Verbio (VBK) Q4 24/25 earnings summary

Executive summary

• Achieved record production in 2024-2025, with biodiesel, ethanol, and biomethane output reaching new highs despite challenging market conditions and regulatory headwinds.

• EBITDA for FY 2024/25 declined to €121.6m from €164.0m year-over-year, mainly due to lower gross profit, weaker ethanol margins, market fraud, and one-off costs, but maintained a strong market position and premium in core products.

• Strategic focus on expanding advanced biofuels, optimizing portfolio, and leveraging global demand growth, especially in North America and Asia.

• Financial stability remains high, with equity ratio at 58.2% as of June 30, 2025.

• €66m impairment on straw biomethane plant impacted total comprehensive income.

Financial highlights

• Group EBITDA fell to €121.6m for the year, with Q4 Group EBITDA at €-8.2m, mainly due to bioethanol/biomethane segment losses and one-offs.

• Biodiesel production reached nearly 620,000 tons with 87% capacity utilization; Canadian plant shutdown impacted output, but European production increased.

• Net financial debt increased to €32.9m from €14.2m year-over-year, driven by negative free cash flow and lower operating cash flow.

• Biodiesel segment Q4 revenue rose to €244 million (from €210 million in Q3), with EBITDA up 24% to €20.8 million.

• Bioethanol/biomethane Q4 revenue was €186 million (up from €181.5 million in Q3), but EBITDA dropped to €-26.3 million due to lower margins and inventory write-downs.

Outlook and guidance

• FY 2025/26 guidance: production capacity increases across all segments, with EBITDA expected in the high double-digit million range, based on conservative market spread assumptions and recovering GHG quota prices.

• Guidance assumes improved results, lower investments, balanced free cash flow, and moderate net debt reduction year over year, with temporary increases during the year due to cash flow timing.

• Second half of 2025-2026 expected to be stronger due to new contracts and higher quota prices.

• Dividend payout suspended for 2024-2025 to maintain financial flexibility, with intent to resume in the medium term.