Befesa (BFSA) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly Adjusted EBITDA of €62 million in Q4 and full-year Adjusted EBITDA of €213.4 million, up 17% year-over-year, despite challenging macroeconomic and sector conditions.

• Revenue rose 5% year-over-year to €1,239 million, with strong performance in steel dust and salt slags recycling, though secondary aluminium was impacted by weak automotive demand.

• Operating cash flow increased 30% year-over-year to €192 million, reaching an all-time high.

• Net profit declined 12.3% to €50.8 million, with EPS down to €1.27.

• Leverage reduced to 2.9x at year-end, below the initial 3x target.

Financial highlights

• Adjusted EBITDA reached €213.4 million in FY2024 (+17.2% year-over-year); Q4 at €61.6 million (+36.2%).

• Revenue was €1,239 million in FY2024 (+4.9% year-over-year); Q4 at €324.2 million (+17.3%).

• Steel dust segment delivered €170.4 million Adjusted EBITDA in 2024 (+27.1% year-over-year), with margin improving to 20.6%.

• Aluminium salt slags segment reported €43 million EBITDA, down 10% year-over-year, mainly due to lower aluminium metal margins.

• Net debt increased 2.5% to €619 million; cash on hand at year-end was €102.5 million.

Outlook and guidance

• Expecting strong double-digit EBITDA growth and leverage below 2.5x in 2025, with focus on deleveraging and approved capex projects.

• Growth capex focused on Palmerton refurbishment and Bernburg expansion; China expansion paused.

• Total capex for 2025 expected below €100 million, with leverage targeted at 2.0–2.5x.

• Secondary aluminium segment to remain under pressure due to weak automotive demand and scrap scarcity.

• Full 2025 earnings guidance to be provided after zinc industry benchmark TC is set.