Huimaqi's Q4 performance slightly exceeded expectations, with strong free cash flow

2026-02-14 01:41:10

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Investing.com – According to a research report released by Jefferies on Friday, packaging supplier Huhtamaki slightly exceeded expectations in Q4 earnings and demonstrated strong free cash flow.

The packaging supplier’s Q4 sales declined 2%, compared to a 1% decrease in Q3 2025, while Q4 2024 saw a 3% increase. Sales volumes in North America and the fiber division grew.

Q4 EBIT reached €103 million, up from €100 million in Q3, surpassing market consensus of approximately €100 million by about 3%. Earnings per share were €0.65, above the market expectation of €0.60, with strong free cash flow of €311 million.

By segment, North America (approximately 39% of group EBIT) contributed €43.7 million, exceeding expectations by 7%, with sales flat as volume growth offset negative impacts from pricing and product mix.

The Foodservice segment (22% of EBIT) reached €22 million, in line with expectations, but sales declined 7% due to decreased volumes in Western Europe and the UK. Flexible packaging (27% of EBIT) exceeded expectations by 12% with €31 million, benefiting from lower energy and transportation costs. The fiber division (12% of EBIT) contributed €15 million, above market expectations of €13 million.

Huhtamaki’s outlook for 2026 indicates that “the trading environment will remain relatively stable.” The company has implemented a new operating model granting full profit and loss responsibility to each division. With net debt to EBITDA ratio below 2x, the company has the capacity to pursue potential acquisitions.

Jefferies maintains a “Hold” rating with a target price of €34, representing an 8% upside potential. The firm notes that Huhtamaki’s 2026 P/E ratio is 13, below its 10-year average of 15, but a sales recovery is needed to drive valuation improvements.

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