Mondi (MNDI) Q2 2026 earnings summary

Executive summary

• Underlying EBITDA for H1 2026 was €379 million, down from €564 million in H1 2025, reflecting margin pressure from lower average selling prices and higher input costs, partially offset by higher sales volumes and pricing actions.

• Basic underlying earnings per share fell to 11.6 euro cents from 42.7 euro cents year-over-year.

• Cash generated from operations was €347 million, compared to €416 million in H1 2025, supported by strong working capital management.

• Special pre-tax charges of €320 million were recognized, mainly non-cash impairments (notably Duino, Neusiedler, Schwarzenberg mills) and €24 million restructuring/closure costs, with limited expected cash effect.

• Six converting plant closures underway, with two completed and four more to close by year-end, transferring volumes, reducing headcount by 580, and optimizing the network.

Financial highlights

• Group revenue rose to €3,975 million (H1 2025: €3,909 million), driven by acquired plants and higher organic sales volumes, though offset by lower average selling prices.

• Underlying EBITDA margin declined to 9.5% (H1 2025: 14.4%).

• Net debt at 30 June 2026 was €2,632 million, with net debt to underlying EBITDA at 3.2x (31 Dec 2025: 2.6x).

• Return on capital employed (ROCE) dropped to 4.0% (H1 2025: 8.4%).

• Forestry fair value loss of €35 million, compared to an €18 million gain last year, mainly from lower South African wood prices.

Outlook and guidance

• Trading momentum improved through H1 2026, with higher packaging paper prices and strong order books entering H2, but input cost volatility and geopolitical risks persist.

• Full-year capital expenditure guidance reduced to €500 million (previously €550 million and well below last year’s €690 million).

• Depreciation and amortization guidance reduced to €475 million for 2026.

• Maintenance shut impact for the year reduced to €80 million, all in H2.

• Full-year net finance costs expected around €125 million.