Grigeo Group's Q2 2026 results were once again weaker than a year ago. Despite strong revenue growth, net profit declined 13% YoY in Q2. However, this was a significantly smaller drop than in Q1, when net profit fell 49% YoY.

For the first half of 2026, Grigeo Group generated €6.3M in net profit, down 31% YoY.

Net profit

Grigeo Group's Q2 2026 revenue reached €77.7M, remaining broadly unchanged from the first quarter but increasing 35% YoY.

The paper segment remained the main growth driver, with revenue surging 64% YoY. Meanwhile, revenue from the raw material for corrugated cardboard and related production segment declined 8% YoY.

Results by segments, 2026 Q2

Profitability remained under pressure as costs grew faster than revenue.

In Q2, cost of sales increased 39% YoY, while operating expenses rose 45% YoY, compared with the 35% increase in revenue. As a result, strong top-line growth did not translate into higher profit.

Q2 operating margin

Grigeo Group's free cash flow remained negative both in Q2 and over the last 12 months.

Quarterly funds from operations improved, rising 6% YoY to €7M. However, cash generation was outweighed by continued heavy investment in long-term assets, which reached €11M during the quarter.

Funds from operations

Over the last 12 months, Grigeo Group generated €26.5M in FFO. Although the company's EV/FFO multiple increased to 5.7x, the valuation still appears relatively attractive in the context of the Baltic equity market.

Other valuation multiples also increased, with P/E reaching 9.9x and EV/EBITDA rising to 5.1x.

Grigeo Group's PLY Value Score stands at nearly 8, indicating a relatively reasonable valuation based on PLY Markets' methodology. However, the company's overall PLY assessment is held back by weaker free cash flow and growth metrics.