NV Bekaert (BEKB) Trading Update summary

Market environment and sales performance

• Q3 2024 sales reached €956 million, down 8% year-on-year, mainly due to lower volumes, normalization of input costs, and lower wire rod prices.

• Global market outlook weakened, with regional differences and dense geopolitical context impacting demand, especially in Rubber Reinforcement in China and Europe.

• Steel Wire Solutions maintained strong performance despite lower volumes and order delays in North America.

• Specialty Businesses saw 3% volume growth in Sustainable Construction, but weak demand in Combustion Technologies and Ultra Fine Wires.

• BBRG segment is progressing with its turnaround plan, despite operational issues in steel ropes and softer mining demand.

Operational and financial management

• Proactive cost management and operational efficiency initiatives are ongoing to support margins and competitiveness.

• Underlying EBIT margins for 2024 are expected to be broadly in line with 2023, despite declining sales.

• Cash flow generation remains strong, supported by disciplined CapEx allocation and low financial leverage.

• Working capital management is a focus, with efforts on inventory and receivables to enhance cash flow.

• CapEx for 2024 is expected to be similar to 2023, with a target range of €175-185 million.

Strategic and ESG developments

• Share buyback program of up to €200 million over two years has been restarted, with shares to be cancelled unless a major M&A occurs.

• Portfolio rationalization and focus on faster-growing markets remain priorities, with expansion in India, North America, and China.

• Bekaert qualified for up to €24 million in EU Innovation Fund support for green hydrogen manufacturing, with funding disbursed through 2027.

• Rooftop solar project in China is expected to generate over 30 million kWh of green electricity annually.

• Sustainability investments continue, including solar panel installations and product innovation in ceramics.