Vidrala (VID) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached EUR 372.5 million, with EBITDA at EUR 104.6 million and EPS of EUR 1.42, reflecting a 9.0% year-over-year decline.

• EBITDA margin improved to 28.1%, up 190 basis points year-over-year, despite price reductions and lower volumes.

• Net debt stood at EUR 289.2 million, a 45.4% reduction year-over-year, with a leverage ratio of 0.7x LTM EBITDA.

• The business remains resilient amid softer-than-expected demand and macro uncertainties, supported by strategic investments and cost optimization.

• Strategic focus on growth regions, diversification, and sustainable operations continues.

Financial highlights

• Sales declined 11.2% year-over-year to EUR 372.5 million, with organic sales down 6.6%.

• EBITDA was EUR 104.6 million, a 4.8% decrease year-over-year, but organic EBITDA grew 1.4%.

• EPS was EUR 1.42, adjusted for bonus share issue.

• Scope effect from the exclusion of the Italian business negatively impacted sales by 4.1%.

• Net debt reduced to EUR 289.2 million, leverage ratio improved to 0.7x.

Outlook and guidance

• Full-year 2025 EBITDA expected to exceed EUR 450 million, surpassing last year's comparable figures.

• Free cash flow forecasted at EUR 200 million, supported by sustained cash generation and an ambitious organic capex plan (~12% of sales).

• Modest volume recovery expected for the full year, with better prospects in Latin America than Europe.

• Energy hedging covers about 70% of 2025 needs, with potential benefit if gas prices fall in H2.

• Strategy focuses on growth in key regions, portfolio expansion, and industrial footprint optimization.