Altri (ALTR) Q1 2025 earnings summary

Executive summary

• Global pulp demand rose 4.8% year-over-year in Q1 2025, led by China and Asia, while Europe and North America saw negative growth after a strong 2024.

• Revenues reached €203.6M, down 8.6% year-over-year but up 9.7% sequentially, reflecting lower pulp prices and some volume recovery.

• EBITDA fell 41% year-over-year to €29.4M, with a margin of 14.5%, due to lower pulp prices, energy instability at Selby/Celbi, and ramp-up costs at Biotech/Biotek.

• Strategic projects include full Biotech/Biotek conversion to dissolving pulp by end-2026 and acetic acid/fructose/furfural project at Kaima/Caima launching in early 2026.

• Acquisition of Rinalia/Greenalia Forest and Logistics in May 2025 to secure raw material supply and strengthen presence in Galicia.

Financial highlights

• EBITDA margin dropped to 14.5% in Q1 2025 (down from 22.5% in 1Q24).

• EBIT and net profit declined, with net profit at €7.6M (-64.7% YoY).

• Net debt at €211.0M at end-March 2025, reduced by €3M from end-2024.

• Return on capital (ROC) remained strong at 21%.

• Net Debt/EBITDA LTM: 1.1x.

Outlook and guidance

• Expect normalization of cash costs and improved efficiency as Selby/Celbi turbine resumes and Biotech/Biotek ramp-up continues.

• Stable outlook for variable costs in 2025, with CapEx expected to be above €60M.

• Over 50,000 tons of dissolving pulp targeted for 2025; full Biotech/Biotek conversion by end of 2026.

• Acetic acid and fructose/furfural project at Kaima/Caima to start in early 2026.

• Short-term price pressure expected due to US tariffs and Chinese demand slowdown in 2Q25.