Mondi reports 1H25 EBITDA miss but maintains positive outlook for 2026

Published 31/07/2025, 08:50
© Reuters.

Investing.com -- Mondi plc (LON:MNDI) on Thursday reported first-half 2025 EBITDA of €564 million, falling 3% short of consensus estimates of €580 million, with second-quarter results particularly disappointing.

The packaging and paper company’s second-quarter EBITDA came in at €274 million, including €16 million in forest fair value gains, representing more than a 6% miss compared to estimates.

This underperformance was primarily driven by challenges in the UFP division and foreign exchange headwinds in the Flexibles segment.

Earnings per share reached €0.43, 9% below the consensus expectation of €0.47.

Despite the earnings miss, Mondi demonstrated robust cash generation, though its net debt to EBITDA ratio increased to 2.5x following recent acquisitions, up from 1.7x in 2024.

Return on capital employed declined to 8.4% from 9.6% in 2024.

On a positive note, the company confirmed its capital expenditure projects are ramping up as planned, with €50-75 million expected in 2025, two-thirds of which will come in the second half of the year.

Mondi’s recent acquisitions are projected to contribute approximately €30 million to 2025 results, with the company confirming €22 million in three-year synergies despite challenging conditions in the corrugated segment.

The company maintained its maintenance capital expenditure guidance at €20 million for the first half and €80 million for the second half.

Depreciation and amortization estimates were raised to €475-500 million including acquisitions, up from the previous €450-475 million range. Finance costs are now expected to be higher at €100 million, compared to the earlier projection of €90 million.

Looking ahead, Mondi acknowledged ongoing geopolitical and macroeconomic uncertainties that will likely continue to impact trading conditions in the second half of the year. The company remains focused on productivity, cost and cash flow optimization initiatives while positioning itself for long-term value creation in structurally growing markets.

Mondi’s forest fair value gains totaled €18 million in the first half, within the €10-20 million guidance range, with €2 million in the first quarter and €16 million in the second quarter. The company maintained its 2025 forest fair value guidance at €30-60 million.

The company is positioned to see strong earnings and free cash flow improvements when the packaging sector eventually recovers, supported by its low-cost, well-invested asset base and returns from its €1.2 billion major capital expenditure program.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.