Acerinox (ACX) Q1 2025 earnings summary

Executive summary

• Q1 2025 EBITDA reached €102 million, reflecting resilience amid market volatility and challenging conditions, with strong cash generation and a 29% production increase, notably 80% in Europe.

• Operating cash flow was €99 million, with a €6 million reduction in working capital despite higher activity.

• Net financial debt rose to €1.2 billion, up €75 million from Q4 2024, mainly due to Haynes acquisition and dividend payments.

• Integration of Haynes International is progressing well, with synergy targets raised to €75 million and full contribution to HPA segment.

• Geographical diversification and strategic investments in the US and Europe are seen as advantages amid deglobalization.

Financial highlights

• Revenue for Q1 2025 was €1,551 million, up 5% sequentially and 17% year-over-year.

• EBITDA margin held at 7%, unchanged from Q4 2024 but down from 11% in Q1 2024.

• EBIT was €53 million, down 26% sequentially and 55% year-over-year; profit after tax was €10 million, down 80% year-over-year.

• CapEx totaled €57 million, up from €36 million in Q1 2024, reflecting expansion plans.

• Free cash flow for Q1 2025 was €42 million.

Outlook and guidance

• Q2 2025 EBITDA is expected to exceed Q1, with a positive outlook for the first half of 2025.

• Full-year net debt target of 1.2x EBITDA likely to be achieved in two years, not by end-2025; year-end net debt expected around €1.7 billion.

• Break-even in Europe postponed to Q3 due to weak demand and low prices; US order book remains solid.

• Tariff changes and trade policy uncertainty continue to impact demand, especially in Europe.