...This report does not constitute a rating action. We expect higher revenues in 2026 as volume declines are offset by the pass-through of higher raw material costs. Mauser Packaging Solutions Holding Co.'s volumes declined about 1.8% in the fourth quarter and about 0.5% in 2025. Soft demand across its key end markets resulted in volume declines across many of its products. We expect the demand environment will remain weak in 2026, due in part to the likely economic implications of the war in the Middle East and related oil price shock. Our baseline forecast assumes a temporary, supply driven oil shock where West Texas Intermediate oil prices peak in March and April, before moving back down to $65 by the fourth quarter. Resin prices, a key input cost for Mauser, have risen in tandem with oil prices. We assume Mauser will effectively pass through fluctuations in its resin costs and forecast a low- single-digit percent increase in net sales in 2026 despite lower volumes. We forecast reported...
