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Sappi Limited (SPPJY)
OTHER OTC:SPPJY
Earnings Data
Report Date
May 07, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.04Last Year’s EPS
-0.03Same Quarter Last Year
Based on 0 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Negative
The call outlined significant near-term headwinds — primarily a large decline in DWP prices, translated currency impacts, weaker selling prices (~12% YoY), production disruptions and a slower-than-expected ramp at Somerset — which drove substantially lower EBITDA and higher leverage (net debt ~$1.95bn; net-debt/EBITDA ~5x). Management, however, emphasized material mitigating actions: securing refinancing and a larger RCF, preserving liquidity ($143m cash, ~ $608m undrawn RCF), a $120m cost-savings program (with ~$30m realized in Q1), CapEx discipline (reduced to $260m), ongoing working-capital releases, and a strategic JV with UPM that could reduce European graphic exposure and debt over time. While these initiatives provide meaningful downside protection and demonstrate financial and strategic responses, the combination of persistent market price weakness and near-term guidance that Q2 EBITDA will be lower indicates that negative trends currently outweigh the positives.Company Guidance
EBITDA and Cash Resilience
Reported adjusted EBITDA of $90 million for Q1 FY2026; net cash utilization for the quarter was only $3 million despite multiple headwinds, demonstrating operational cash resilience.
Debt refinancing and Liquidity Strengthened
Closed a new EUR 200 million 5-year term loan post quarter-end to replace short-term euro debt; RCF renegotiated and increased from EUR 515 million to EUR 550 million with two additional banks; cash on hand $143 million and undrawn RCF approximately $608 million, providing significant near-term liquidity.
Cost savings program and CapEx discipline
Targeting $120 million of cost savings for the year (approximately $30 million realized in Q1 and the remainder expected evenly across remaining quarters); majority focused in Europe. CapEx guidance reduced from $290 million to $260 million (a ~$30 million or ~10% reduction) with expansionary spend removed.
Operational volume performance
Underlying DWP volumes and demand remained 'good and solid'; South Africa volumes increased (management cited ~37,000 tonnes year-on-year uplift). North America volumes were described as up (despite ramp timing issues).
Strategic JV with UPM and expected benefits
Announced joint venture with UPM to reduce exposure to graphic paper in Europe, capture synergies and help reduce debt; on track for definitive agreements in H1 2026 and target completion by end of 2026, subject to regulatory approvals.
ESG and external recognition
Improved CDP scores for climate change and forests; recognized by Forbes as one of the world's best employers and as a top company for women; annual and sustainability reports published.
Stability at Saiccor and operational improvements
South African Saiccor operations reported stable production following prior expansion; management highlighted ongoing operational efficiency initiatives as a key lever to reduce variable cost per tonne.
Recent positive DWP price movement and favorable FX dynamics for buyers
Management noted a small increase in DWP prices in recent weeks and highlighted renminbi appreciation improving buyer affordability (RMB price of DWP moved from ~7,500 RMB to ~5,500 RMB over the last year), which may support higher USD prices.
SPPJY Earnings History
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
SPPJY Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 04, 2026 | $1.17 | $1.21 | +3.07% |
Nov 06, 2025 | $1.32 | $1.38 | +4.39% |
Aug 07, 2025 | $1.52 | $1.50 | -0.92% |
May 08, 2025 | $1.80 | $1.65 | -8.65% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Sappi Limited (SPPJY) report earnings?
Sappi Limited (SPPJY) is schdueled to report earning on May 07, 2026, Before Open (Confirmed).
What is Sappi Limited (SPPJY) earnings time?
Sappi Limited (SPPJY) earnings time is at May 07, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SPPJY EPS forecast?
SPPJY EPS forecast for the fiscal quarter 2026 (Q2) is 0.04.