NV Bekaert (BEKB) Q4 2025 earnings summary

Executive summary

• Delivered resilient results in 2025 amid market volatility, trade tensions, and global policy shifts, supported by strong cost management, restructuring, and strategic exits from lower-margin businesses.

• Stable volumes in Rubber Reinforcement and growth in energy and utilities, but project delays in steel ropes and construction, especially in the U.S.

• Adjusted hydrogen business footprint to align with weaker growth outlook and regulatory delays.

• Free cash flow rose 63% to €314m, supporting a proposed dividend increase to €1.95 per share and ongoing €200m share buyback.

• Divestment of Latam North operations and continued portfolio evolution increased exposure to higher-margin markets.

Financial highlights

• Consolidated sales €3.7bn, down 6% year-over-year, mainly due to lower raw material cost pass-through, FX, and M&A effects.

• EBIT margin reached 8%, supported by cost control and operational improvements; reported EBIT fell to €135m due to €162m one-off charges.

• Free cash flow was €314m, up 63% year-over-year; leverage reduced to 0.4x Net Debt/EBITDA.

• Underlying EPS €4.52, down from €5.55 in 2024; reported EPS €1.33 due to restructuring/impairment charges.

• Working capital reduced to €524m (15.0% of sales), achieving target.

Outlook and guidance

• 2026 revenues and margins expected at similar levels to 2025 on a like-for-like basis.

• CapEx projected to rise to around €170m, mainly for automation, productivity, and selective growth in U.S. utilities.

• Dividend proposed to increase to €1.95 per share (+3%), with share buyback continuing until November.

• Recovery expected in sustainable construction and growth in energy/utilities, especially in North America.

• Ongoing geopolitical risk, trade uncertainty, and regulatory delays in hydrogen anticipated.