Huhtamaki third quarter earnings beat driven by one-time gain

Huhtamaki on Thursday reported third quarter earnings that exceeded expectations by 15%, though the results included a one-time contract gain that masked underlying weakness in its North American operations.

The Finnish packaging company posted sales growth of 4% and earnings before interest and taxes of €110.5 million for the third quarter, compared with analyst expectations of €96 million. The foodservice division in Europe, Middle East and Africa contributed €41 million versus the €20 million consensus estimate.

A €23 million contract for smooth molded fiber boosted the foodservice division’s results. Excluding this gain, the underlying third quarter EBIT would have been approximately €87 million, representing a 10% shortfall against analyst forecasts.

The North American segment posted €13 million in EBIT, falling 54% short of the €29 million consensus. The region faced weak demand in foodservice and retail tableware, increased logistics costs, and ongoing operational challenges.

The flexible packaging division delivered €38 million in EBIT, beating the €34 million estimate by 12%. The segment benefited from volume growth and effective raw material management. The fiber division met expectations at €14 million.

Huhtamaki maintained its 2026 outlook for trading conditions to remain relatively stable. The company trades at 11 times its 2027 price-to-earnings ratio, below its five-year average of 14 times.