Altri (ALTR) Q2 2025 earnings summary

Executive summary

• EBITDA for Q2 2025 was €28.2M, down 61.9% year-over-year but stable sequentially, with margin improvement due to efficiency gains despite maintenance shutdowns.

• Total revenues in Q2 2025 were €169.3M, down 29.4% year-over-year and 16.8% sequentially, mainly due to lower pulp prices and sales volumes amid unfavorable global market conditions and US trade policy changes.

• Net profit in Q2 2025 was €6.4M, down 84.1% year-over-year and 15.4% below Q1 2025, reflecting the impact of lower prices, volumes, and adverse currency effects.

• Strategic acquisitions included a majority share in Aonic/AeoniQ™ and the completion of Greenalia Forest and Greenalia Logistics, supporting diversification into sustainable fibers and forestry expansion in Spain.

Financial highlights

• 1H25 total revenues were €373.0M, down 19.4% year-over-year; EBITDA was €57.6M, down 53.5%, with a margin of 15.5%.

• Net profit for 1H25 was €14.0M, a 77.3% decrease from 1H24.

• Net debt at end-Q2 2025 was €317.5M, up from €211.0M at end-Q1 2025, mainly due to dividend distribution, taxes, and working capital; Net Debt/EBITDA LTM was 2.1x.

• Cash flow reduced by 9% quarter-on-quarter and 5% year-on-year, with H1 2025 flat versus H1 2024.

• Total net investment in 1H25 was €20.9M, with 57% classified as ESG investments.

Outlook and guidance

• Volumes for the rest of 2025 expected to align with H1, targeting over 1.1 million tons annually, with no further scheduled maintenance shutdowns.

• Capital expenditure for 2025 projected at around €70M, with major projects extending into 2026.

• Net debt likely to remain above end-2024 levels, with some reduction expected from working capital normalization.

• Management anticipates market normalization and demand recovery into Q4 2025, with a focus on operational efficiency.

• Pulp prices in China are near marginal cost, suggesting potential stabilization and possible demand recovery; European prices are expected to follow with a lag.