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 increased 58% year-over-year to €2.01, supported by resilient steel dust volumes and improved zinc pricing and hedging.

• 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.

• Palmerton expansion in the US completed, positioning for future growth as new EAF steel capacity ramps up.

• Leverage reduced to x2.27, well below the x2.5 target.

Financial highlights

• Steel Dust segment delivered adjusted EBITDA of €212 million, up 25% year-over-year, with margin improving to 26.5%.

• Aluminum salt slag EBITDA fell 27% year-over-year to €32 million, mainly due to lower metal margins and higher costs.

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

• Net income and EPS rose sharply; dividend of €26 million paid, representing 50% of net income.

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

Outlook and guidance

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

• Steel dust volumes to remain solid in Europe and increase in the US; salt slag volumes stable; secondary aluminium margins expected to improve.

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

• Dividend for 2026 proposed at €40 million, up 37% year-over-year.

• Comfortable with consensus 2026 EBITDA of €260 million, pending final treatment charge updates.