Eurogroup Laminations (EGLA) Q2 2025 earnings summary

Executive summary

• Revenues for H1 2025 rose 1.6% year-over-year to €429.2 million, driven by strong growth in Asia, especially China, and the consolidation of Kumar, offsetting declines in North America and EMEA due to steel price reductions and macroeconomic headwinds.

• Adjusted EBITDA declined 12.2% to €44.8 million (10.4% margin), with margin compression in both business segments amid cost pressures, ramp-up costs, and adverse FX impacts.

• Net profit dropped sharply to €1.3 million from €17.9 million in H1 2024, reflecting higher depreciation, FX losses, and increased costs.

• Strategic alliance and stake sale to FountainVest and EMS announced, with a mandatory tender offer at €3.85/share, valuing the company at €626 million and delisting planned post-closing in H1 2026.

• Efficiency and cost optimization programs launched to restore profitability and cash generation, particularly in Europe and North America.

Financial highlights

• Group revenues: €429.2 million (+1.6% vs. H1 2024); E-mobility: €265.0 million (+0.4%); Industrial & Infrastructure: €164.2 million (+3.6%).

• Adjusted EBITDA: €44.8 million (10.4% margin, down from 12.1%); reported EBITDA: €42.5 million (9.9% margin).

• EBIT: €14.9 million (3.5% margin, down from 7.1%); net profit: €1.3 million (0.3% margin, down from 4.2%).

• Net financial debt: €264.0 million as of June 30, 2025, up from €225.5 million at year-end 2024; leverage ratio at 2.4x adjusted EBITDA.

• CAPEX: €40.1 million in H1 2025 (75–80% for E-mobility), with full-year guidance at ~€70 million.

Outlook and guidance

• Full-year 2025 revenue expected to grow ~5% over 2024, with adjusted EBITDA margin at ~12% and positive operating free cash flow.

• Medium-term guidance confirmed: 2025–28 revenue CAGR of 10–15%, EBITDA margin stable at 13%, and ROCE rising to 15–20%.

• Efficiency and operational excellence programs underway to structurally enhance margins and cash flow.