SIG Group (SIGN) H2 2025 earnings summary

Executive summary

• Sequential improvement in Q4 2025 led to positive revenue growth after Q3 destocking, with full-year revenue up 0.4% at constant currency and resin, reaching the upper end of expectations.

• Strategic review resulted in €351 million in non-recurring pre-tax charges, mainly for asset impairments and restructuring, with two asset disposals completed in China and Germany.

• Innovation continued with new machine deployments, expansion of sustainable packaging solutions, and EcoVadis platinum status.

• CEO transition occurred with Mikko Keto starting March 1, 2026, focusing on disciplined growth and operational execution.

• 68 new fillers placed in 2025, with a net increase of 14 after replacements and scrapping.

Financial highlights

• Reported revenue for 2025 was €3,249 million, down from €3,329 million in 2024; at constant currency, revenue grew 0.4%.

• Adjusted EBITDA was €718 million (22.1% margin); excluding non-recurring charges, €788 million (24.2% margin).

• Adjusted EBIT was €442 million (13.6% margin); excluding non-recurring charges, €511 million (15.7% margin).

• Adjusted net income was €231 million, or €285 million excluding non-recurring charges; EPS declined from €0.81 to €0.75.

• Free cash flow was €191 million, down from €290 million in 2024.

• ROCE was 25% (27% excluding non-recurring charges), down from 29% in 2024.

Outlook and guidance

• 2026 revenue growth expected to be flat to 2% at constant currency and resin, with adjusted EBIT margin guidance of 15.7%-16.2%.

• Midterm guidance: 3%-5% revenue growth, EBIT margin above 16.5%, net CapEx at 6%-8% of revenue, and net leverage target below 2.5x by 2027.

• Dividend payout paused for 2025; expected to resume at 30%-50% of adjusted net income in future years.