Befesa (BFSA) Q2 2026 earnings summary

Executive summary

• Adjusted EBITDA for H1 2026 rose 11% year-over-year to €124 million, driven by strong EAF steel dust volumes, favorable zinc prices, and robust US and European performance.

• Net profit attributable to shareholders increased 12.4% to €45 million, with EPS up to €1.13.

• Revenue declined 2% year-over-year to €589 million, mainly due to unfavorable EUR/USD exchange rates, despite higher volumes and prices.

• EBITDA margin improved to 22% in Q2 2026 from 19% in Q2 2025.

• Net leverage reduced to x2.18 as of June 2026, down from x2.70 in June 2025, reflecting ongoing deleveraging.

Financial highlights

• Steel dust segment adjusted EBITDA rose 8% to €104 million, with margin up to 27%, driven by higher LME zinc prices and volume growth.

• Aluminium salt slag revenues grew 6.8% to €61 million, EBITDA up 9.7% to €18–20 million.

• Secondary aluminium alloys volumes fell 4.7–5% to 79–79.1 kt, but metal margins improved.

• Operating cash flow increased 10% to €71 million; capex for H1 was €37.8–46 million, with full-year capex expected at €70 million.

• Net debt at €555 million, cash on hand at €134 million; dividend of €1/share (€40 million) approved.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance confirmed at €250–270 million, implying 3–11% growth.

• EPS expected above €2.20; leverage targeted at ~x2.0 by year-end and below x2.0 going forward.

• Capex for 2026 expected at €70 million, with maintenance at €45 million and growth (Bernburg) at €25 million.

• Steel dust volumes in Europe stable, US to grow; salt slag and secondary aluminium volumes stable, with margin improvement expected in H2.

• Inflation, FX, and energy costs (stable coal/electricity, rising natural gas) remain headwinds.