Verallia (VRLA) Q4 2025 earnings summary

Executive summary

• Revenue declined 3.6% year-over-year to €3,331 million in 2025, with organic growth at -2.8% and adjusted EBITDA down 17.8% to €692 million (margin 20.8%).

• Net income was €93 million, impacted by exceptional asset depreciation, with EPS at €0.77; excluding impairments, net income would be €121 million (EPS: €1.00).

• Free cash flow doubled to €166 million, driven by strict CapEx and working capital control, despite lower EBITDA.

• SBTi validated the net zero 2040 trajectory, with the group pioneering sustainability in glass packaging.

• Industrial adaptation plans in Europe target overcapacity, with site closures and furnace shutdowns in Germany, France, and the UK.

Financial highlights

• Q4 revenue fell 7.1% year-over-year to €763 million; Q4 adjusted EBITDA was €161 million, down 20% year-over-year, margin at 21.1%.

• Capital expenditure was €259 million (7.8% of sales), down from €323 million in 2024; strategic CapEx at €97 million (2.9% of sales).

• Net debt at year-end was €1,861 million, leverage at 2.7x adjusted EBITDA, up from 2.1x in 2024.

• Dividend of €1.00 per share proposed, with option for payment in cash or shares; major shareholders opting for shares to limit cash outflow.

• Free cash flow reached €166 million, up from €83 million in 2024.

Outlook and guidance

• 2026 expected to see market stability but subdued conditions, with flat demand in Europe and growth in Latin America.

• Adjusted EBITDA guidance for 2026 is around €700 million; free cash flow target is €220 million, excluding restructuring cash out.

• Restructuring plan to be implemented in H1 2026, with 50% of savings realized in 2026 and full impact in 2027.

• CapEx to remain around 8% of sales, with no new capacity investments planned.

• Focus on competitiveness, cash generation, and deleveraging.