Eurogroup Laminations (EGLA) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues were €203.5 million, down 3.4% year-over-year at constant FX, reflecting resilience amid macroeconomic headwinds, regulatory shifts, and lower volumes in the US and Mexico, with stabilization from Industrial & Infrastructure solutions and continued weakness in E-mobility.

• E-mobility Solutions experienced a 9.4% revenue decline at constant FX (13.3% YoY), mainly due to project phase-outs and lower sales in the US and Mexico.

• Industrial & Infrastructure Solutions provided stability, with revenues up 6.1% at constant FX, driven by growth in HVAC, logistics, and home and transformer sub-segments, and recovery in EMEA.

• Operational efficiency and performance improvement programs are underway, with benefits expected to materialize throughout the year.

• A €375 million refinancing agreement was completed, extending average debt maturity from two to four years and enhancing financial flexibility.

Financial highlights

• Q1 2026 total revenues reached €203.5 million, including nearly €10 million of raw material sales at cost.

• Adjusted EBITDA was €17.1 million (8.4% margin), down from €23.5 million (10.6%) in Q1 2025, impacted by tariffs, weaker macro environment, and higher ramp-up project share.

• EBIT stood at €1.6 million, down from €9.0 million, mainly due to higher amortization from recent investments.

• CAPEX for Q1 was €9.1 million, significantly lower than €26.5 million in Q1 2025, reflecting normalization after expansion.

• Net debt at quarter-end was €288 million, with a net leverage ratio of 3.5x LTM adjusted EBITDA.

Outlook and guidance

• Full-year 2026 revenue guidance confirmed at €700–750 million, with adjusted EBITDA margin expected at ~11%.

• Positive operating free cash flow, including CAPEX of approximately €45 million, is anticipated.

• Margin improvement is expected in H2 2026, driven by ramp-up of new projects, efficiency programs, and capacity optimization.

• E-mobility segment to remain affected by US policy, but new technologies (autonomous vehicles, robotaxis) offer growth opportunities.

• Industrial & Infrastructure solutions expected to provide stability, supported by diversified markets.