Sappi lost US$747 million in the year to September 2026, against US$177 million a year earlier, it said on 6 November 2026.
Revenue fell 3% to US$5,277 million. Adjusted EBITDA dropped 41% to US$294 million from US$501 million. In the fourth quarter it was US$99 million, down 11% on the US$111 million of the same quarter in 2025.
Sappi described the year as one of a “difficult and volatile operating environment”. It said a stronger rand reduced profit in South Africa, where imports of newsprint now face a 5% duty, and that higher fuel, logistics and chemical costs from the Middle East conflict added pressure.
What drove the loss
Special items cut earnings by US$405 million. They included impairments of US$319 million and US$26 million of costs on strategic projects. Sappi also booked a US$269 million loss on the fair value of its forestry assets, which it said was largely due to adverse currency movements on rand hardwood timber prices and persistent fuel cost inflation. Net finance costs rose to US$114 million on higher debt.
Headline earnings per share were a loss of 69 US cents, against a loss of 15 US cents. The announcement did not mention a dividend.
Period to Sep 2025Period to Sep 2026
Source: Sappi Limited SENS announcement, 6 November 2026. Quarter and year ended September 2026 against the same periods ended September 2025. Chart: Rand Desk
Debt and lenders
Net debt rose to US$2,050 million. Sappi said it used US$146 million of cash in the year and held US$707 million of liquidity, made up of US$165 million of cash and US$542 million of undrawn committed credit facilities.
Lenders extended the suspension of covenant testing on the international revolving credit facility and bank term debt from March 2027 to June 2027. It said it also agreed revised leverage covenant thresholds that give headroom to December 2027.
Segments
Sappi said dissolving wood pulp prices rose US$22 a ton in the fourth quarter to US$920 a ton. Port of Durban congestion delayed about 38,000 tons of dissolving wood pulp sales into the first quarter of its 2027 financial year. Packaging and speciality papers volumes rose 9% for the year as the Somerset Mill PM2 machine in North America ramped up, and graphic papers volumes fell 7%.
Outlook
Sappi said demand for dissolving wood pulp and North American packaging papers continues to improve, and that pulp price momentum extended into October. It also said it expects first-quarter Adjusted EBITDA for the 2027 financial year to be below the fourth quarter of 2026, with about US$41 million of planned maintenance. It estimated capital expenditure of about US$240 million for the 2027 financial year.
Sappi and UPM filed remedy proposals with the European Commission on 4 November 2026 for their planned European graphic papers joint venture. The company said it expects the Commission’s decision early in January 2027.
