Sappi Limited Price & Performance (SPPJY)

Sappi reported a $20 million net loss for Q2 2025, reversing last year’s $29 million profit, as prolonged maintenance shutdowns in South Africa and weak global demand weighed on results. Adjusted EBITDA dropped to $107 million from $180 million, with packaging sales recovering but margins pressured by lower selling prices and economic uncertainty.123

Sappi’s Q2 2025 revenue reached $1.35 billion, beating analyst forecasts by 3.5%. However, earnings per share turned negative, missing estimates and highlighting ongoing operational and market challenges. The company’s shares fell 11% this week, underperforming both the South African forestry sector and the broader market.245

Sappi faces rising costs from the Somerset project shutdown and delayed maintenance at key mills, increasing CapEx to $550 million for the year. While packaging volumes are rebounding, persistent trade tensions and volatile pulp prices are hampering profitability, prompting management to adopt a cautious outlook for the coming quarters.563