Befesa (BFSA) Q4 2025 earnings summary

Executive summary

• Achieved strong FY2025 results with adjusted EBITDA up 14% year-over-year to €243 million and margin rising to 21% from 17% in FY2024, reflecting operational efficiency and cost discipline.

• EPS surged 58% year-over-year to €2.01, and leverage reduced to x2.27 from x2.90, well below the 2.5 target.

• Revenue declined 5% year-over-year to €1,183 million, but resilient EAF dust volumes and solid salt slag operations offset challenges in secondary aluminium.

• Continued deleveraging for the seventh consecutive quarter, with net leverage reduced to 2.27.

• Completed Palmerton expansion in the US, positioning for future growth in electric arc furnace steel dust recycling.

Financial highlights

• Adjusted EBITDA reached €243 million, up 14% year-over-year; EBITDA margin improved to 21% from 17%.

• Operating cash flow hit a record €212 million, up 10% year-over-year; free cash flow up 86% to €136 million.

• Net income rose 58% to €81 million; EPS: €2.01 (FY2025: €1.27).

• Total CapEx was €76 million, below initial guidance, with €50 million in maintenance and €26 million in growth CapEx.

• Net debt reduced by 11% to €552 million; cash on hand at €143 million, with over €240 million liquidity.

Outlook and guidance

• 2026 expected to deliver further earnings growth, strong cash flow, and continued deleveraging to around x2.0.

• Steel dust volumes to remain stable in Europe and increase in the US, supported by new contracts.

• Salt slag volumes projected to stay stable; secondary aluminium margins expected to improve after bottoming out in Q3 2025.

• Total CapEx for 2026 to be below €70 million, focused on Bernburg expansion.

• Zinc price hedging extended to H1 2028 at high levels, providing price visibility.