NV Bekaert (BEKB) Q4 2025 earnings summary

Executive summary

• Delivered resilient results in 2025 amid market volatility, trade tensions, and weaker demand in some end markets, supported by significant cost management, restructuring, and operational efficiencies.

• Stable volumes in Rubber Reinforcement and growth in energy and utilities; hydrogen business footprint adjusted due to weaker outlook.

• Strategic exits from lower-margin businesses and portfolio transformation continued with divestments in Latin America and acquisitions in Asia.

• Strong free cash flow above €314 million, with working capital discipline and reduced capex.

• Dividend proposed to increase to €1.95 per share and ongoing €200 million share buyback program.

Financial highlights

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

• EBIT margin at 8%, supported by €40m overhead and €39m operational savings; reported EBIT €135m due to €162m one-off charges.

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

• Working capital reduced to 15% of turnover/sales, achieving target.

• Underlying EPS €4.52, reported EPS €1.33 due to restructuring/impairment charges.

Outlook and guidance

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

• Growth anticipated in energy, utilities, and sustainable construction, especially in North America.

• Continued focus on cost control, cash generation, and operational leverage to support future profitability.

• CapEx expected to rise to around €170 million in 2026, mainly for automation and productivity improvements.

• Ongoing geopolitical and trade risks, with challenging environment in core markets.