Mondi’s Stock Price up After Strong Earnings Report

Mondi’s latest full-year results for 2025 have been well-received by investors, evident in the uptick of Mondi (LON: MNDI) shares trading higher by approximately 1.6% following the earnings report. Despite facing a challenging cyclical downturn, Mondi managed to deliver a resilient performance, with its underlying EBITDA standing at €1,001 million.

Group revenue for Mondi saw a 3% increase from €7,416 million in the previous year to €7,663 million in 2025. However, the underlying EBITDA experienced a slight 5% decrease from €1,049 million in 2024 to €1,001 million in 2025. Basic underlying earnings per share also took a hit, dropping to 56.5 euro cents compared to the prior year’s 82.7 euro cents.

While the revenue showed a modest increase, the profitability metrics in Mondi’s financial summary experienced some contraction. This was attributed to the impact of lower paper prices and challenging macroeconomic conditions, as highlighted by the company.

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 commitment to bringing the dividend back in line with its cover policy, prioritizing financial prudence and investment in core operations.

Despite the setbacks, cash generated from operations saw an 11% increase to €1,072 million. However, net debt to underlying EBITDA increased to 2.6 times in 2025 from 1.7 times the previous year. Return on capital employed (ROCE) also decreased to 6.7% from 9.6%.

Andrew King, Mondi Group CEO, emphasized the company’s resilience amidst a prolonged cyclical downturn and a challenging economic environment. With a focus on operational excellence and cost discipline, Mondi managed to deliver a resilient financial performance in 2025.

Looking ahead to 2026, uncertainties remain regarding geopolitical and macroeconomic conditions. However, Mondi remains confident in its ability to navigate these challenges through disciplined volume growth, leveraging recent capacity expansions, robust margin management, and cost optimization.

Mondi’s proactive approach to cost optimization, as seen through plant closures and integration efforts, underscores its dedication to enhancing efficiency and profitability. Investors are reassured by Mondi’s confidence in overcoming market headwinds through disciplined volume growth and strong margin management, positioning the company for potential long-term value creation in the market.