Mayr-Melnhof Karton (MMK) H2 2025 (Q&A) earnings summary

Executive summary

• Adjusted operating profit increased by 15% year-over-year on a like-for-like basis, excluding the Tann divestiture, supported by the Fit-For-Future (FFF) program contributing €70 million in 2025 and targeting over €250 million in savings by 2027.

• Market leader in fiber-based consumer packaging with a diversified portfolio and global presence.

• Balance sheet strengthened with higher equity ratio and lower net debt; dividend increased by 11% to €2.00 per share, reflecting a new payout policy.

• Weak market conditions and structural overcapacity persisted throughout the year, but management remains confident in long-term market potential.

• Absolute CO2 emissions reduced by 11% through renewable energy and efficiency measures.

Financial highlights

• 2025 sales were €3,885.3 million, down 4.8% year-over-year, mainly due to the TANN divestment.

• Adjusted operating profit rose 2.8% to €195.4 million; pro forma excluding TANN up 15%; adjusted operating margin improved to 5.0%.

• Adjusted EBITDA was €418.2 million (margin 10.8%), nearly flat year-over-year.

• Net profit fell 30.3% to €77.0 million due to higher tax expense; EPS dropped 28.7% to €3.86.

• Free cash flow declined sharply to €11.1 million from €302.2 million, impacted by higher capex and lower operating cash flow.

Outlook and guidance

• FFF program savings target raised to over €250 million by 2027, with €180 million additional savings to be delivered between 2025 and 2027.

• 2026 investments will focus on competitiveness and renewable energy, with capex around €250 million.

• Q1 and Q2 2026 results will be negatively impacted by higher energy prices due to geopolitical tensions; maintenance standstills in Board & Paper scheduled for Q3 and Q4 with €40 million in related expenses.

• Management expects capacity rationalization in both recycled and virgin cartonboard segments by mid to late 2026.

• Monitoring Middle East risks; two plants in the region contributed 2% of sales and 6% of adjusted EBITDA in 2025.