Mondi swallows US$365M in charges as soaring wood, energy costs bite, yet packaging prices begin to recover

AUSTRIA – Mondi has reported underlying EBITDA of €379 million (US$432 million) for the first half of 2026, as rising packaging prices and stronger volumes partially offset lower average selling prices, surging wood and energy costs, and €320 million (US$365 million) in special charges.

Group revenue climbed 6 percent to €3.9 billion (US$4.45 billion), with packaging volumes lifting across most operations, supported by capacity expansions and improving order books.

Yet average prices remained below the prior-year period following paper-grade price declines in late 2025 and early 2026. 

Mondi pushed through price increases during the first half and expects their full impact to land in Q3, with order books now robust across packaging segments. 

Energy and Wood Costs Deliver a One-Two Punch

The company booked €320 million (US$365 million) in pre-tax special charges, including a €296 million (US$337 million) non-cash impairment and €24 million (US$27.4 million) in cash restructuring costs. 

The impairment included €206 million (US$235 million) at the Duino mill in Italy, where volatile energy costs and weaker selling-price assumptions have dented expected returns.

CFO Mike Powell warned that Central and Eastern European wood costs will create a €30-35 million (US$34.2-39.9 million) headwind in H2, while energy volatility could add another €0-30 million (US$0-34.2 million) of uncertainty. 

A €35 million (US$39.9 million) forestry fair-value loss, compared with an €18 million (US$20.5 million) gain last year, added to the pain, driven by lower local wood prices in South Africa.

Packaging Volumes Climb as Network Restructuring Advances

Corrugated Packaging containerboard volumes surged about 12 percent, driven by the Duino and Kuopio mill expansion projects, while like-for-like box volumes edged up 2 percent. 

Flexible Packaging proved resilient, with converting operations absorbing pressure on kraft-paper margins. 

Mondi has announced six converting-plant closures over the past six months, with two already shut and four set to close by year-end, affecting roughly 800 customers and eliminating about 580 positions. 

The company trimmed full-year capital expenditure to about €500 million (US$570 million) from €550 million (US$627 million), reflecting tighter discipline across smaller projects. 

CEO Andrew King said trading momentum improved gradually through the first half, and Mondi enters the second half with higher packaging prices and strong order books, though energy costs, wood prices and geopolitical risks remain unpredictable.

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