Afarak Group (AFAGR) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 declined 25.9% year-over-year to EUR 57.1 million, reflecting lower demand and reduced sales volumes, particularly in Europe due to sectoral weakness and geopolitical disruptions.

• EBITDA dropped to EUR 1.6 million (H1 2025: EUR 6.9 million), with a margin of 2.8% (H1 2025: 9.0%). EBIT was EUR 0.5 million (H1 2025: EUR 5.9 million).

• Net loss for the period was EUR -0.7 million, compared to a profit of EUR 2.4 million in H1 2025.

• Cash flow from operations improved to EUR 1.5 million (H1 2025: EUR 0.1 million).

Financial highlights

• Revenue: EUR 57.1 million (H1 2025: EUR 77.1 million).

• EBITDA: EUR 1.6 million (H1 2025: EUR 6.9 million); EBITDA margin: 2.8%.

• EBIT: EUR 0.5 million (H1 2025: EUR 5.9 million); EBIT margin: 0.8%.

• Net loss: EUR -0.7 million (H1 2025: EUR 2.4 million).

• Earnings per share: EUR 0.00 (H1 2025: EUR 0.01).

• Cash and cash equivalents: EUR 4.9 million at 30 June 2026.

Outlook and guidance

• Demand for standard grade low carbon ferrochrome expected to improve post-summer due to low industry inventories.

• Weak US dollar and cheap imports from Kazakhstan, Turkey, Brazil, and India to continue pressuring margins and prices.

• Specialty segment may see stronger demand recovery; South African chrome ore business expected to remain stable.

• Chrome ore demand in China is growing, with prices rebounding after Q2 2026 decline.