Quarter ended
€ million	Sept 2025	Jun 2025	Mar 2025	Dec 2024	Sept 2024
Volumes sold – tons (000’s)	479	479	491	465	488
Revenue	483	503	523	517	541
Operating profit (loss) excluding special items	(31)	(19)	4	13	14
Operating profit (loss) excluding special items to revenue (%)	(6.4)	(3.8)	0.8	2.5	2.6
Adjusted EBITDA	(6)	4	25	35	36
Adjusted EBITDA to revenue (%)	(1.2)	0.8	4.8	6.8	6.7
RONOA pa (%)	(10.9)	(6.4)	1.4	4.6	5.1

Market conditions in Europe remained challenging with a continuing high level of competition against the backdrop of an oversupplied and weak demand environment. Pricing was adversely impacted and resulted in an Adjusted EBITDA loss for the quarter. The weak operating conditions have underscored the need for continued proactive measures to strengthen our competitive position. During the quarter, the consultation process for the closure of 175,000 tpa of capacity at Kirkniemi Mill was concluded, and good progress was made on consultations to close two machines at the Alfeld Mill and to reduce shifts at the Ehingen Mill. These initiatives will lower fixed costs and enhance capacity utilisation as we strategically carousel sales volumes across our remaining paper operations.

Sales volumes in the packaging and speciality papers segment improved by 8% compared to last year driven primarily by increased sales of label paper as we ramped up our wet strength label offering. Although paperboard demand remained stable and flexible packaging, especially in the dairy segment, showed gradual signs of recovery, other categories struggled in the difficult economic environment. Selling prices were 8% below the prior year, which significantly impacted profitability.

Graphic papers sales volumes were in line with the previous quarter but remained 5% below the levels of the prior year. Although market share increased, profitability remained under pressure due to weak regional demand, compounded by tariffs imposed on our exports to the US, global supply chain redirections, and persistent market overcapacity, which together drove an 11% year-on-year decline in overall segment pricing.

Variable costs for the fourth quarter decreased 7% year-on-year driven by lower purchased pulp and chemicals partially offset by higher wood and energy costs. Fixed costs were 2% above last year.

	Quarter ended
US$ million	Sept 2025	Jun 2025	Mar 2025	Dec 2024	Sept 2024
Volumes sold – tons (000’s)	359	326	362	371	389
Revenue	429	404	440	458	474
Operating profit (loss) excluding special items	(3)	(21)	5	47	47
Operating profit (loss) excluding special items to revenue (%)	(0.7)	(5.2)	1.1	10.3	9.9
Adjusted EBITDA	28	5	29	71	71
Adjusted EBITDA to revenue (%)	6.5	1.2	6.6	15.5	15.0
RONOA pa (%)	(0.7)	(4.9)	1.2	12.3	13.1

Profitability in the North American region improved modestly compared to the prior quarter but remained significantly below the levels achieved in the prior year. The graphic papers segment delivered a solid performance despite lower sales volumes, supported by a tighter domestic supply-demand balance and the resulting resilience in pricing. However, this improvement was offset by weaker results in the packaging and speciality papers segment, which was affected by the ramp-up of the Somerset Mill PM2 machine. Additionally, reduced pulp sales volumes and softer market pricing further weighed on overall regional profitability.

Sales volumes for packaging and speciality papers increased 22% compared to the previous year as production at the Somerset Mill stabilised and the PM2 ramp-up progressed through the quarter. Despite the higher sales, segment profitability remained below last year’s levels, primarily due to lower pricing in weak market conditions and higher costs. The cost increase was in line with expectations and reflected operational inefficiencies and limited fixed cost absorption during the transitional PM2 ramp-up phase.

Although demand for graphic papers continues to decline in North America, Sappi’s strategic decision to reduce exposure to the segment through the conversion of Somerset Mill PM2 has significantly improved the domestic supply-demand balance. Combined with the tariffs imposed on imports, this has created a strong pricing environment that supported improved profitability for the segment.

Demand for Sappi’s DWP remained robust, underpinned by strong seasonal demand from the VSF sector. However, substantially weaker pricing negatively affected the pulp segment’s profitability. Sales volumes in the pulp segment were 19% below last year but this was driven by an intentional reduction in external sales of high-yield pulp and a shift from DWP to paper pulp to strengthen internal integration at the Somerset and Cloquet Mills.

Variable costs for the fourth quarter increased by 6% year-on-year driven by operational inefficiencies with raw material costs largely stable. Fixed costs were 3% below the prior year due to personnel cost savings.

	Quarter ended
ZAR million	Sept 2025	Jun 2025	Mar 2025	Dec 2024	Sept 2024
Volumes sold – tons (000’s)	751	644	690	665	707
Revenue	6,936	6,334	6,598	6,312	7,165
Operating profit (loss) excluding special items	1,121	550	148	1,234	963
Operating profit (loss) excluding special items to revenue (%)	16.2	8.7	2.2	19.6	13.4
Adjusted EBITDA	1,486	1,172	883	1,663	2,033
Adjusted EBITDA to revenue (%)	21.4	18.5	13.4	26.3	28.4
RONOA pa (%)	13.8	6.7	1.8	15.3	12.0

The South African region delivered a satisfactory performance within the context of challenging global paper market conditions, weaker DWP pricing, and adverse US$/ZAR exchange rate movements affecting the pulp segment. Profitability improved compared to the previous quarter but remained below the exceptional levels achieved in the prior year. A positive plantation fair value price adjustment of ZAR90 million in the fourth quarter was insufficient to offset the losses in prior quarters. The net adjustment for the fiscal year was a loss of ZAR408 million.

Demand for Sappi’s DWP remained strong, supported by robust seasonal demand from the VSF sector. Sales volumes were 11% higher year-on-year, reflecting more stable operations during the quarter. However, margins in the pulp segment came under pressure as lower global US$ DWP pricing, combined with a weaker US$/ZAR exchange rate, drove ZAR-denominated prices 14% below the prior year.

Containerboard demand during the quarter was healthy as the citrus season concluded with citrus production significantly higher than last year. Although domestic demand in South Africa remained strong, weakness in global containerboard markets led to low-priced imports intensifying competition in the local market towards the end of the quarter. Profitability of the segment benefited from 2% higher sales volumes and a 4% rise in selling prices compared to the prior year.

Office paper and newsprint markets remained subdued and were further challenged by increased competition from imports. Higher year-on-year selling prices were insufficient to offset lower sales volumes, which reduced profitability of the graphic papers segment.

Variable costs for the fourth quarter were 3% above the prior year primarily driven by higher wood and chemical costs. Fixed costs were 8% lower than last year due to lower personnel costs.