Sappi optimistic about 2026 following a loss for 2025

SAPPI’S share price surged over 9% on the JSE on Thursday after it forecasted an improvement in its 2026 financial year, following a loss for 2025.

- EDWARD WEST

The woodfibre product manufacturer for global markets will focus on debt and strengthening its balance sheet through targeted cost savings, and operational efficiency improvements, CEO Steve Binnie said.

The share price traded 9.47% higher at R25.20 on Thursday morning - the price has ticked downward steadily this year from R54.10.

The group, which manufactures on three continents and sells products in over 150 countries, reported headline earnings per share sliding to a US 19 cents loss for the year to September 30, 2025, compared with the one US cent profit the year before.

“We're all in the same boat. Our peers in South Africa, Europe, and the US are all going through challenging times. We are going through a period where we are all inwardly focused on strengthening our balance sheets,” Binnie said in an online presentation. A key US investment would be bedded down, and debt would be reduced, he said. Adjusted earnings before interest, taxation, depreciation, amortisation, and special items (EBITDA) fell to $501 million. The loss for the period came at $177m versus an $33 million profit at the end of the 2024 financial year.