Befesa S.A.

Latest Results (21.04.2026):

Befesa S.A. Q3 2025: The company reported strong Q3 2025 results with adjusted EBITDA up ~27% year‑on‑year to about €62m and Q3 net profit up ~318% to ~€21m (Q3 2024: €5m). Nine‑month (9M) results show adjusted EBITDA of €174m (+15% yoy), net profit €61m (+143% yoy) and revenues slightly down (9M €892m, -3%). Leverage improved materially to 2.59x in September 2025 and management reiterated full‑year EBITDA guidance of €240–€265m, expecting a strong Q4 driven by high EAF dust volumes.

Key financials (Q3 2025 / 9M 2025)

Q3 revenue €290m (-1.2% yoy); Q3 adjusted EBITDA €61.7m (+26.7% yoy); Q3 net profit €20.7m (+317.9% yoy). 9M revenue €891.9m (-2.5%); 9M adjusted EBITDA €173.8m (+14.5%); 9M net profit €60.7m (+143.2%). EPS 9M €1.52 (vs €0.62).

Profitability drivers

Improved margins driven by favourable zinc treatment charges (~$80/t for 2025) and effective zinc hedging (9M avg ~€2,606/t; outlook ~€2,640/t), which materially supported Steel Dust profitability despite softer volumes in some markets.

Segment performance — Steel Dust

Steel Dust 9M adjusted EBITDA €154m (+27% yoy); Q3 adjusted EBITDA margin rose to 21.3% (Q3 2024: 16.6%). Throughput modestly up 1% to 896 kt (9M), average capacity utilisation ~69%, with particularly strong Q3 volumes. US Palmerton expansion (second kiln) commissioned in July 2025.

Segment performance — Aluminium Salt Slags

Aluminium Salt Slags 9M EBITDA €23m (down from €30m), affected by compressed metal margins in secondary aluminium and weakness in the European automotive sector. Salt slags volumes steady at 314 kt; secondary aluminium alloy production -8% to 117 kt (77% utilisation).

Cash, leverage and capital allocation

Operating cash flow 9M €115m (slightly below prior year). Net debt €610m (down ~7.9% YoY) and net leverage improved to 2.59x (Sept 2025 vs 3.36x Sept 2024); company on track to fall below 2.5x by year‑end and targets a 2.0–2.5x range going forward.

Outlook & near‑term priorities

FY2025 EBITDA guidance confirmed at €240–€265m, expecting a strong Q4 from high EAF dust volumes, low zinc treatment charges and contributions from new US contracts. Q4 growth capex focused on the Bernburg expansion (target completion Q2 2026) after finishing Palmerton.