Mondi Reports Q2 Earnings Amid Cost Pressures and Operational Adjustments
Mondi reported an underlying EBITDA of €379 million for the first half of 2026, driven by stronger volumes and cost controls but offset by lower selling prices and higher input costs. The company faces ongoing challenges from rising wood and energy expenses in Central and Eastern Europe due to inflation linked to geopolitical tensions. Despite these pressures, Mondi has raised packaging prices and entered Q3 with strong order books. Mondi reduced its full-year capital expenditure guidance to approximately €500 million while maintaining net debt at €2.6 billion. The company generated €347 million in operating cash flow during the period. It also recorded a significant non-cash impairment of €296 million, primarily related to the Duino mill. Operational restructuring includes six converting-plant closures and job reductions as part of efforts to shift production toward more efficient sites. Group CEO Andrew King highlighted that pricing actions and cost discipline have helped mitigate margin pressures. CFO Mike Powell noted continued volatility in energy costs and expected a headwind from rising wood prices, which could impact the second half by €30 million–€35 million.
Topics: capital expenditure cost pressures EBITDA operating cash flow plant closures