Mondi reports US$9B revenue for 2025 amid resilient performance in challenging market

UK – Mondi plc has reported a resilient financial performance for the year ended 31 December 2025, navigating what it described as a prolonged cyclical downturn across its core packaging and paper markets.

The group posted revenue of €7.66 billion (US$9.03bn), up 3% from €7.42 billion (US$8.75bn) in 2024, supported by higher sales volumes and contributions from the acquisition of Schumacher Packaging’s Western Europe assets.

However, underlying EBITDA declined 5% year-on-year to €1.00 billion (US$1.18bn), reflecting continued margin pressure and weaker pricing in uncoated fine paper and pulp.

Underlying EBITDA margin fell to 13.1%, compared with 14.1% in 2024, while profit before tax decreased 29% to €269 million (US$317.23m).

Basic underlying earnings per share dropped to 56.5 euro cents from 82.7 euro cents a year earlier.

Chief Executive Andrew King said the results demonstrated the strength of Mondi’s cost-advantaged and integrated asset base despite macroeconomic and geopolitical headwinds weighing on demand.

“Our industry continues to work through a prolonged cyclical downturn, yet we delivered a resilient full-year financial performance,” King said.

“We have intensified our focus on operational excellence, cost discipline and proactive portfolio optimization.”

During the year, Mondi generated €1.07 billion (US$1.26bn) in cash from operations, up from €970 million (US$1.14bn) in 2024, driven by improved working capital management.

Capital expenditure fell to €673 million (US$793.67m) from €933 million (US$1.1bn), as the company completed major expansion projects and shifted focus toward maintenance and targeted cost-optimization investments.

Capex for 2026 is expected to reduce further to around €550 million (US$648.61m).

Net debt rose to €2.6 billion (US$3.07bn), largely due to acquisitions and capital investments, resulting in leverage of 2.6 times underlying EBITDA.

The group maintains investment-grade credit ratings and ended the year with available liquidity of €1.29 billion (US$1.52bn).

The board has recommended a total ordinary dividend of 28.25 euro cents per share, aligning payouts with its dividend cover policy.

By business segment, Corrugated Packaging delivered €458 million (US$540.12m) in underlying EBITDA, down from €526 million (US$620.31m), impacted by lower uncoated fine paper and pulp pricing.

Flexible Packaging performed more strongly, with underlying EBITDA rising 4% to €583 million (US$687.53m) and margins improving to 14.8%, supported by solid demand for paper bags and high-margin consumer solutions.

Looking ahead, Mondi said paper prices in early 2026 remain modestly lower than late 2025 levels, and macroeconomic conditions remain uncertain.

However, the group expressed confidence in its long-term growth drivers, particularly the transition to sustainable, recyclable packaging and continued eCommerce expansion.

“We remain strongly positioned to capture the upside as market conditions improve,” King concluded.

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