Adjusted EBIT rose to EUR 110.5 million, but a EUR 23 million Foodservice contract helped, and North America's adjusted EBIT fell 61% 6. Net income rose only 2.6% and free cash flow fell 39% 18.
Huhtamäki Oyj · Q3 2026 · Reported 29 Oct 2026 · Nordic
Key figures
Million EUR | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Net sales | 1,017.80 | 970.60 | +4.9 % |
EBIT | 97.80 | 91.60 | +6.8 % |
Net income | 62.00 | 60.40 | +2.6 % |
EPS, EUR | 0.57 EUR/share | 0.56 EUR/share | +1.8 % |
Adjusted EBITDA | 158.00 | 151.70 | +4.2 % |
Margin | 15.5 % | 15.6 % | -0.1 pp |
EBITDA | 159.20 | 145.10 | +9.7 % |
Margin | 15.6 % | 15.0 % | +0.6 pp |
Adjusted EBIT | 110.50 | 100.30 | +10.2 % |
Margin | 10.9 % | 10.3 % | +0.6 pp |
Operating margin | 9.6 % | 9.4 % | +0.2 pp |
Net margin | 6.1 % | 6.2 % | -0.1 pp |
Figures in EUR, as reported. Margins are computed from the reported lines. Changes in ratios are in percentage points.
Foodservice profit growth leaned on a contract
Net sales rose 4.9% to EUR 1,017.8 million and comparable growth was 4% 2. Adjusted EBIT, a company-defined measure, rose to EUR 110.5 million from EUR 100.3 million a year earlier, and the margin was 10.9% against 10.3% 3.
Management says a contract in Foodservice Packaging's European smooth molded fiber operation added EUR 23 million to both net sales and adjusted EBIT 5. Foodservice adjusted EBIT was EUR 41.1 million against EUR 22.1 million, with the margin at 16.3% against 9.2% 6. Excluding that contract, the group's adjusted EBIT would not have risen, and this is the main caveat on the headline.
Reported EBIT grew less than adjusted EBIT, and net income barely moved
Reported EBIT rose 6.8% to EUR 97.8 million, and the operating margin was 9.6% against 9.4% 322. Items affecting comparability totalled EUR -12.7 million against EUR -8.7 million a year earlier, including SaaS implementation costs of EUR -6.4 million 7.
The report says EUR 16 million of the contract is booked as other income, offsetting EUR 16 million of business termination costs, both within these items 6. A calculation that removes only the cost gives EBIT of EUR 113.8 million and an 11.2% margin against 9.4% 39. It is not a company figure and overstates the underlying change, because the offsetting income stays in. Net financial expenses rose to EUR 17.1 million from EUR 12.8 million, and net income rose only 2.6% to EUR 62.0 million and EPS was EUR 0.57 against EUR 0.56 718.
North America deteriorated sharply while Flexible Packaging carried growth
North America net sales fell 7% to EUR 307.5 million and comparable sales fell 9% 5. Adjusted EBIT fell to EUR 13.3 million from EUR 34.2 million, and the margin was 4.3% against 10.3% 6. Management cites weak demand across most end markets, higher transportation and energy costs, and operational problems at a few sites 4.
Flexible Packaging was the strongest segment: net sales rose 17% to EUR 363.1 million and adjusted EBIT rose to EUR 38.4 million from EUR 31.0 million 15. Management credits volume growth and the pass-on of higher raw material prices linked to the Middle East crisis 15. Part of that sales growth is therefore price, not only volume.
Cash generation weakened against a year earlier
Operating cash flow was EUR 81.2 million against EUR 108.9 million a year earlier, while profit for the period rose to EUR 62.0 million from EUR 60.4 million 25. Free cash flow fell 39% to EUR 45.1 million 3. Inventory built by EUR 20.9 million against EUR 1.7 million a year earlier, and payables fell by EUR 41.8 million 25.
For the nine months, free cash flow was EUR 79.0 million against EUR 136.9 million, and the report attributes the decrease mainly to increased raw material prices 10. Higher inventory also hurt Foodservice segment cash flow 13.
What to watch next
Management's outlook is unchanged: trading conditions are expected to remain relatively stable during 2026 20.
Management plans recovery actions in North America and Foodservice, covering commercial excellence, procurement and cost out, possibly including a footprint restructuring, to reach its long-term ambition of a 10-12% adjusted EBIT margin 4.
Next quarter will show whether Foodservice margins hold without the EUR 23 million contract and whether cash flow recovers 5.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.