Mayr-Melnhof Karton Reports Resilient First-Half 2026 Earnings, Raises Fit-For-Future Target

Mayr-Melnhof Karton AG (MM) reported adjusted EBITDA of EUR 200.2 million for the first half of 2026, broadly matching the prior-year level on a like-for-like basis excluding the TANN Group and improving from EUR 187.7 million in the second half of 2025.

On a pro forma basis excluding TANN, sales declined 4.7% year on year to EUR 1,849.3 million, while adjusted EBITDA decreased 3.5% from EUR 207.4 million. The adjusted EBITDA margin increased to 10.8% from 10.7%. Adjusted operating profit was EUR 89.8 million, compared with EUR 93.7 million in the prior-year period. Cash flow from operating activities improved to EUR 145.1 million, while free cash flow reached EUR 37.0 million.

MM said its Fit-For-Future programme contributed EUR 105 million during the first half, helping to mitigate lower selling prices in the Board & Paper division. The company has raised its expected aggregated P&L benefit from the programme by 2027 to more than EUR 330 million, compared with a previous target of more than EUR 250 million. A further contribution of more than EUR 100 million is expected in the second half of 2026.

Performance varied across divisions. Pharma & Healthcare Packaging increased adjusted EBITDA by 13.7% to EUR 45.6 million, supported by growth in North America and Ireland, productivity improvements and customer and product mix. Food & Premium Packaging generated adjusted EBITDA of EUR 97.9 million, up 0.9% on a pro forma basis excluding TANN, despite lower volumes and soft folding-carton demand. Board & Paper adjusted EBITDA declined 19.3% to EUR 56.8 million as average selling prices remained significantly lower, although earnings improved sequentially from the second half of 2025.

For the second half, MM expects subdued consumer demand and higher transport, energy, chemical, wood and paper-for-recycling costs to continue. Annual maintenance shutdowns at MM Kwidzyn and MM Kotkamills are expected to impact third-quarter operating profit by approximately EUR 35 million.

Key capital expenditure projects remain on track, including approximately EUR 100 million of investments at MM Kwidzyn, expected to generate around EUR 30 million in annual operating profit improvement from 2027 onwards. Packaging expansion projects in Romania and the United States are also progressing within budget. Subject to regulatory approvals, MM said its planned acquisition of the Arnsberg cartonboard mill offers potential synergies.