Elopak (ELO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was EUR 298.2 million, down 3.9% year-over-year, but stable (+0.2%) on a constant currency basis, with growth in Americas offset by EMEA and India headwinds.

• Adjusted EBITDA reached EUR 41.0 million (13.8% margin), down from EUR 44.6 million (14.4%) last year, impacted by currency, one-off items, and margin pressure in India.

• Net profit attributable to shareholders was EUR 16.9 million, in line with the prior year; adjusted EPS rose to EUR 0.07 from EUR 0.06.

• Extraordinary raw material and logistics cost increases, especially LDPE, due to Middle East conflict, are being mitigated by price surcharges to customers.

• CEO transition announced: CFO Bent K. Axelsen appointed interim CEO effective May 8, 2026; strategic direction unchanged.

Financial highlights

• Group revenue declined by 3.9% in EUR terms, but was flat (+0.2%) on a constant currency basis, mainly due to weaker USD, timing of equipment sales, and margin pressure in India.

• Adjusted EBITDA margin decreased to 13.8% from 14.4% year-over-year.

• Operating profit for Q1 2026 was EUR 21.2 million, down EUR 4.9 million from last year, mainly due to lower EBITDA.

• Cash flow from operations was EUR 19.8 million, up 84% year-over-year; net debt increased to EUR 397 million, mainly from NOK bond translation and new lease liabilities.

• Leverage ratio at 2.2x, up from 2.0x at year-end, due to U.S. investment and currency effects.

Outlook and guidance

• Moderate and gradual improvements expected from Q2 2026, despite ongoing geopolitical and macroeconomic volatility.

• Americas expected to remain the main driver of profitable growth, with continued capacity expansion and customer onboarding.

• Mid-term targets: 4-6% organic revenue growth per annum, 15-17% EBITDA margin, 50-60% dividend payout of normalized net profit, and ~2.0x net debt/EBITDA.

• Not guiding specifically for 2026 due to external uncertainties, but underlying business seen as resilient.