Mondi plc (LSE:MNDI) reported second-quarter EBITDA ahead of market expectations on Thursday and lowered its capital expenditure guidance for the year, while highlighting improving trading conditions during the first half of 2026.
The packaging and paper group generated EBITDA of €167 million in the second quarter, including a negative €43 million fair value adjustment related to its forestry assets. The result was above the Bloomberg consensus forecast of €160 million.
Capital Expenditure Guidance Reduced
Mondi revised its maintenance spending outlook lower, reducing expected expenditure for the year to €80 million from its previous guidance of €100 million. After investing €20 million during the first half, the company expects to spend the remaining €60 million in the second half of 2026.
The group also cut its capital expenditure guidance to between €500 million and €550 million, compared with previous expectations of around €550 million.
Meanwhile, finance cost guidance was left unchanged at €125 million, while depreciation and amortization guidance was lowered to €475 million from the previous range of €515 million to €525 million.
Pricing Actions Support Improving Trading Conditions
Mondi said business performance strengthened throughout the first half of the year as pricing initiatives helped offset rising input costs, particularly higher wood prices in Central Europe and increased energy expenses.
The company expects the full earnings benefit from recent price increases in corrugated packaging and industrial bags to be realized during the second half of 2026 due to the normal delay between price implementation and financial impact. Additional pricing measures are also planned for September.
Impairments Weigh on Results
During the period, Mondi recognized total impairments of €296 million.
The largest charge was a €206 million impairment related to its new Duino mill in Italy, which has annual production capacity of 420,000 tonnes and is currently increasing output. The company invested €240 million in capital expenditure and acquisition costs for the project.
A further €39 million impairment was recorded against Mondi’s office paper mill in Austria.
Germany remains one of Mondi’s largest markets, accounting for approximately 18% of group sales, while between 15% and 18% of revenue is generated from customers in the building and construction sector.
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