Aalberts announces decline in FY2025 performance, expects recovery in FY2026

2026-02-26 09:25:48

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Investing.com – Aalberts N.V. (AMS:AALB) reported on Thursday that FY2025 EBITA decreased by 13% to €410 million, beating market expectations of €403 million by 2%.

The decline was mainly due to a 2.5% organic revenue decrease and an 180 basis point drop in EBITA margin to 13.2%.

Driven by a significant reduction in inventory, free cash flow increased by 8% to €361 million, surpassing market expectations of €347 million by 4%. Net debt after acquisitions stands at 1.8 times EBITDA, up from 1.0 times in FY2024.

The construction segment, accounting for 51% of revenue, saw EBITA decline by 11% to €183.5 million. Organic revenue grew by 1.3%, mainly driven by the Americas, while the European market remains challenged.

EBITA margin fell by 120 basis points to 11.7%, reflecting lower profitability in the Americas and negative structural impacts from pressure on connection system margins.

The industrial segment, representing 34% of revenue, saw EBITA decrease by 6% to €186.3 million. This was mainly due to a 2.8% organic revenue decline, with sluggish activity in automotive and machinery manufacturing weighing on performance, while aerospace, maritime, and defense sectors saw growth.

EBITA margin dropped by 140 basis points to 17.2%, supported by cost-saving measures.

The semiconductor segment, making up 16% of revenue, experienced a 24% decline in EBITA to €54.5 million. This was primarily due to a 13.8% organic revenue decrease, reflecting declining demand and worsening trends, although the Q4 2025 year-over-year base was low.

EBITA margin fell by 230 basis points to 11.9%.

Unallocated costs increased by €10.8 million to €14.8 million, with acquisition costs exceeding €15 million.

For FY2026, Aalberts expects organic growth and EBITA margin to improve. Market consensus anticipates EBITA to recover by 3% to €421 million, driven by 1.8% organic revenue growth (assuming a 5% recovery in the semiconductor segment), and EBITA margin to increase by 152 basis points to 14.6%.

The acquisition effect is expected to contribute 4.0% to revenue, offset by divestment effects of 11.5%.

Aalberts proposes a dividend of €1.15 per share and announced a €75 million share buyback program, representing 2% of market capitalization.

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