Champion Iron Posts C$0.06 Adjusted Loss Per Share as Huhtamäki Sales Rise 5%
Key Facts
Champion Iron reported an adjusted loss of C$0.06 per share in its second quarter of fiscal 2027, ended Sept. 30, as revenue fell 18% year over year to C$403.932 million. The adjusted result compared with a reported loss of C$0.09 per share, after the company posted reported and adjusted earnings of C$0.11 per share in the same period a year earlier. Revenue then was C$492.890 million, and the net result turned from a profit to a loss. Meanwhile, the company’s iron ore concentrate sales reached a record, highlighting the divergence between operating activity and revenue during the quarter. The figures show pressure on the financial results despite higher production and shipments, according to the company’s results.
Champion Iron produced about 3.9 million wet metric tons of iron ore concentrate, up 9% from the same period, and sold 4.5 million dry metric tons, up 17%, a quarterly record. But higher volumes did not prevent the annual revenue decline, which the company attributed to lower iron ore price indices and higher ocean freight and fuel costs. It said some of the higher fuel prices were linked to the conflict in the Middle East, while start-up costs for the DRPF facility also affected quarterly results. Production and sales growth thus coincided with lower prices, higher transportation and energy costs, and initial operating expenses. The year-earlier comparison shows the result’s shift from a profit to a loss, alongside the factors cited by the company.
In packaging, Huhtamäki’s net sales in the third quarter of 2026 rose 5% to 1,017.8 million euros from 970.6 million a year earlier, while comparable sales growth was 4%. Reported operating profit was 97.8 million euros, compared with 91.6 million, and adjusted operating profit rose to 110.5 million euros from 100.3 million. Adjusted earnings per share were 0.68 euros, compared with 0.62 euros in the same period. The gap between nominal sales growth and comparable growth shows the two measures moved at different rates, while operating profit increased on both a reported and adjusted basis. The company had posted comparable growth of 2% in the second quarter, following growth of 1% in the first half of the year.
Business-unit performance varied: comparable sales grew 18% in flexible packaging and 3% in fiber packaging, while falling 9% in North America. The region’s adjusted operating profit margin declined to 4.3% from 10.3% a year earlier. CEO Ralf K. Wunderlich said strong performance in flexible packaging and growth in fiber packaging were offset by weak demand, operational challenges and inflation-driven cost increases in North America. Foodservice packaging sales and adjusted operating profit also benefited by 23 million euros from a contract in European smooth molded fiber operations. The company said 16 million euros was recorded as other income, offset by costs of ending work of the same amount related to the contract.
Huhtamäki said its 2026 outlook was unchanged and that it expects trading conditions to remain relatively stable, with its financial position allowing it to pursue profitable growth opportunities. It cited recovery measures in North America and foodservice packaging, including improvements in commercial performance and procurement and cost reductions. The company maintained its long-term ambition for an adjusted operating profit margin of between 10% and 12%. In the market, its shares fell 6.12% to 25.48 dollars in premarket trading on Oct. 29, despite adjusted earnings per share of 0.68 euros exceeding the published estimate of 0.5962 euros. Champion Iron, meanwhile, announced the shipment of its first commercial DRPF product and said it had secured additional trial shipments and commercial agreements scheduled for the third quarter of fiscal 2027. The company scheduled an online call for Oct. 29, 2026, at 9:00 a.m. Montreal time to discuss the results.