Befesa S.A.

Latest Results (23.01.2026):

Befesa S.A. — H1 2025 (including Q2 2025): Revenue dipped modestly to €601.6m (-3.1% YoY) but the group delivered stronger profitability and lower leverage. Adjusted EBITDA rose to €112.1m (+8.7%), net profit attributable to shareholders doubled to €40.1m (EPS €1.00), and net leverage improved to 2.7x. Management confirmed FY 2025 EBITDA guidance of €240–265m and expects further deleveraging by year-end.

Key financials

H1 2025 revenue €601.6m (-3.1%); EBITDA €108.6m (+12.5%); adjusted EBITDA €112.1m (+8.7%); EBIT €67.7m (+30.3%); adjusted EBIT €72.4m (+21.4%); net profit to Befesa S.A. shareholders €40.1m (+100%); EPS €1.00.

Margins and profitability

Adjusted EBITDA margin improved to 18.6% (H1 2024: 16.6%); adjusted EBIT margin 12.0% (H1 2024: 9.6%). Performance benefited from favourable zinc pricing/hedging and treatment charges, lower coke costs and cost management despite lower volumes and scheduled maintenance.

Volumes and operations

Volumes were lower: EAF steel dust throughput 550,289 t (-9.7%); Waelz oxide sold 184,981 t (-7.5%); salt slags & SPL recycled 212,884 t (-3.5%); secondary aluminium produced 82,958 t (-8.4%). Average plant utilization: EAFD plants ~64%, salt slags ~92%, secondary aluminium ~78%.

Cash flow and balance sheet

Net debt at 30 June 2025 €601.1m (vs €645.6m June 2024); net leverage 2.70x (LTM adjusted EBITDA €222.4m). Cash & equivalents €96.5m. Operating cash flow €64.4m (-8.5% YoY); invested c.€36.9m in H1 (company reports €32.4m capex excluding €4.5m change in fixed‑asset suppliers).

Segment performance

Steel Dust: revenue €388.5m, adjusted EBITDA c.€96.3m (notable improvement despite lower volumes). Salt Slags: revenue €57.3m (+6.0%), EBITDA down ~12.7% to €16.1m. Secondary Aluminium: revenue €181.5m (-5.7%), EBITDA declined to €2.2m (weaker aluminium metal margins and lower volumes).

Financial items and one‑offs

Net financial result improved to -€11.8m (H1 2024: -€17.2m), helped by repricing of the Term Loan B (rate cut ~50bps) and higher finance income. Working capital swing (‑€35.7m impact) was affected by seasonality and hyperinflation effects in Turkey; taxes paid in H1 were -€12.0m (including final assessments).

Outlook and capital allocation

FY 2025 EBITDA guidance confirmed at €240–265m, with a stronger H2 expected from higher EAF dust volumes and supportive market conditions. Befesa reiterates commitment to deleveraging (target leverage in the x2.0–2.5 range during the investment period) and prioritises low‑risk growth capex (Palmerton, Bernburg) to capture market growth.