SIG Group AG

SIG reported H1 2026 revenue of EUR 1.56 billion, adjusted EBIT of EUR 244 million, adjusted EBIT margin of 15.6%, and adjusted net income of EUR 133 million. Revenue grew 0.8% at constant currency in H1 and 1.5% at constant currency in Q2; Aseptic Carton grew 1.6% in H1, Americas revenue rose 4.4% in H1, and free cash flow improved by more than EUR 100 million to negative EUR 32 million, with Q2 free cash flow positive at EUR 32 million. Looking ahead, SIG reaffirmed full-year 2026 guidance for revenue growth of 0% to 2%, adjusted EBIT margin of 15.7% to 16.2%, net CapEx including leases of 6% to 8% of revenue, and an adjusted effective tax rate of 26% to 28%.

Mikko Keto framed the half as a resilient performance in a difficult market, citing Middle East conflict, higher raw material and freight costs, and softness in some end markets. He emphasized that SIG’s surcharge mechanism has been successful in offsetting cost inflation and that the company is focused on cost discipline, operational excellence, and accelerating growth in aseptic system solutions. His tone was confident but cautious, repeatedly noting that geopolitical uncertainty still remains a risk.

Ann-Kristin Erkens highlighted the financial bridge behind the improved EBIT: timely surcharges, stronger operational performance, SG&A savings, lower depreciation, and some sourcing effects. She said lower customer incentive payments contributed about EUR 40 million to EUR 50 million of the free cash flow improvement, with a similar base effect from trade working capital, while coupon payments reduced H1 by about EUR 18 million and lower tax payments added about EUR 8 million. She also noted gross debt fell by almost EUR 240 million and net debt by almost EUR 290 million versus June last year, reported leverage stayed at 3x, and covenant leverage improved to 2.8x.

Analysts pressed on second-half volume trends, Europe’s weak juice business, China pricing pressure, and whether Americas growth was sustainable. Management said aseptic carton volumes were mildly positive in H1 and expected a sequential improvement in H2, but Europe’s juice category remains weak and unlikely to recover quickly; they also said China remains strategically important and competitive, but price increases are difficult in a low-inflation environment. On Americas, management pointed to strong positions in Brazil and Mexico and successful pricing/surcharge execution, while saying the Q2 strength was not driven by a major one-off event.