Verallia (VRLA) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue declined 1.4% year-over-year to €1,699 million, mainly due to lower sales prices and volumes in Germany, while most other countries saw growth; adjusted EBITDA remained stable at €352 million (20.7% margin), and free cash flow increased to €102 million.

• Net income dropped sharply to €27 million, mainly due to restructuring costs related to industrial footprint adaptation, while net leverage improved to 2.6x and net debt decreased to €1,779 million.

• Major industrial adaptation projects were completed in Europe, including plant and furnace closures, with no operational disruptions and expected annual cost savings of €40 million.

• S&P downgraded the credit rating from BBB- to BB+ with a stable outlook.

• Shareholders approved a €1 per share dividend, with most opting for payment in shares, resulting in a capital increase.

Financial highlights

• H1 2026 revenue: €1,699 million (-1.4% YoY); adjusted EBITDA: €352 million (+0.2% YoY, 20.7% margin); net profit: €26.7 million (-60.5% YoY); adjusted net income (excluding restructuring): €70 million.

• Free cash flow rose to €102 million, up €36 million year-over-year, with cash conversion at 74.2%.

• Capex was €91 million (5.3% of sales), with recurring capex up and strategic capex down.

• Net debt at period end was €1,779 million, with a net debt/EBITDA ratio of 2.6x.

Outlook and guidance

• 2026 guidance confirmed: adjusted EBITDA around €700 million and free cash flow around €220 million, excluding restructuring cash-outs; capex expected around 8% of sales.

• Guidance assumes no significant deterioration in the Middle East situation.

• No further capacity reductions or price cuts planned; focus remains on cost control, competitiveness, and deleveraging.