Befesa (BFSA) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered strong results, with adjusted EBITDA up 26.7–27% year-over-year and net income up 143–320% year-over-year; EPS rose 143% to €1.52.

• Nine-month 2025 adjusted EBITDA reached €174 million, up 15% year-over-year, with margin improvement to 21.3% in Q3.

• Financial leverage reduced to x2.59 in September 2025 from x3.36 a year ago, with a target below x2.5 by year-end.

• Palmerton plant expansion completed, supporting future US market growth; Bernburg expansion underway in Germany.

• Revenue for 9M 2025 was €891.9–892 million, down 2.5–3% year-over-year, mainly due to secondary aluminium challenges.

Financial highlights

• Steel Dust segment delivered €154.3 million adjusted EBITDA in 9M 2025, up 26.9–27% year-over-year; margin improved to 26%.

• Aluminum Salt Slag Recycling EBITDA was €22.6–23.2 million, down 9–26% year-over-year due to lower margins and higher costs.

• Operating cash flow for 9M 2025 was €114.9–115 million, down about 3% year-over-year.

• Net debt at €610 million, down 7.9% year-over-year; net leverage at x2.59.

• Free cash flow increased 10.9% to €84.7 million.

Outlook and guidance

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

• Q4 expected to be strong, driven by higher EAF dust volumes and no major maintenance stoppages.

• Net leverage expected below x2.5 by year-end; EPS to exceed 2, up at least 57% year-over-year.

• Capex for 2025 guided at €80–90 million; 2026 capex expected below €80 million, focused on Bernburg and maintenance.

• Ongoing deleveraging and strong cash generation remain priorities.