Befesa Stock: Profit Doubles Despite Revenue Drop

Befesa has surprised investors by doubling its net profit to €21.4 million in the second quarter, despite a 9% decline in revenue to €293 million. The industrial recycling specialist managed to increase its adjusted EBITDA by 4% to €56.8 million, precisely meeting analyst expectations. This remarkable performance stems from operational improvements and record-low treatment costs, which successfully offset volume decreases caused by maintenance work and weakening markets. The company's steel dust recycling segment demonstrated particular strength, with EBITDA climbing 5% to €47 million despite 13% lower revenue, pushing the margin from 20.7% to an impressive 25.0%. For the first half of 2025, Befesa reported a net profit of €40.1 million – exactly double the previous year's figure – while six-month EBITDA rose 9% to €112 million.

Second Half Expected to Accelerate Growth

CEO Asier Zarraonandia maintains an optimistic outlook as Befesa enters the second half of the year. With most maintenance work now completed and inventory levels well-stocked, the company is positioned for significant volume increases across all markets. In the United States, the second furnace in Palmerton will begin operations in the third quarter, while new steel dust delivery contracts will take effect. The company's annual target of €240-265 million in adjusted EBITDA remains unchanged, requiring at least €128 million in the second half. Meanwhile, the net debt ratio improved from 3.4 to 2.7, with further reduction expected by year-end. The stock responded positively, increasing by 0.54% to €26.08.

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Source StockWorld