Agfa-Gevaert (AGFB) Q1 2025 earnings summary

Executive summary

• Q1 2025 results showed stable adjusted EBITDA, as improved sales mix and cost control offset declines in film and radiology, especially in China.

• HealthCare IT delivered strong growth, with a 12% revenue increase, 288% rise in adjusted EBITDA, and significant order intake momentum.

• Digital Print & Chemicals saw 5.8% revenue growth, mainly from Specialty Films & Chemicals, and a 129% increase in adjusted EBITDA.

• Radiology Solutions experienced a mid-teens percentage revenue decline, with profitability further impacted by medical film market weakness, especially in China.

• The business remains highly seasonal, with Q1 typically the weakest quarter and most EBITDA generated in the second half of the year.

Financial highlights

• Group revenue declined 3.2% year-over-year to €242 million, with gross profit margin improving to 30.7%.

• Adjusted EBITDA was €2 million (0.9% of sales), up 24.6% year-over-year.

• Net result for the period was a loss of €20 million, similar to Q1 2024.

• Free cash flow was negative €27 million, mainly due to increased working capital and ZIRFON plant investment.

• Operating expenses reduced to €81 million from €84 million year-over-year.

Outlook and guidance

• Growth engines (HealthCare IT, Digital Print & Chemicals, Green Hydrogen Solutions) expected to continue strong performance in 2025, with a stronger second half anticipated.

• HealthCare IT outlook upgraded, with strong order intake and recurring revenue growth expected.

• Digital Print & Chemicals expects top line and profitability growth, especially in Digital Printing Solutions.

• Green Hydrogen Solutions market subdued for 2025, with expectations for recovery in 2026–2027.

• Radiology decline expected to persist, with cost-saving measures underway to mitigate impact.