MHP SE GDR RegS (MPQ) Q2 2026 Earnings Report

The call presented a resilient and diversified business with strong revenue growth, stable first-half adjusted EBITDA, expanding European operations, improved vegetable oil performance and adaptive export routes. However, these positives were offset by a $57 million net loss, lower operating profit and margins, sharply weaker poultry profitability, Ukrainian logistics and infrastructure disruptions, higher logistics costs, lower agricultural prices, a reduced full-year EBITDA outlook of approximately $420 million to $450 million, and refinancing requirements. The positive operational developments and resilience were substantial, but the financial and operating challenges were also significant and broadly balanced the highlights.

For 2026, MHP expects EBITDA of approximately $420 million, $450 million, CapEx of around $220 million, $240 million, including maintenance CapEx, and investment in working capital of around $20 million, $30 million; poultry export price has shown gradual recovery, but MHP does not expect a quick return to the peak level seen during the Q2 and Q3 last year, while lower poultry production costs are expected starting mainly from Q4, and the European operating segment is expected to have broadly stable poultry and processed meat prices, continued sales volume growth and steady growth in EBITDA over the course of the year. As of the fourth quarter, lower-priced corn and wheat are expected to support better chicken production costs, with a positive effect during the 9 months 2027, while agricultural EBITDA could be weighed if lower grain and oilseed prices persist; in Europe, UVESA is expected to have double digit profitability in 2026, but not 15%, against a target of 15% EBITDA margin.