Mondi plc

2025 underlying EBITDA was EUR 1 billion, versus EUR 1,049 million in the prior year. Cash generated from operations increased to EUR 1.072 billion. Net debt at year-end was EUR 2.6 billion, or 2.6x leverage. CapEx was EUR 673 million, below the previously guided EUR 750 million to EUR 850 million. The group also reported a working-capital inflow of EUR 83 million and dividends paid of EUR 352 million. For 2026, cash CapEx is expected to be approximately EUR 550 million, with about EUR 50 million still to flow for growth projects; management said fixed costs should be flat and input costs are guided to be flat at today’s view, though there is about a EUR 60 million energy headwind. Maintenance downtime is guided at about EUR 100 million, split roughly EUR 20 million in the first half and EUR 80 million in the second half.

Andrew King framed 2025 as a resilient outcome in a prolonged cyclical downturn and emphasized that Mondi is using self-help rather than waiting for markets to recover. He highlighted cost discipline, operational excellence, footprint optimization, and cash generation, while stressing that the company is well positioned to capture upside when conditions improve. He also pointed to structural growth drivers in sustainable packaging, e-commerce, and innovation as the long-term rationale for the portfolio.

Mike Powell said EBITDA held up despite continued margin pressure, with higher depreciation and finance costs weighing on EPS and returns because of the larger capital base from recent expansions and Schumacher. He highlighted stronger second-half working capital performance, the EUR 673 million CapEx outlay versus the prior EUR 750 million to EUR 850 million guide, and liquidity of around EUR 1.3 billion. He also said the group refinanced short-term maturities and has no further debt maturities until 2028, with no financial covenants. For 2026, he expects fixed costs to be flat after about 1,000 headcount reductions and 3 additional plant closures, and said input costs are currently seen as flat despite a roughly EUR 60 million energy-related headwind.

Analysts pressed management on where further plant closures could come from, with Andrew King saying Mondi will continue to close marginal sites where it can improve efficiency, citing recent closures in Hungary, Germany, and Turkey, while noting that Duino remains the key current loss-making mill but is still strategic for recycled containerboard security of supply. Questions also focused on leverage and capital allocation; Mike Powell said leverage is at the top end of the range they want, but deleveraging depends on both cash generation and EBITDA, and price recovery would accelerate that. Analysts asked about CapEx cuts and project ramp-up, and management said the lower 2026 CapEx level does not impair asset integrity or upside exposure, while Schumacher and the new upstream projects should support above-market growth as demand improves.