Altri SGPS SA (FRA:ACJ) Q1 2026 Earnings Call Highlights: Navigating Storms and Strategic Progress

This article first appeared on GuruFocus .

• EBITDA:$5.4 million, margin of 3.4% compared to 14.5% last year.

• Net Loss:$7 million in Q1 2026.

• Revenue:Declined year-on-year due to lower net prices and weaker US dollar.

• Net Debt:Increased to $348 million from $329 million at the end of December 2025.

• Production Volumes:Decreased due to maintenance downtime and storms in Portugal.

• Sales Mix:Tissue represented 39% of sales; textiles 14%.

• Regional Sales:Europe 61%, Asia 19%.

• VHKP Prices:Increased 13% year-on-year in USD, 1% in Euros.

• Dissolving Pulp Prices in China:Declined from $940 to $810 per ton year-on-year, recovering to $835 per ton by March.

• Warning! GuruFocus has detected 5 Warning Signs with FRA:ACJ.

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Release Date: May 22, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Altri SGPS SA ( FRA:ACJ ) is seeing a recovery in demand from China, particularly in the hardwood segment, which is a significant market for the company.

• The company is progressing well with its strategic projects, such as the acidic acid and forefold project, expected to conclude in June 2026, and the migration of PHKC production to dissolving pulp by the end of 2026.

• Altri SGPS SA is focusing on diversifying its earnings and expanding into higher-value sustainable businesses, which aligns with long-term growth strategies.

• The company has maintained a solid balance sheet and a comfortable liquidity position despite recent challenges.

• There is an expectation of improved profitability in the second quarter of 2026 due to better pricing dynamics and normalized operations.

Negative Points

• The first quarter of 2026 was significantly impacted by severe storms in Portugal, affecting logistics, energy costs, and overall operations.

• EBITDA for the quarter was historically low at $5.4 million, with a margin of 3.4%, compared to 14.5% in the same period last year.

• The company faced increased logistics and energy costs due to the storms, which were largely non-recurring but had a significant impact on financial performance.

• There is concern about potential cost inflation in wood and energy prices due to recent geopolitical developments and weather-related disruptions.

• Altri SGPS SA experienced a decline in production volumes due to planned maintenance and storm-related disruptions, impacting sales and profitability.

Q & A Highlights

Q: What is driving the pricing divergence between Europe and China, especially considering the current market conditions? A: Jose Soares De Pina, CEO, explained that while pricing in Europe has progressed faster than in China, the market remains balanced in Europe. The stability of the European market and the pricing structure, which operates on contracts, have been primary drivers. Additionally, the substitution from softwood to hardwood supports hardwood prices.