Mondi Q1 2026 Trading Update: EBITDA Stable Amid Market Pressures; Cost Actions and Plant Closures Announced

Mondi reported Q1 2026 underlying EBITDA of €212 million, broadly stable compared to €214 million in Q4 2025. This includes a €8 million forestry fair value gain.

However, performance remained under pressure due to:

• Lower average selling prices

• Rising energy-related input costs toward the end of the quarter

• Margin pressure in converting operations

Operational Performance

• Sales volumes increased sequentially in both Corrugated Packaging and Flexible Packaging divisions

• Growth supported by:

  • Recent capacity expansions

  • Diversified geographic and product exposure

• No planned maintenance shutdowns during the quarter

Segment highlights:

• Corrugated Solutions & Paper Bags: Margin pressure

• Consumer Flexibles: Stable performance due to resilient end-markets

Market Environment & Cost Pressures

• Heightened geopolitical tensions in the Middle East increased volatility

• Limited direct exposure, but indirect impacts included:

  • Higher energy, raw material, and logistics costs

• Mondi has initiated pricing actions, expected to fully reflect in Q3 2026

Forestry Outlook

• Following reduced wood prices in South Africa:

  • Full-year 2026 forestry fair value gain expected to be nil, assuming stable market conditions

Restructuring & Layoffs

Mondi announced further plant closures and workforce reductions:

• Closure of 3 converting plants:

  • Hungary (Consumer Flexibles)

  • Poland & Germany (Corrugated Solutions)

• Headcount reduction: 450 employees in 2026

• Total recently announced closures now 6 plants

• Customers will be shifted to other facilities in the network

Capital Expenditure & Cash Flow

• Continued disciplined capital expenditure control

• Strong focus on:

  • Cash flow optimisation

  • Working capital management

(No major new capex projects announced in this update.)

Strategy & Future Outlook

Mondi is focusing on:

• Operational excellence programs

• Cost control and margin management

• Production footprint optimisation

Outlook

• Challenging conditions expected to persist into Q2 2026

• Pricing measures expected to support earnings from Q3 2026 onward

CEO Andrew King stated that despite ongoing headwinds, the company remains confident in navigating the environment through disciplined execution and strategic actions.

Key Takeaways

• Stable EBITDA despite difficult environment

• Volume growth offset by pricing and cost pressures

• No shutdowns in Q1, but structural plant closures underway

• 450 job cuts announced

• Pricing recovery expected in Q3

• No major capex or M&A activity disclosed