.6	13.8	6.7

Profitability in the South African region declined compared to the prior year, impacted by lower sales volumes (excluding forestry) and selling prices, particularly within the pulp segment where lower US Dollar selling prices and adverse US$/ZAR exchange rate movements continued to create significant headwinds for the business. The scheduled maintenance shut at the Ngodwana Mill reduced earnings in line with guidance by approximately US$22 million. The forestry fair value price adjustment for the quarter was a loss of ZAR2.523 billion, primarily driven by adverse exchange rate movements impacting the ZAR-denominated price of hardwood timber linked to US Dollar export parity and higher fuel costs.

Demand for Sappi’s DWP remained healthy during the quarter, supported by favourable downstream VSF market conditions. Sales volumes were below the prior year, largely as a result of the scheduled maintenance shut at Ngodwana Mill. Segment profitability was significantly impacted by higher delivery and sulphur⁽¹⁾ costs due to the conflict in the Middle East and lower US Dollar selling prices compounded by unfavourable exchange rate movements, which reduced ZAR-denominated selling prices by 11% compared to the prior year.

Containerboard demand remained solid, underpinned by the seasonal strength of the citrus export market. However, sales volumes were 4% below the prior year due to low inventory levels and the impact of the Ngodwana Mill maintenance shut. Selling prices were 5% lower than last year as import competition continued to pressure the domestic market. Consequently, year-on-year profitability was impacted by lower volumes, weaker pricing and the costs associated with the Ngodwana Mill maintenance shut.

Demand for office paper and newsprint remained stable during the quarter. However, profitability continued to be impacted by intense competition from low-priced imports, which placed significant pressure on selling prices. Selling prices for the graphic papers segment were 12% below the prior year, offsetting the benefit of stable demand.

Variable costs were stable year-on-year with lower energy and purchased pulp costs offsetting higher chemical and delivery costs. Fixed costs were 4% above last year with personnel savings more than offset by higher maintenance costs due to the Ngodwana Mill maintenance shut.

⁽¹⁾ Sulphur is a key raw material for the bisulphite pulping process used at the Saiccor Mill.