Mondi (LSE:MNDI) reported weaker full-year 2025 earnings as persistent margin pressure and an extended industry downturn weighed on results, even as revenue edged higher and cash generation strengthened.
Group revenue increased 3% year on year to €7.7 billion, helped by improved sales volumes and the impact of the Schumacher acquisition. However, underlying EBITDA declined 5% to €1,001 million, reflecting tougher trading conditions, and the underlying EBITDA margin narrowed to 13.1% from 14.1% the previous year.
Profit before tax fell 29% to €269 million, while basic underlying earnings per share dropped to 56.5 euro cents, compared with 82.7 euro cents in 2024.
Cash generated from operations rose 11% to €1,072 million, supported by effective working capital management. Net debt to underlying EBITDA climbed to 2.6 times from 1.7 times, largely due to investment spending, including the Schumacher deal and major capital expenditure projects.
The board proposed a total ordinary dividend of 28.25 euro cents per share, sharply down from 70.00 euro cents last year, in line with the group’s dividend cover framework.
Chief Executive Andrew King said the company “delivered a resilient full year financial performance” despite a “prolonged cyclical downturn,” pointing to the benefits of its integrated asset base and continued cost control.
Looking ahead, Mondi cautioned that the timing of any recovery in geopolitical and macroeconomic conditions remains uncertain. Paper prices at the start of 2026 are slightly below levels seen in the final quarter of 2025, but the group said it is confident in its ability to manage ongoing challenges through disciplined volume growth, margin focus and cost efficiency measures.
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