Befesa (BFSA) Q1 2025 earnings summary

Executive summary

• Q1 2025 adjusted EBITDA rose 15% year-over-year to €56 million, with revenue at €308 million (+3% YoY), and net income up 97% to €18.6 million, despite challenging macroeconomic conditions and plant maintenance stoppages.

• EPS increased 97% year-over-year to €0.47, and operating cash flow surged 134% to €34 million.

• Leverage improved to 2.78x (down from 3.4x YoY), with a target below 2.5x by year-end 2025 and a continued focus on deleveraging.

• Palmerton and Bernburg expansions are progressing as planned, while China expansion is paused due to market conditions.

Financial highlights

• Steel dust segment delivered €49.2 million adjusted EBITDA (+37% YoY), with margin rising from 19% to 25%, despite 9% lower throughput due to maintenance.

• Aluminum salt slag EBITDA was €7 million, down 29% YoY, with utilization at 93%; secondary aluminum EBITDA fell 43% to €1.6 million due to weak auto demand and higher energy costs.

• Operating cash flow reached €34 million (+134% YoY); cash on hand at quarter-end was €105 million, with total liquidity over €200 million.

• Net debt decreased to €612.7 million; capex for Q1 2025 was €15.8–18.1 million, down 8.7% YoY.

Outlook and guidance

• Full-year 2025 EBITDA expected between €240 million and €265 million, representing 13–24% growth year-over-year.

• EPS for 2025 expected to exceed €1.8, with strong free cash flow generation and net leverage targeted below 2.5x by year-end.

• Capex to remain below €100 million, focused on Palmerton and Bernburg projects; China expansion paused.