Befesa's Q4 revenue decreased by 10%, with EBITDA profit margin expanding to 23.7%

LootboxPhobia · 2026-02-26T08:10:33+00:00

Befesa SA releases Q4 results, with revenue down 10% year-over-year to €291 million, but adjusted EBITDA margin improved to 23.7%. Full-year revenue was €1.183 billion, with adjusted EBITDA increasing by 14%. Management expects profits to further grow by 2026.

LootboxPhobia

2026-02-26 08:10:33

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Investing.com – Befesa SA (ETR:BFSA) announced preliminary results on Thursday, with revenue for the fourth quarter at €291 million, down 10% year-over-year.

The revenue decline was due to flat arc furnace production (down 1%) and foreign exchange headwinds affecting London Metal Exchange pricing.

Despite the revenue decrease, the company’s adjusted EBITDA margin expanded from 19.0% in the same period last year to 23.7%, reaching €69 million, a 12% increase year-over-year.

The margin improvement reflects higher capacity utilization, especially in its U.S. operations in Palmerton.

For the full fiscal year 2025, Befesa reported revenue of €1.183 billion, down 5% year-over-year, with adjusted EBITDA of €243 million, up 14%.

The EBITDA figure is at the lower end of the company’s guidance range. Full-year earnings per share reached €2.01, up 58% from €1.27 in 2024.

Operating cash flow in the fourth quarter totaled €97 million, up 32% year-over-year, while full-year operating cash flow reached €212 million, a 10% increase. Net leverage ratio improved from 2.6 times in Q3 to 2.3 times.

Operational metrics for the fourth quarter showed arc furnace steel dust processing volume at 319,000 tons, down 1% year-over-year, and secondary aluminum alloy production decreased 16% to 37,000 tons. Salt slag recovery remained steady at 108,000 tons.

Management stated that profit is expected to further grow in 2026, driven by continued improvements in Palmerton, healthy European production, and stable performance in Asia. The company expects treatment fees to range between $100 and $130 per ton, currently at $80 per ton.

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