Comparable EBITDA fell to €10.7 million (~$12.41 million), reflecting lower volumes and higher input costs, partly offset by better pricing and sales mix. The company recorded an operating loss of €2.7 million and a net loss of €8.2 million.
Finland’s Suominen Corporation reported net sales of €317.1 million (~$367.83 million) in the nine months of 2025, down 8% year-on-year due to lower volumes and currency difficulties. Comparable EBITDA fell to €10.7 million (~$12.41 million). Third-quarter sales fell 11 percent to €99.8 million (~$115.77 million) amid disruptions in the United States. Suominen revised its outlook for 2025, expecting lower EBITDA than in 2024.
Cash flow from operations turned positive, reaching €5.2 million, helped by improvements in working capital, particularly trade receivables. Capital spending increased to €17 million, largely attributed to ongoing investments in Bethune, US, and Alicante, Spain, which support future growth and sustainability initiatives, Suominen said in a press release.
The company’s net interest-bearing liabilities increased to 76.1 million euros, raising leverage to 76 percent from 57.1 percent last year. In June, Suominen obtained a new €100 million syndicated credit facility from Danske Bank and Nordea Bank, providing financial flexibility for strategic initiatives.
In the third quarter (Q3), Suominen’s net sales decreased 11 percent year-on-year to €99.8 million (~$115.77 million), as production disruptions in the US and weaker demand persisted. The Americas business area contributed 60.3 million euros, while Europe, the Middle East and Africa (EMEA) contributed 39.5 million euros.
Comparable EBITDA in the third quarter improved slightly to €3.4 million, as lower raw material prices offset reduced volumes. However, exceptional events (including an equipment failure at one plant and a flood at another) had a combined negative impact of €2.8 million on quarterly EBITDA.
Despite these setbacks, cash flow from operations increased to €15.7 million from –€2.6 million, driven by a €13.9 million improvement in working capital efficiency. The company’s current €10 million cost savings program, launched in May 2025, remains on track to achieve most of the measures planned by the end of the year.
“Demand for nonwovens has historically been stronger in the second half of the year. However, after supply chain disruption during the first half, third quarter volume recovery progressed more slowly than expected,” he said. Charles Heaulme, President and CEO of Suominen Corporation who assumed the leadership role on August 11, 2025.
He noted that the two major incidents in the United States had a clear negative impact on supply capacity, but reaffirmed confidence in the company’s recovery strategy.
“We have accelerated the execution of our cost savings program and are focused on restoring profitability. Sustainability remains central to our strategy, with 30 percent of third quarter net sales derived from products launched in the last three years,” Heaulme added.
Suominen aims to achieve zero manufacturing waste in landfills by 2030 and source more than two-thirds of raw materials from plant-based resources. The company also reported one lost time accident (LTA) during the first nine months, underscoring its commitment to workplace safety, the statement added.
Suominen revised its outlook on October 15 and now expects its comparable EBITDA to be lower than in 2024, reversing previous projections of improvement. The downgrade reflects a slower-than-expected market recovery, currency pressures and operational disruptions in the United States.
“Given the slower market recovery and incidents at our plants, we have adjusted our guidance. As we move forward, our priority remains to drive the recovery, improve cost efficiency and strengthen Suominen’s performance,” Heaulme concluded.
Fiber2Fashion News Desk (SG)
