Befesa (BFSA) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA for Q1 2026 rose 4% year-over-year to €58 million, with margin improving to 20% from 18% and net income up 11% to €21 million; operating cash flow increased 12% to €38 million.

• EPS increased 11% year-over-year to €0.52, and leverage reduced to 2.25x from 2.78x, with net debt down 10% to €550 million.

• Revenue declined 7.5%–8% year-over-year to €285 million, reflecting market volatility, weaker aluminium, and FX effects.

• Both steel dust and aluminium segments contributed to growth, despite a challenging macroeconomic environment.

• Strategic focus remains on deleveraging, targeting net leverage reduction to around 2.0x by year-end 2026.

Financial highlights

• Adjusted EBITDA margin improved to 20.3% from 18.1% year-over-year; EBIT margin at 13.1%.

• EBIT rose 17.3% to €37.4 million; net profit attributable to shareholders increased 11.2% to €20.7 million.

• Operating cash flow reached €38.1 million, up 12.3% year-over-year; cash and cash equivalents at period end were €144.7 million, up 37.8%.

• Net debt decreased 10.2% to €550 million; net leverage improved to 2.25x from 2.78x.

• Capital expenditures totaled €21.1 million, mainly for Bernburg expansion.

Outlook and guidance

• FY 2026 adjusted EBITDA expected between €250 million and €270 million, a 3%–11% increase, driven by US volume growth and aluminium recovery.

• CapEx for 2026 projected at ~€70 million, with €45 million for maintenance and €25 million for growth (Bernburg expansion).

• Net leverage targeted at ~2.0x by year-end 2026.

• EPS projected above €2.2 for FY 2026, representing over 10% growth.

• Ongoing focus on free cash flow generation and disciplined capital allocation.