Befesa S.A.

Latest Results (09.03.2026):

Befesa S.A. — H1 2025 (first half 2025): The company reported H1 2025 revenue of €601.6m (-3.1% YoY) with adjusted EBITDA of €112.1m (+8.7% YoY) and reported EBITDA €108.6m (+12.5%). Net profit attributable to shareholders doubled to €40.1m (EPS €1.00). Net debt fell to €601.1m with net leverage at x2.70. Management confirmed FY 2025 EBITDA guidance of €240–265m and expects leverage below x2.5 by year-end 2025.

Top-line and margins

Revenue: €601.6m in H1 2025 (-3.1% vs H1 2024). Adjusted EBITDA: €112.1m (+8.7%), implying an adjusted EBITDA margin of 18.6% (vs 16.6% a year ago). Reported EBIT was €67.7m (+30.3%) and adjusted EBIT €72.4m (+21.4%).

Profitability & earnings per share

Net profit attributable to Befesa S.A. shareholders: €40.1m (H1 2024: €20.0m), up 100%. EPS: €1.00 (H1 2024: €0.50), driven by improved operating results, favourable zinc pricing/TC dynamics and lower finance costs.

Balance sheet, leverage & liquidity

Net debt: €601.1m at 30 June 2025 (down vs prior periods). Net leverage: x2.70 (LTM adjusted EBITDA €222.4m). Cash & equivalents: €96.5m. Gross debt €697.6m (reduced vs Dec 2024), helped by repayments and a May 2025 repricing of Term Loan B (‑50 bps).

Cash flow and capex

Operating cash flow: €64.4m in H1 2025 (‑8.5% YoY). After working capital, interest, tax and capex the period cash flow was -€6.0m. H1 capex (cash) was €36.9m (H1 2024 incl. Recytech: €79.0m); capital focus on maintenance and selected growth projects (Palmerton, Bernburg).

Volumes & operational drivers

Volumes declined in H1 2025: EAF steel dust throughput 550,289 t (-9.7%), WOX sold 184,981 t (-7.5%), salt slags/SPL recycled 212,884 t (-3.5%), secondary aluminium output 82,958 t (-8.4%). Lower volumes were mostly due to annual maintenance shutdowns and timing; pricing and treatment charges helped margins.

Segment performance — Steel Dust

Steel Dust revenue €388.5m (down vs prior year). Adjusted EBITDA for Steel Dust €96.3m (+19% YoY) and adjusted EBIT €65.3m (+33% YoY), benefiting from higher zinc hedging prices, improved treatment charges and zinc spot prices despite lower volumes. Reported EBITDA/EBIT include adjustments related to hyperinflation impact in Turkey.

Segment performance — Salt Slags & Secondary Aluminium

Salt Slags: revenue €57.3m (+6% YoY), EBITDA €16.1m (-12.7%) due to lower volumes and higher operating/energy costs; EBIT broadly stable at €11.5m. Secondary Aluminium: revenue €181.5m (-5.7%), EBITDA down to €2.2m (‑44.4%) and EBIT -€1.6m, impacted by weaker aluminium metal margins and lower volumes.

Hedging, finance costs & risks

Befesa maintains zinc price hedges providing visibility (hedge book in place to January 2027); average hedged zinc prices cited ~€2,640/t for 2025 and ~€2,655/t for 2026. Net finance result improved to -€11.8m (H1 2024: -€17.2m), helped by higher cash interest income and loan repricing. The report notes no material new risks beyond disclosures in the 2024 annual report; hyperinflation in Turkey affected some adjustments.

Outlook and guidance

FY 2025 EBITDA guidance confirmed at €240–265m (+13% to +24% YoY vs 2024 €213m), with stronger H2 expected from higher EAF dust volumes and favourable market conditions (treatment charges, hedging, lower coke prices). Management targets financial leverage below x2.5 by end‑2025.