Ahlstrom Oyj (AM1S) Q2 2025 earnings summary

Executive summary

• Strong financial performance in Q2 2025, with robust comparable EBITDA, high margins, and solid operating cash flow despite market volatility and currency headwinds.

• Enhanced business portfolio through the formation of the Performance Materials cluster and the acquisition of Stevens Point, increasing focus on specialty markets and US smart packaging.

• Integration of Stevens Point is progressing well, strengthening US market presence and expected to deliver significant cost and revenue synergies.

• Several product innovations and new launches advanced the sustainability agenda and supported customer transitions.

• Received binding offer for the Abrasives business, expected to close by year-end, further optimizing the portfolio.

Financial highlights

• Q2 2025 net sales were EUR 744.8m, down 4% year-over-year on a comparable basis; comparable EBITDA increased to EUR 123m (16.5% margin, up from 14.7%).

• Pro forma Adjusted EBITDA (LTM) reached EUR 593.3m, including full-year Stevens Point contribution and synergies.

• Operating cash flow was EUR 27m, or EUR 53m excluding one-time acquisition costs; free cash flow in H1 2025 was EUR 197m.

• CapEx remained at a sustainable level, with full-year guidance of EUR 150–160m.

• Adjusted net indebtedness increased to EUR 2,260m (from EUR 1,868.7m at end-2024), mainly due to the Stevens Point acquisition.

Outlook and guidance

• No significant volume recovery expected in Q3, with US markets remaining soft and Europe stable; management remains focused on innovation, operational efficiency, and sustainability-driven product innovation.

• Integration of Stevens Point expected to deliver significant synergies with limited integration risk.

• Pricing discipline remains strong, with about 50% of business indexed; some deflationary pricing expected due to contract lags.

• Deleveraging is a key focus following the Stevens Point acquisition.