French glass packaging firm Verallia's Q3 revenue falls on lower volumes

Overview

• France glass packaging firm's Q3 revenue fell 2.1% yr/yr due to lower volumes

• Adjusted EBITDA margin for Q3 was 20.8%, slightly down from a year earlier

• Company confirmed 2026 outlook for adjusted EBITDA of €700 mln and free cash flow of €220 mln

Outlook

• Verallia confirms 2026 adjusted EBITDA guidance of around €700 mln

• Company expects 2026 free cash flow of around €220 mln, excluding restructuring cash-outs

• Company plans to keep 2026 capex at about 8% of sales

Result Drivers

• LOWER VOLUMES - Co said Q3 volumes declined, mainly due to an unfavorable Summer in Europe and expected weakness in Germany

• LIMITED PRICE EFFECT - Co said price effect faded over the year and was very limited in Q3

• COST SAVINGS - Co said performance improvement plan and restructuring measures delivered cost savings in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-paper containers & packaging peer group is "buy."

• Wall Street's median 12-month price target for Verallia SA is €21.20, about 16.4% above its October 27 closing price of €18.21

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Oct 27 - France's Worldline tops quarterly estimates as it returns to revenue growth

• Oct 27 - French consumer confidence hits a 2013 low in October amid protests

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)