Mondi (MNDI) H1 2025 earnings summary

Executive summary

• Delivered solid operational and financial performance in H1 2025, with underlying EBITDA at €564 million, nearly flat year-over-year, supported by strong packaging segments and strategic investments despite challenging macroeconomic and geopolitical conditions.

• Corrugated Packaging EBITDA rose 42% to €203 million, Flexible Packaging EBITDA increased 9% to €302 million, while Uncoated Fine Paper EBITDA fell to €81 million due to lower prices and reduced forestry gains.

• Cash generated from operations increased to €416 million, and all major capacity expansion projects, including the Duino recycled containerboard mill, are operational and ramping up.

• The Schumacher acquisition was completed and is integrating well, with expected EBITDA contribution of €30 million in 2025 and synergies to follow.

• Interim dividend of 23.33 euro cents per share declared, unchanged from H1 2024.

Financial highlights

• Group revenue for H1 2025 was €3,909 million, up from €3,739 million in H1 2024.

• Underlying EBITDA margin was 14.4%, slightly down from 15.1% in H1 2024.

• Cash generated from operations was €416 million, up from €372 million in H1 2024.

• Basic underlying EPS was 42.7 euro cents, compared to 50.5 euro cents in H1 2024.

• Net debt increased to €2,639 million, with leverage (net debt to underlying EBITDA) at 2.5x versus 1.7x at year-end 2024.

Outlook and guidance

• Management expects ongoing macroeconomic and geopolitical uncertainties to impact H2 2025, but remains focused on productivity, cost, and cash flow optimisation.

• Capital expenditure for 2025 remains guided at €750–850 million, with D&A expected at €475–500 million and net finance costs at €110 million.

• Incremental EBITDA from major capacity expansions now guided at €50–75 million for 2025, with most contribution in H2.

• Leverage expected to decline by year-end as cash generation improves.

• Effective tax rate expected at ~23%.