Verallia (VRLA) Q4 2025 earnings summary

Executive summary

• Revenue declined 3.6% year-over-year to €3,331 million in 2025, with organic growth at -2.8% and adjusted EBITDA down 17.8% to €692 million (margin 20.8%), mainly due to negative price/mix and FX headwinds.

• Net income was €93 million, impacted by exceptional asset depreciation, with free cash flow doubling to €166 million due to strict CapEx and working capital control.

• Major restructuring and industrial footprint adaptation plans are underway in Europe, targeting a 3% capacity reduction and site closures.

• BWGI increased its stake to over 77% following a successful tender offer.

• SBTi validated the net zero 2040 trajectory, with continued investments in decarbonization and innovation.

Financial highlights

• Q4 revenue fell 7.1% year-over-year to €763 million; Q4 adjusted EBITDA was €161 million (-20% year-over-year), margin at 21.1%.

• Net debt at year-end was €1.86 billion, leverage at 2.7x (up from 2.1x in 2024), mainly due to lower EBITDA.

• Dividend of €1 per share proposed, with major shareholders opting for shares to limit cash outflow.

• CapEx was €259 million (7.8% of sales), with strategic CapEx at €97 million (2.9% of sales); CapEx conversion rate improved to 62.6%.

• Free cash flow reached €166 million, up from €83 million in 2024.

Outlook and guidance

• 2026 is expected to see market stability but subdued demand, with flat Europe and growth in Latin America.

• Adjusted EBITDA guidance for 2026 is around €700 million; free cash flow target is €220 million, excluding restructuring cash out.

• CapEx to remain at ~8% of sales; no new capacity investments planned.

• Restructuring plan to deliver 50% of savings in 2026, fully realized by 2027.

• Focus on competitiveness, cash generation, and deleveraging.