BEWi (BEWI) Q1 2026 earnings summary

Executive summary

• Net sales rose 5.7% year-over-year to EUR 198.6 million, with volume growth across all segments and the sixth consecutive quarter of improved EBITDA.

• Adjusted EBITDA increased 44% to EUR 22.2 million, driven by operational improvements, strategic investments, and cost optimizations.

• Circular segment delivered positive EBITDA for the first time in 12 quarters, with profitability expected to continue.

• All segments—Insulation & Construction, Packaging & Components, and Circular—reported volume growth and margin improvements.

• Inventory was secured at favorable prices, with plans to reduce inventory and improve cash generation in Q2.

Financial highlights

• Net sales reached EUR 198.6 million, up 5.7% year-over-year for Q1, driven by Packaging & Components and Circular segments.

• Adjusted EBITDA rose to EUR 22.2 million, a 44% increase year-over-year, with margin up to 11.2% from 8.2%.

• EBIT improved to EUR 1.5 million from EUR -2.9 million in Q1 2025.

• Net loss from continuing operations improved to EUR -7.4 million from EUR -12.4 million year-over-year.

• Free cash flow for Q1 was EUR -10.1 million, with high inventory levels maintained at favorable prices.

Outlook and guidance

• Focus remains on achieving a 15% EBITDA margin, supported by operational improvements and business model enhancements.

• Strong start to Q2 and positive market trends expected to drive further growth, with inventory and working capital expected to decrease.

• Market outlook includes 6% CAGR for new build residential in Europe (2026–2028), 5–7% CAGR in automotive, and 6% CAGR in HVAC through 2031.

• Leverage expected to decrease markedly due to improved EBITDA and cash release from working capital.