Verallia (VRLA) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue declined 2.4% year-over-year to €798 million, with organic growth at -1.2% and flat overall volumes; growth in most countries offset a decline in Germany.

• Adjusted EBITDA rose 8.3% year-over-year to €159 million, with margin improving to 19.9% from 18.0% in Q1 2025.

• Profitability improvement driven by positive price/cost spread, productivity gains, lower energy costs, and disciplined SG&A control.

• Industrial footprint adaptation underway, including plant and furnace closures in Germany, France, and the UK, with full impact expected in H2 2026.

• Net debt stable at €1.9 billion as of March 31, 2026, leverage at 2.7x LTM adjusted EBITDA.

Financial highlights

• Adjusted EBITDA reached €159 million, up 8.3% year-over-year, with margin at 19.9% (+197 bps); LTM adjusted EBITDA surpassed €700 million.

• Q1 revenue was €798 million, down 2.4% year-over-year; organic growth at -1.2%.

• Net debt as of March 31, 2026, stood at €1,896 million; leverage stable at 2.7x.

• Net productivity gains delivered €12 million (2.1% of cash production costs).

• Total available liquidity: €856 million as of March 31, 2026.

Outlook and guidance

• Full-year 2026 objectives confirmed: adjusted EBITDA around €700 million and free cash flow around €220 million (excluding restructuring cash out).

• Guidance assumes no significant deterioration in the Middle East situation.

• Focus remains on competitiveness, cash generation, deleveraging, capacity adaptation, and strict CapEx control (~8% of sales).

• Volume outlook for 2026 remains flattish (0±%), with no major changes expected.

• Price/cost spread expected to remain normalized for the full year.