Befesa (BFSA) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA for Q1 2026 rose 4% year-over-year to €58 million, with margin improving from 18% to 20% and net income up 11% to €21 million.

• EPS increased 11% year-over-year to €0.52, and operating cash flow rose 12% to €38 million.

• Revenue declined 7.5–8% year-over-year to €285 million, reflecting market volatility, weaker aluminium, and maintenance impacts.

• Leverage reduced to 2.25x from 2.78x a year ago, with net debt down 10% to €550 million.

• FY 2026 EBITDA guidance set at €250–270 million, supported by US steel dust growth, Bernburg expansion, and stable zinc hedging.

Financial highlights

• Adjusted EBITDA margin improved to 20.3% from 18.1% year-over-year.

• EBIT rose 17.3% to €37.4 million; net profit attributable to shareholders increased 11.2% to €20.7 million.

• Operating cash flow reached €38.1 million, up 12.3% year-over-year; cash and cash equivalents at period end were €144.7 million, up 37.8% year-over-year.

• Capital expenditures totaled €21.1 million, mainly for Bernburg expansion.

• Net debt decreased 10.2% to €550 million; net leverage improved to 2.25x.

Outlook and guidance

• FY 2026 EBITDA expected between €250–270 million, driven by US volume growth and aluminium recovery.

• Capex for 2026 guided at around €70 million, with €45 million for maintenance and €25 million for growth (Bernburg expansion).

• Net leverage targeted at ~2.0x by year-end 2026.

• EPS projected above €2.2 for FY 2026, representing over 10% growth.

• Cautious stance on inflation, FX headwinds, and zinc price volatility.