Befesa (BFSA) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA for H1 2025 reached €112 million, up 9% year-on-year, with margin improvement to 19% in Q2 2025 from 16% in Q2 2024, despite lower volumes from annual maintenance and weak aluminum margins.

• Revenue declined 3% year-over-year to €602 million in H1 2025, mainly due to lower steel dust volumes, partially offset by favorable pricing.

• Net profit attributable to shareholders doubled to €40.1 million, with EPS up 100% to €1.00.

• Financial leverage reduced to 2.7x in June 2025 from 3.4x a year earlier.

• Operating cash flow reached €64 million, down 8% year-on-year, mainly due to higher taxes paid.

Financial highlights

• Steel dust segment achieved €96.3 million adjusted EBITDA in H1, a 19% increase year-on-year, with margin rising to 24.8%.

• Aluminum salt slag segment EBITDA was €16.1 million, down 13% year-on-year, with margin at 28.1%.

• Secondary aluminum EBITDA fell 44% to €2.2 million, with margin compressed to 1.2%.

• Net debt at €601 million, with cash on hand of €96.5 million and total liquidity near €200 million.

• Capital expenditures were €32.4 million in H1 2025, down 34% year-on-year.

Outlook and guidance

• Full-year 2025 EBITDA guidance confirmed at €240–265 million, representing 13–24% growth year-on-year.

• Net leverage targeted below 2.5x by year-end; EPS expected above 2, at least 57% higher year-on-year.

• CapEx for 2025 guided at €80–90 million, with focus on Palmerton and Bernburg projects.

• Expect higher steel dust volumes in H2, stable salt slag, but continued challenges in secondary aluminum.

• Stronger H2 2025 anticipated, driven by higher EAF dust volumes and new US contracts.