Kemira (KEMIRA) Q1 2025 earnings summary

Executive summary

• Solid profitability maintained in Q1 2025 despite increased market uncertainty and softer demand, particularly impacting Packaging and Hygiene Solutions, while Water Solutions and Fiber Essentials remained resilient.

• EBITDA margin was 19.1%, with sequential improvement from Q4 2024, and organic growth declined by 2% year-over-year.

• Several growth initiatives were announced, including a joint venture with IFF for bio-based materials, a bolt-on acquisition in US Water Solutions, and capacity expansion in APAC.

• Dividend increased to EUR 0.74 per share for 2024, to be paid in two installments.

• Oil & Gas business divestment completed in Q1 2024; adjusted figures exclude this segment for comparability.

Financial highlights

• Q1 2025 revenue was EUR 708.8 million, down 7% year-over-year; organic revenue declined 2%.

• Operative EBITDA was EUR 135.5 million (margin 19.1%), down 17% year-over-year; EBIT was EUR 84.7 million.

• Net profit was EUR 61.7 million, a 22% decrease from Q1 2024; EPS diluted was EUR 0.38, down 23%.

• Cash flow from operations was EUR 55.0 million, down 44% from Q1 2024, aided by a $50 million vendor note repayment and EUR 10 million pension fund return.

• Net debt including operating leases at EUR 216 million; leverage at a record low of 0.4x.

Outlook and guidance

• 2025 revenue in local currencies (excluding acquisitions/divestments) expected between EUR 2,800–3,200 million (2024: EUR 2,948 million).

• Operative EBITDA guidance for 2025 is EUR 540–640 million (2024: EUR 585 million).

• Assumptions include continued global economic uncertainty, stable raw material environment, and no major operational disruptions.

• Water treatment market expected to grow in all regions; packaging market faces continued softness.

• CapEx expected to rise to approximately EUR 200 million for the year, mainly due to the IFF joint venture.