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Mondi Beats Q2 EBITDA Estimates, Trims Capex Guidance Amid Impairments
Summary
The packaging and paper group reported second-quarter earnings that surpassed analyst expectations, while also announcing significant asset impairments and a reduction in its full-year capital expenditure forecast.
Mondi plc (MNDI) reported second-quarter earnings that exceeded analyst estimates and lowered its capital expenditure guidance for the year, according to a company announcement on Thursday. The results reflect improving trading conditions and pricing actions intended to offset rising input costs.
Earnings Beat and Revised Outlook
The company posted a second-quarter EBITDA of €167 million, a figure that came in 4% ahead of the Bloomberg consensus estimate of €160 million. This result included a negative forest fair value adjustment of €43 million.
Alongside the earnings release, Mondi updated its financial guidance for the year:
- Capital expenditure (capex): Lowered to a range of €500-€550 million from a previous forecast of €550 million.
- Maintenance spending: Reduced to €80 million from €100 million.
- Depreciation and amortization: Cut to €475 million from a prior range of €515-€525 million.
- Finance costs: Guidance remains unchanged at €125 million.
Operational Performance
AdMondi stated that trading conditions improved throughout the first half of 2026. The company implemented pricing actions to counter higher input costs, specifically citing increased wood costs in Central Europe and elevated energy expenses.
Due to typical lag effects, the full financial benefit of recent price hikes in corrugated board and sack products is expected to materialize in the second half of the year. Mondi noted that further price announcements are scheduled for September.
Significant Asset Impairments
The company also recorded substantial one-time charges, with impairments totaling €296 million. The largest portion of this was a €206 million impairment related to its new 420,000-ton Duino mill in Italy, which is currently ramping up production. Mondi had previously spent €240 million on capital expenditure and acquisition costs for the facility.
An additional impairment of €39 million was recorded for its office paper mill in Austria. These non-cash charges significantly impact the company's reported profitability for the period.
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