Earnings call transcript: Mayr-Melnhof H1 2026 profit improves as stock slips

Mayr-Melnhof reported a first-half 2026 profit of EUR 90 million, as sales edged lower and faced pricing pressure, particularly in its Board & Paper division. The Austrian packaging company's adjusted EBITDA was EUR 200 million, matching the previous year on a like-for-like basis but better than the second half of 2025. Despite the stronger margins, the stock fell 2.85% to $78.5 from $80.8, indicating investor caution.

The company's first-half performance was stable on a comparable basis after adjusting for the June 2025 TANN sale. Sales were slightly lower than a year earlier due to lower pricing, but profitability improved through cost discipline and efficiency gains. The strongest progress was seen in Pharma & Healthcare Packaging, where EBITDA margin improved by 200 basis points to 14%. Food & Premium Packaging also showed slight profit improvement.

Board & Paper faced challenges due to overcapacity and weak pricing, especially in virgin cartonboard. CEO Peter Oswald stated that the company's cost position remains strong, with 80% of Board & Paper capacity within the first two quartiles of the cost curve. Utilization improved to an average of 87%, helping offset the soft market.

InvestingPro data highlights a healthy balance sheet with a debt-to-equity ratio of 0.67 and a GOOD Financial Health score. The company maintains dividend payments for 30 consecutive years. The stock's beta of 0.6 reflects its low volatility, and the company has paid dividends for 30 straight years, as noted in InvestingPro Tips.

Management emphasized that the Fit-For-Future program is ahead of plan and could deliver over EUR 330 million in cumulative earnings improvement by 2027, surpassing the earlier EUR 250 million target. Higher transport and energy costs, maintenance shutdowns, and pricing pressure in Board & Paper are expected to weigh on sentiment in the second half of 2026.

For Board & Paper, the company anticipates a roughly stable operating result before maintenance, with a EUR 35 million negative impact from planned shutdowns. Capital spending will remain high through 2026 and 2027 due to the Kwidzyn mill projects, but should normalize afterward.