Aquafil (ECNL) Q2 2025 earnings summary

Executive summary

• Achieved an EBITDA margin of 13.6% in H1 2025, surpassing plan targets and reflecting strong management and adaptability in challenging conditions.

• ECONYLⓇ and regenerated products accounted for 60.7% of fiber revenues, exceeding the 2025 target and highlighting a strategic focus on sustainability.

• Strong double-digit growth in U.S. carpet fibers and Engineering Plastics, while Asia Pacific volumes declined and Europe remained stable.

• Cost optimization and reorganization projects, especially in U.S. carpet collection and recycling, launched to drive further savings.

• Textile fiber volumes underperformed due to weak downstream demand.

Financial highlights

• H1 2025 revenues were €281.2M, down 2.4% year-over-year; Q2 revenues were €137.1M, down 2.5%.

• EBITDA rose 17.8% to €38.4M in H1 2025; Q2 EBITDA up 22.7% to €21.3M.

• Net profit reached €2.2M in H1 2025, reversing a €6.1M loss in H1 2024.

• EBITDA margin improved to 13.6% in H1 2025 from 11.3% in H1 2024.

• Net financial position at €218.7M as of June 30, 2025, with NFP/EBITDA ratio at 3.21x.

Outlook and guidance

• Margin growth and cost-saving initiatives, including U.S. plant reorganization, are expected to support profitability in H2 2025 and beyond.

• Volume growth targets (10-15%) for the year may not be fully reached, but margin improvements are expected to offset this.

• Visibility for H2 remains limited due to macroeconomic uncertainties, but focus remains on efficiency and profitability.

• Cost savings from U.S. reorganization to begin impacting results in H2 2025, with full benefits by 2027.

• Higher margins in Asia expected to continue due to lower raw material costs and ongoing cost reduction actions.