Befesa (BFSA) Q4 2025 earnings summary

Executive summary

• Achieved strong FY2025 results with adjusted EBITDA up 14% year-over-year to €243 million and margin rising to 21% from 17% in FY2024, reflecting operational efficiency and cost discipline.

• EPS surged 58% year-over-year to €2.01, and leverage reduced to x2.27 from x2.90.

• Revenue declined 5% year-over-year to €1,183 million, mainly due to lower secondary aluminium volumes, but resilient steel dust and salt slag operations offset challenges.

• Palmerton expansion in the US completed, positioning for future growth.

• Salt slag operations performed solidly, while secondary aluminium faced challenges due to weak European automotive demand.

Financial highlights

• Adjusted EBITDA reached €243 million, up 14% year-over-year; EBITDA margin improved to 21%.

• Operating cash flow hit a record €212 million, up 10% year-over-year; free cash flow up 86% to €136 million.

• Net income rose 58% to €81 million; EPS: €2.01 (FY2024: €1.27).

• Net leverage reduced to x2.27 at year-end 2025, down from x2.90 in December 2024.

• Capex was €76 million in 2025, below initial guidance, with €50 million in maintenance and €26 million in growth capex.

Outlook and guidance

• 2026 expected to deliver further earnings growth, strong cash flow, and continued deleveraging to around x2.0.

• Steel dust volumes to remain stable in Europe and increase in the US; salt slag volumes stable; secondary aluminium margins expected to improve.

• Total capex for 2026 to be below €70 million, focused on Bernburg expansion.

• Zinc treatment charges at historic lows in 2025, expected to rise to $100–$130/tonne in 2026, impacting margins.

• Dividend for 2026 proposed at €40 million, up 37% from 2025.