Renewi (RWI) H1 2025 earnings summary

Executive summary

• Announced and completed the sale of the UK municipal business, enabling focus on core Benelux and European recycling markets, de-risking the balance sheet, and improving cash generation.

• Strategic transformation through portfolio optimization, cost reduction, and innovation programs positions the company for further growth.

• Revenue from continuing operations increased 4% to €874.5m, with underlying EBIT up 9% to €53.2m and margin improvement to 6.1%.

• Cost and efficiency measures delivered €15m SG&A savings, with further initiatives underway.

• Dividend reinstated for FY24, with future increases expected as margins and cash flow improve.

Financial highlights

• FY24 revenue was roughly flat, with inbound revenue up 4% due to price increases, and FY25 HY revenue up 4% to €874.5m.

• Underlying EBIT for FY25 HY increased 9% to €53.2m, with margin at 6.1%; FY24 EBIT was €106.8m.

• Adjusted free cash flow improved to €20.3m in HY25, with FY24 at €70m and significant working capital improvement.

• Replacement CapEx reduced from €87m to €57m, and growth CapEx planned at €120-140m over 3-5 years.

• Core net debt reduced to €357.7m, with leverage at 2.04x EBITDA, down from 2.14x in March 2024.

Outlook and guidance

• FY25 underlying EBIT and revenue expected in line with market expectations, with volume stabilization and growth in Belgium.

• Targeting 8%-10% EBIT margins, ROCE >15%, and free cash flow/EBITDA conversion >40% over the medium term.

• Free cash conversion and total cash flow expected to improve significantly post-UK divestment.