Mayr-Melnhof Karton (MMK) H2 2025 (Q&A) earnings summary

Executive summary

• Achieved solid performance in a challenging market with soft demand and overcapacity, supported by the Fit-For-Future (FFF) program contributing €70 million to adjusted operating profit in 2025 and targeting over €250 million by 2027.

• Adjusted operating profit increased by 15% year-over-year on a like-for-like basis, excluding the divested Tann business.

• Balance sheet strengthened with higher equity ratio and lower net debt; dividend increased by 11% to €2.00 per share, reflecting a new payout policy.

• Absolute CO2 emissions reduced by 11% through renewable energy and efficiency measures.

• The company remains confident in its long-term prospects, supported by strong customer relationships and ongoing operational improvements.

Financial highlights

• Sales declined 4.8% year-over-year to €3,885.3 million, mainly due to the TANN divestment.

• Adjusted operating profit rose 2.8% to €195.4 million; pro forma excluding TANN up 15%.

• Adjusted EBITDA stable at €418.2 million; margin improved to 10.8%.

• Net profit fell 30.3% to €77.0 million; EPS dropped 28.7% to €3.86, mainly due to higher tax expense.

• Free cash flow declined sharply to €11.1 million from €302.2 million, impacted by higher capex and lower operating cash flow.

Outlook and guidance

• FFF program savings target raised to over €250 million by 2027, with the remaining savings expected to be split between 2026 and 2027.

• 2026 investments will focus on competitiveness and renewable energy, with capex around €250 million.

• Increased energy prices, especially gas and diesel, are expected to negatively impact Q1 and Q2 2026.

• The company is hedged for 33–50% of its energy volume for 2026.

• Maintenance standstills in Board & Paper division scheduled for Q3 and Q4, with €40 million in related expenses.