BEWi (BEWI) Q2 2025 earnings summary

Executive summary

• Packaging segment led growth in Q2 2025, with food packaging and fish box volumes driving a 13% EBITDA increase year-over-year.

• Insulation and construction recovery was slower than expected, with regional variations and a higher share of lower-margin products impacting results.

• Circular segment showed solid progress, with increased collection and improved cost base.

• Two strategic transactions completed, including mergers with Unipol and STOK, and an equity issue planned to strengthen the financial position.

• The group is contemplating a €75 million equity issue to support growth and balance sheet.

Financial highlights

• Q2 2025 net sales from continuing operations were €208.2 million, up 0.4% year-over-year; adjusted EBITDA reached €22 million, a 13% increase.

• EBIT for Q2 was €3.8 million, down from €5.5 million in Q2 2024; net result from continuing operations was €-7.3 million.

• Operating cash flow dropped to €1.0 million from €23.0 million in Q2 2024, impacted by working capital build-up.

• Net debt (excluding IFRS 16) was €291 million at Q2 2025, with leverage ratio above target due to working capital and CAPEX.

• CAPEX for Q2 2025 was €10.9 million, mainly for strategic investments in automotive.

Outlook and guidance

• Market recovery in insulation is slower than anticipated, with volumes still below pre-downturn levels.

• Packaging segment expected to benefit from higher salmon slaughter volumes in Q3.

• Working capital is expected to be released in the second half of the year as inventory levels are managed.

• Equity issue planned to support balance sheet and position for growth.

• Leverage is expected to decrease substantially in the short run due to increased EBITDA and lower debt.