Befesa S.a Stock Earnings Reports

Befesa delivered a strong Q3 2025 with resilience across its diversified recycling businesses. Adjusted EBITDA for the first nine months rose to EUR 174m (+15% YoY) and Q3 margin expanded to 21.3% (vs 16.6% a year ago). Steel Dust was the primary driver: EUR 154m EBITDA in 9M (+27% YoY) supported by recovering volumes after earlier maintenance, lower treatment charges (set at $80/t for 2025), favorable zinc pricing, and improving U.S. operations after the Palmerton refurbishment. Aluminum Salt Slag remained resilient (plants at ~89% utilization) but the secondary aluminum business was pressured by weak European automotive demand and higher energy costs, leading to a 26% YoY EBITDA decline in the Aluminum segment. Befesa confirmed full-year 2025 EBITDA guidance in the lower part of EUR 240–265m, expects a strong Q4 (higher EAF dust volumes), and targets net leverage below 2.5x by year-end (guided toward 2.0–2.5x with the potential to approach ~2.0x). CapEx for 2025 is expected around EUR 80–90m (maintenance ~EUR 40–45m; Bernburg growth spend ongoing), with Bernburg construction started (permits in place) and Palmerton expansion practically completed and fully operational since July. The company continues an active hedging program (hedges to Q1 2027, avg hedged prices ~EUR 2,640–2,655/t) and remains committed to a dividend policy paying 40–50% of net income.