NV Bekaert (BEKB) H1 2025 earnings summary

Executive summary

• Delivered resilient H1 2025 results with robust profit margins and strong free cash flow, despite a 5.2% sales decline year-over-year to €1.9 billion, driven by lower volumes, input costs, and FX impacts.

• Intense focus on cost efficiencies, with €21 million overhead reduction and €135 million working capital improvement.

• Strategic portfolio rationalization continued, including disposal of LATAM North and Steel Wire Solutions in Costa Rica, Ecuador, Venezuela, Indonesia, and India, reducing Latin America sales exposure to ~4%.

• Ongoing €200 million share buyback program, with €74 million completed to date.

Financial highlights

• EBIT/EBITu margin at 8.8% in H1 2025 (down from 9.9%/9.4% in H1 2024); free cash flow surged to €123 million (+186% year-over-year), driven by working capital and capex discipline.

• Consolidated sales declined to €1,953 million from €2,060 million in H1 2024.

• Overhead costs reduced by €21 million; working capital as % of sales improved to 16.3%.

• Net debt reduced to €327 million (net debt/EBITDAu at 0.7x); gearing at 15.3%.

• One-off items totaled €-56 million, mainly from a €-40 million non-cash translation adjustment on LatAm disposal and €-14 million restructuring costs.

Outlook and guidance

• Full-year 2025 sales expected to be slightly lower on a like-for-like basis compared to 2024, mainly due to FX, divestments, and closures.

• EBIT/EBITu margin guidance for 2025 set at 8.0–8.5%, reflecting tariff and demand headwinds.

• Anticipates further demand weakening in H2 2025 due to tariff uncertainty and economic slowdown.

• Mid- to long-term ambition of >5% annual sales growth and >10% profit margin remains, but timing for 10% margin likely delayed beyond 2026.

• Focus remains on cost control, cash flow generation, and footprint optimization.