Mondi reports US$219.8M Q3 EBITDA as energy costs surge 40%

AUSTRIA – Mondi reported underlying EBITDA of €196 million (US$219.8 million) in the third quarter of 2026, as higher selling prices and positive order books helped offset planned maintenance shutdowns and faster-than-expected input cost inflation.

Mike Powell, chief financial officer at Mondi, said gas prices averaged €63 (US$70.66) per megawatt hour in the third quarter, up 35 to 40% sequentially, compared with €44 (US$49.35) per megawatt hour when the company finalised its prior balance-sheet reporting.

Gas and other energy-related costs added roughly €20 million (US$22.4 million) to €25 million (US$28 million) to costs in the quarter. 

Powell said Mondi does not hedge energy costs, noting the group generates approximately 80 to 85% of its own energy, though it remains exposed to purchased gas alongside transport, logistics and biomass energy costs.

Wood Costs Track Prior Expectations

Powell said wood costs were broadly in line with prior expectations. Mondi had indicated a €35 million (US$39.3 million) increase in wood costs in the second half versus the first half, with roughly half of that movement occurring in the third quarter compared with the second.

He did not expect a large additional change in wood costs in the fourth quarter, although costs remain high.

Leadership Cites Resilient Performance and Price Increases

Andrew King, chief executive of Mondi, said the quarterly result included no forestry fair-value gain, compared with underlying EBITDA of €167 million (US$187.3 million) in the second quarter, when the company recorded a €43 million (US$48.2 million) forestry fair-value loss. 

Price increases introduced earlier in the year lifted average selling prices during the quarter, though King said inflation remained elevated and accelerated beyond the level anticipated at the half-year stage. 

He described the performance as resilient given maintenance shuts and input costs, adding that Mondi had announced further price increases across certain paper grades, though these take time to be fully reflected in earnings.

Pricing Momentum Uneven Across Markets and Segments

King said Mondi had seen material price increases across its portfolio despite competitive conditions and oversupply in certain recycled-paper markets. 

Containerboard price increases are still being passed through by box converters, with demand muted in northwestern Europe while southern Europe was more robust and Poland continued to grow. 

Mondi recorded about 1% like-for-like volume growth year over year. Sack kraft markets were comparatively stronger, with Mondi implementing its third sack-kraft price increase of the year, supported by input-cost inflation and good order books. 

Growth in e-commerce mailer bags has supported demand for extensible sack kraft, with applications replacing plastic wrap and, in some cases, corrugated boxes.

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