#Nonwovens

2026-01-29

Suominen reports weaker 2025 results amid market pressure and US supply incidents; no dividend proposed

Suominen Corporation has published its unaudited Financial Statements Release for January 1–December 31, 2025, describing the year as an “unsatisfactory performance in a challenging environment”. Net sales and profitability declined year-on-year, reflecting lower volumes, adverse currency effects and intensified competition, while the company points to two significant incidents at its US facilities that constrained supply and weighed on both sales and profitability in the third and fourth quarters.

In the fourth quarter of 2025, Suominen’s net sales fell to EUR 95.3 million (118.5), with comparable EBITDA of EUR 1.9 million (4.2). Cash flow from operations in the quarter increased slightly to EUR 7.0 million (6.5). By business area, net sales in the Americas were EUR 58.8 million (72.7), while EMEA delivered EUR 36.5 million (45.8). For the quarter, the company reported an operating loss of EUR -3.2 million (0.9) and a loss for the period of EUR -3.9 million (0.8).

For the full year 2025, net sales decreased to EUR 412.4 million (462.3). Comparable EBITDA declined to EUR 12.6 million (17.0), while EBITDA was EUR 11.3 million (17.2). Suominen posted an operating loss of EUR -5.9 million (-1.3) and a loss for the period of EUR -12.1 million (-5.3). Despite the weaker result, cash flow from operations improved to EUR 12.2 million (3.9). Net sales in the Americas business area were EUR 252.6 million (287.9) and in EMEA EUR 159.9 million (174.4).

CEO Charles Héaulmé said that the nonwovens market continued to grow in 2025, with the wipes segment supported by the rapid expansion of moist toilet tissue in the United States, but market dynamics were shaped by excess capacity and changing trade flows linked to evolving trade policies. According to the company, imports from low-cost producers intensified, adding price and supply disruption. Suominen also notes that currencies impacted net sales negatively by EUR 4.8 million in Q4 and by EUR 12.0 million for the full year. The company adds that reduced sales volumes were the primary driver behind the comparable EBITDA decline, partly offset by cost-saving initiatives.

Operationally, Suominen highlights progress in its strategic initiatives, including the investment in a new production line in Alicante, Spain, announced in 2024, designed to strengthen sustainable product capabilities. The company states that the project is progressing towards commercial production commencing at the beginning of the second quarter of 2026. Suominen reports that new products accounted for 24% of net sales in the fourth quarter and 27% for the full year. To improve profitability, a cost-saving program launched at the end of the second quarter targets approximately EUR 10 million in benefits over 24 months, with implementation advancing in the second half of 2025 in line with the original plan. Even so, management says financial results and delivery reliability did not meet expectations and that a broad program is intended to be launched in early 2026 to restore performance and “unlock the company’s full potential”.

Looking ahead, Suominen expects its comparable EBITDA in 2026 to improve from 2025, when comparable EBITDA was EUR 12.6 million. The Board of Directors proposes to the Annual General Meeting that no dividend shall be distributed for the financial year 2025 (Dividend per share, EUR: 0.00).

On the balance sheet and financing side, net interest-bearing liabilities (nominal) at December 31, 2025 amounted to EUR 77.6 million (60.8), with gearing of 80.7% (51.7) and an equity ratio of 35.3% (37.9). Suominen notes that it entered into a single-currency syndicated credit facility agreement at the end of June 2025, comprising a EUR 50 million term loan and a EUR 50 million revolving credit facility with a three-year maturity and a one-year extension option, with Danske Bank A/S and Nordea Bank Abp as lenders. Gross capital expenditure in 2025 totaled EUR 26.3 million (16.0), with the largest items related to growth investments in Alicante, Spain and Bethune, USA.

In sustainability reporting, Suominen says it is developing its Climate Change Roadmap and Transition Plan and reiterates a target aligned with a 1.5°C climate scenario, namely a 42% reduction in absolute GHG emissions across Scopes 1–3 over 2025–2030, with 2024 as the base year. The company also reports 2 (2024: 4) lost time accidents (LTA) in 2025. Suominen states that it received an EcoVadis Gold Medal for the second consecutive year, placing it in the top 2% of rated companies.

Suominen plans to publish its Annual Report during the week commencing March 16, 2026, and the Annual General Meeting is planned to be held on April 15, 2026. The next financial report, the Interim Report for January–March 2026, is scheduled for Thursday, May 7, 2026.

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