Mondi Shares Rise Following Resilient Earnings Report

Mondi (LON: MNDI) shares are trading higher Thursday morning, up approximately 1.6%, following the release of its full-year 2025 results. The global packaging and paper group reported a resilient performance amidst a challenging cyclical downturn, with underlying EBITDA of €1,001 million.

Group revenue increased by 3% to €7,663 million, compared to €7,416 million in the previous year. However, underlying EBITDA experienced a slight decrease of 5%, falling from €1,049 million in 2024 to €1,001 million in 2025. Basic underlying earnings per share also declined, landing at 56.5 euro cents compared to 82.7 euro cents the prior year.

The company's financial summary highlights a mixed performance. While revenue saw a modest increase, profitability metrics experienced some contraction. This reflects the impact of lower paper prices and challenging macroeconomic conditions, as noted by Mondi.

Mondi's board is recommending a total ordinary dividend per share of 28.25 euro cents, a significant decrease from the 70.00 euro cents paid out in the previous year. This adjustment reflects the company's decision to bring the dividend back in line with its cover policy, prioritizing financial prudence and investment in core operations.

Cash generated from operations increased by 11% to €1,072 million. Net debt to underlying EBITDA increased to 2.6 times, compared to 1.7 times the prior year. Return on capital employed (ROCE) decreased to 6.7% from 9.6%.

According to Andrew King, Mondi Group Chief Executive Officer, “Our industry continues to work through a prolonged cyclical downturn, yet we delivered a resilient full year financial performance… We have intensified our focus on operational excellence and cost discipline.”

“Going into 2026, it remains unclear when geopolitical and macroeconomic conditions will improve…We are, however, confident in our ability to navigate these headwinds effectively through disciplined volume growth as we leverage our recent capacity expansions, strong margin management and cost optimisation.”

The company’s proactive approach to cost optimization, including plant closures and integration efforts, signals a commitment to enhancing efficiency and profitability.

Mondi's confidence in navigating market headwinds through disciplined volume growth and margin management provides reassurance to investors. While near-term challenges persist, Mondi's strategic actions and strong market position suggest potential for long-term value creation.