Corticeira Amorim S.G.P.S. (COR) Q4 2025 earnings summary

Executive summary

• Sales declined by 8.3% year-over-year to €861.0M, reflecting a challenging external environment and weaker demand across all business units; FX had a negative impact of €7.4M on sales.

• EBITDA margin fell to 16.4% (from 16.8% in FY24), totaling €141.0M, mainly due to product mix and operating deleverage, partially offset by price and efficiency gains.

• Net income dropped to €55.6M (down 20.3%), reflecting lower operating results and non-recurrent costs.

• Net debt was significantly reduced to €75.9M (from €195.7M at YE24), driven by strong free cash flow and lower working capital needs.

• The Board will propose a €0.35/share dividend at the May General Shareholders Meeting.

Financial highlights

• Gross margin improved to 54.6% of sales (up 1.8 percentage points year-over-year).

• EBITDA decreased by 10.5% year-over-year; EBIT dropped by 17.9%.

• Earnings per share fell 20.3% to €0.418.

• Free cash flow reached €175.9M, a significant improvement from the previous year.

• Dividend payout ratio increased to 76.6%.

Outlook and guidance

• Product mix and lower volumes are expected to continue pressuring profitability, though cork consumption prices should remain supportive.

• Management remains cautious for the coming year, citing ongoing geopolitical tensions, shifts in international trade, and changing alcohol consumption habits.

• Focus will remain on operational efficiency, cost optimization, and leveraging a solid financial position for market consolidation and innovation.

• Measures to support a sustainable recovery at Intercap are expected to yield results throughout 2026.

• Benefits from last year’s reorganization in Cork Solutions are expected to continue supporting profitability.