NV Bekaert (BEKB) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 consolidated sales reached €991 million, down 3% year-over-year, mainly due to lower input costs, volumes, and price/mix effects.

• Joint venture sales (non-consolidated) were €214 million, a 2% decrease compared to Q1 2024.

• Challenging market conditions persisted, with margin protection, cost control, and working capital management prioritized.

• Dividend of €1.90 per share proposed; €50 million executed in share buybacks as part of a €200 million program.

• Strong balance sheet and low financial leverage maintained.

Financial highlights

• Consolidated sales declined by €34 million from Q1 2024, mainly due to lower raw material and energy costs, regional mix, and a 12% drop in net volume.

• Price and mix effects reduced sales by €11 million; FX impact was a minor €9 million benefit; portfolio changes netted €4 million.

• Like-for-like volumes declined 1% (€-12 million); lower input costs impacted by 2% (€-23 million).

• Joint venture sales not included in consolidated figures: €45 million (Rubber Reinforcement Brazil), €169 million (Steel Wire Solutions Brazil).

• Lower capital expenditure requirements for 2025; intensive working capital focus to maintain robust cash flows.

Outlook and guidance

• Stable sales and EBITu margins expected for 2025, with a more balanced first and second half compared to previous seasonality.

• Weak business environment and tariff uncertainty expected to persist; business confidence remains fragile.

• Tariff impacts mitigated through local sourcing and pass-through pricing, but further deterioration or new tariffs could materially affect results.

• Wire rod prices anticipated to remain low and stable globally, except in the US where tariffs may keep prices elevated.

• M&A activity to focus on smaller transactions and strategic platform strengthening in 2025.