Mayr-Melnhof Karton (MMK) H1 2026 earnings summary

Executive summary

• Adjusted EBITDA for H1 2026 nearly matched prior-year levels (like-for-like, excl. TANN), with sequential improvement over H2 2025, despite subdued demand and lower prices in Board & Paper.

• The Fit-For-Future programme contributed EUR 105 million in H1 2026, exceeding expectations and mitigating lower prices, enhancing cost competitiveness across divisions.

• Pharma & Healthcare Packaging saw strong growth, Food & Premium Packaging remained stable or improved, and Board & Paper improved sequentially but was down year-over-year.

• Major capex projects in cost and energy efficiency are progressing as planned.

• Planned acquisition of the Arnsberg board mill is expected to provide synergy potential and strengthen the core cartonboard business.

Financial highlights

• Group sales for H1 2026 were EUR 1,849.3 million, down 8.9% year-over-year (incl. TANN), with adjusted EBITDA at EUR 200.2 million, down 13.1% year-over-year, but up 6.6% sequentially.

• Adjusted operating profit was EUR 89.8 million, down 23.1% year-over-year, but up 13.9% sequentially.

• Free cash flow improved to EUR 37 million from negative EUR 205.4 million a year earlier.

• Cash flow from operating activities was EUR 145 million.

• Net profit margin dropped to 1.7% from 8.1% year-over-year; earnings per share were EUR 1.60, down from EUR 8.29.

Outlook and guidance

• Market conditions are expected to remain challenging in H2 2026, with subdued demand and higher input costs, including from the Iran war.

• Annual maintenance at MM Kwidzyn and MM Kotkamills will impact Q3 operating profit by approximately EUR 35 million.

• The Fit-For-Future programme is expected to contribute over EUR 100 million in H2 2026, with the total P&L benefit target for 2027 raised to over EUR 330 million.

• CapEx program will continue until end of 2027, after which investment levels will decrease.

• Planned acquisition of the Arnsberg mill and capex in Kwidzyn, Romania, and the US are expected to boost profits and synergies from 2027.