Eurogroup Laminations (EGLA) Q2 2025 earnings summary

Executive summary

• Revenues rose 1.6% year-over-year to €429.2 million in H1 2025, driven by strong growth in Asia, especially China, while North America and Europe remained weak or volatile.

• Adjusted EBITDA declined 12.2% to €44.8 million (10.4% margin), with margin pressure from cost increases, lower volumes, and ramp-up costs, especially in Western regions.

• Net profit dropped sharply to €1.3 million, mainly due to adverse FX trends and lower operating leverage.

• Strategic alliance announced between EMS and FountainVest, with a mandatory tender offer at €3.85/share, valuing the company at €626 million and delisting planned for H1 2026.

• Efficiency and cost optimization programs launched to restore profitability and cash generation, particularly in Europe and North America.

Financial highlights

• Group revenues: €429.2 million (+1.6% vs. H1 2024); E-mobility: €265.0 million (+0.4%); Industrial & Infrastructure: €164.2 million (+3.6%).

• Adjusted EBITDA: €44.8 million (10.4% margin), down from €51.1 million (12.1%) in H1 2024; reported EBITDA €42.5 million (9.9% margin).

• EBIT: €14.9 million (3.5% margin), down 50.5% year-over-year; net profit: €1–1.3 million (0.3% margin), down from €17.9 million (4.2%).

• CapEx for H1 2025 was €40–40.1 million, with 75–80% allocated to E-mobility expansion.

• Net financial debt at end of June was €264 million, up from €225.5 million at year-end 2024, with net leverage at 2.4x adjusted EBITDA.

Outlook and guidance

• Full-year 2025 revenue expected to grow 5% over 2024, with adjusted EBITDA margin at 12% and positive operating free cash flow; CapEx guidance at €70 million.

• Medium-term guidance confirmed: 10–15% revenue CAGR, 13% average EBITDA margin, 15–20% ROCE by 2028, and declining CapEx intensity.

• Efficiency and operational excellence programs underway to structurally enhance margins and cash flow.