Ontex cuts 2026 profit outlook to €143–148 million as third-quarter profit falls 49%

Key Facts

Ontex cut its 2026 adjusted EBITDA forecast to a range of €143–148 million, from €165–180 million previously, after third-quarter profit fell 49% year on year to €25.9 million. In a statement dated October 28, the company said the quarter was affected by a sharp increase in input costs and the lag between those costs rising and pricing measures taking effect. Revenue was €427.9 million, down 3.9% year on year, compared with profit of €50.6 million and revenue of €445.4 million in the third quarter of 2025. Ontex estimated the net impact of higher raw material and other input costs on profit at about €18 million compared with the same period. It also said raw material and transport costs reached their highest levels of the year, up about 10% from the start of the year. The chief executive said the disappointing quarterly results were mainly affected by "the time lag between rising input costs and the accelerating impact of our pricing measures."

On a like-for-like basis, revenue fell 4% from the strong third quarter of 2025, with volumes down 5%, while price and mix contributed positively by 1%, the company said. The divergence between sales and profitability highlights the severity of margin pressure during the period, as the contribution from price and mix was limited relative to the impact of input costs. Baby care sales volumes fell 9%, which the company attributed mainly to the termination of some external contracts and lower sales of baby diapers in Europe amid continued weak demand. Women's care volumes declined 12%, reflecting the termination of contract manufacturing agreements in North America and some external contracts. Adult care volumes were broadly stable. The company said the overall volume decline, together with higher costs and the slow pass-through of pricing effects, contributed to the annual forecast reduction.

Meanwhile, the Focus to Value program generated savings of €16 million in the third quarter and €45 million in the first nine months of 2026. In July, Ontex raised the program's total savings target to €240 million by the end of 2028, adding €40 million to the previous target. The program was part of the company's efforts to address cost pressures, but quarterly savings did not prevent adjusted profit from falling to €25.9 million from €50.6 million a year earlier. In July, the company had cut its 2026 profit forecast to €165–180 million, compared with adjusted profit of €176 million in 2025. The new reduction puts the forecast range below the level announced in July, following the third-quarter results decline. The company said it takes time for price increases to offset the impact of higher inputs.

Ontex cut its 2026 free cash flow forecast to a range of negative €10 million to zero, from the previous range of negative €25 million to negative €10 million. It also raised its year-end maximum leverage target to 3.75 times, from 3.5 times previously. Net financial debt was €535.8 million on September 30, 2026, compared with €577 million on December 31, 2025, while liquidity was €272 million. The company said the placement of its Russian subsidiary under temporary administration pursuant to a presidential decree dated October 15, 2026, will result in its deconsolidation. According to Ontex, the measure will reduce net financial debt by about €10 million on a pro forma basis and lower expected fourth-quarter adjusted profit by about €2 million. The subsidiary's impact is reflected in the group's fourth-quarter outlook.

Ontex expects fourth-quarter adjusted EBITDA to range between €39 million and €44 million. It said raw material costs will be slightly lower than their elevated third-quarter level, with a greater contribution from pricing. This follows a third quarter in which those costs were about 10% above their level at the start of the year, while the company estimated the net impact of higher inputs on profit during the period at about €18 million compared with the previous year. Full-year and fourth-quarter 2026 results are scheduled for release on February 11, 2027. The company set April 30, 2027, for publication of its first-quarter results for the same year, and May 5, 2027, for its annual general meeting. The February disclosures will be the first announced date for presenting full-year results and fourth-quarter performance.