EQS-News: Befesa delivers resilient H1 2025 performance, net profit doubles to €40m, adjusted EBITDA up 9% to €112m and sees stronger H2

PRESS AND INVESTOR ANNOUNCEMENT

H1 2025 results

Befesa delivers resilient H1 2025 performance, net profit doubles to €40m, adjusted EBITDA up 9% to €112m and sees stronger H2

 

• Adjusted EBITDA: H1 2025 Adj. EBITDA at €112m, +9% yoy (H1 2024: €103m), demonstrating operational resilience despite lower volumes due to maintenance activities
• Net profit: H1 2025 net profit at €40m, +100% yoy (H1 2024: €20m), reflecting strong underlying performance
• Leverage: Net leverage reduced to x2.7 as of June 2025 (June 2024: x3.4), continuing deleveraging trajectory
• EPS: Earnings per share doubled to €1.00 (H1 2024: €0.50), reflecting improved profitability
• Outlook 2025: EBITDA guidance confirmed at €240m-€265m, expecting stronger H2 driven by higher volumes across all markets

 

Luxembourg, 30 July 2025 – Befesa S.A. (“Befesa”), the leading provider of hazardous waste recycling services enabling the circular economy within the steel and aluminium industries, released its H1 2025 results. Befesa demonstrated operational resilience despite lower volumes due to maintenance activities across its plants.

In H1 2025, total revenue decreased by 3% year-over-year to €602m (H1 2024: €621m). Adjusted EBITDA increased by 9% year-over-year to €112m (H1 2024: €103m). Net profit doubled to €40.1m (H1 2024: €20.0m), demonstrating strong underlying performance. This robust performance was driven by lower zinc treatment charges, favourable zinc hedging prices, and operational improvements, which more than compensated for temporary volume impacts from maintenance activities. With Q2 remaining stable throughout the period, Befesa has established a solid foundation for a stronger second half of the year.

Operational highlights

Throughput of electric arc furnace (EAF) steel dust volumes decreased by 10% year-on-year to 550 kt, with an average capacity utilisation of 64%. The reduction was driven by annual maintenance shutdowns during the first half of the year.

Befesa expects significantly higher steel dust volumes in H2 across all markets, supported by existing high inventory levels built during maintenance periods and the completion of most scheduled plant maintenance activities.

In Europe, despite challenging market conditions, daily steel dust deliveries from EAF steel customers remained in line with 2024 averages at good levels, demonstrating the resilience of Befesa’s business model, based on strong customer relationships and market position. The company continues to advance new EAF steel dust projects that will drive long-term growth in the European market.

In the US, steel dust volume has also been lower due to annual maintenance activities. The two new kilns in Palmerton will be operational throughout H2, with new EAF steel supply contracts set to commence delivery in the second half after some start-up delays. These new EAF steel dust projects will be key drivers of Befesa’s growth in the short to mid-term. The zinc refining plant in North Carolina continued its cost reduction measures, delivering results as expected.

In Asia, load factor in Korea improved to 75% in H1 2025, supported by increased domestic deliveries and strong operational execution, whilst China remains subdued at low utilisation and break-even earnings.

Recycled volumes of aluminium salt slags decreased by 4% to 213 kt, maintaining a solid capacity utilisation of 92%. The salt slags recycling business performed well throughout the period. Secondary aluminium alloys volumes decreased by 8% to 83 kt, with capacity utilisation at 78%. The performance was impacted by continued compressed aluminium metal margin driven by weak automotive demand combined with challenging access to aluminium scrap in Europe, as well as lower volume.

Zinc LME prices averaged €2,514/t in H1 2025 (+3% year-on-year) compared to €2,444/t in H1 2024. Zinc treatment charges for 2025 were set at $80/t, representing a significant 52% decrease from the previous year (2024: $165/t), marking an all-time low. Befesa’s zinc price hedging for 2025 averaged €2,629/t, providing c.€120 per tonne higher than 2024 levels, representing approximately €20m incremental EBITDA benefit. Aluminium alloy prices increased by 4% year-on-year, averaging €2,420/t in H1 2025.

Energy prices in H1 2025 showed mixed trends. Coke prices continued their gradual downward trend to €163/t in Q2 2025, consolidating the normalisation compared to previous quarters. However, electricity and gas prices experienced some normalisation in Q2 2025, with electricity at €89/MWh and gas at €48/MWh.

In H1 2025, Befesa’s operating cash flow amounted to €64m (H1 2024: €70m). Liquidity remained robust with cash on hand of €96.5m at H1 2025 closing (H1 2024: €107.9m). Net leverage continued improving to x2.7 (H1 2024: x3.4), continuing the company’s disciplined deleveraging trajectory. Befesa expects leverage to fall below x2.5 by year-end 2025.

Growth initiatives

Befesa’s strategic growth initiatives continue to progress well. This is supported by new EAF steel production projects of Befesa’s customers which will drive expansion opportunities across Befesa key markets. Whilst some EAF projects of steel makers have been paused in response to market conditions, the majority of them remain on track and will underpin future growth for Befesa.

Befesa’s Palmerton plant refurbishment in Pennsylvania is almost completed, with the second kiln being hot commissioned in Q3 2025. This expansion will increase EAF steel dust recycling capacity from approximately 163 kt to 220 kt post-refurbishment, representing a key driver of US growth in the short to mid-term.

Befesa’s Bernburg expansion in Germany continues to move forward with permits and commercial contracts, targeting Q3 2025 to obtain final permits. This project will expand aluminium alloy production capacity from 75 kt to 135 kt, with completion expected by the end of Q2 2026.

Asier Zarraonandia, CEO of Befesa, commented: “Our resilient H1 performance demonstrates our ability to deliver continued EBITDA growth and double net profit even during periods of planned maintenance activities. This reflects the benefits of historically low zinc treatment charges and our successful hedging strategy. Q2 has been stable, setting the foundation for what we expect to be a significantly stronger second half. With all major maintenance activities now completed in the first two quarters, we are well-positioned to capture the full benefits of substantially higher volumes and operational efficiency in H2, and we are confident we will deliver our full-year guidance.”

Outlook

Befesa expects a stronger second half of 2025, driven by significantly higher EAF dust volumes across all markets following the completion of most maintenance activities in the first half. The company has strong confidence in steel dust volumes for H2, whilst maintaining a more cautious outlook on aluminium markets where visibility remains limited due to ongoing automotive sector challenges. The company confirms its full-year 2025 adjusted EBITDA guidance range of €240m to €265m, representing growth of 13% to 24% year-over-year versus the 2024 baseline (2024: €213m).

This confidence is underpinned by several positive factors: the completion of most planned maintenance activities in H1, higher zinc hedging levels providing earnings visibility, improved operational efficiency particularly in the US, and the contribution from the expanded Palmerton facility. The guidance range accounts for continued challenges in the secondary aluminium business due to compressed metal margins, ongoing weakness in the Chinese market as well as zinc LME price volatility.

Befesa maintains its target of achieving net leverage below x2.5 by year-end 2025, with a longer-term goal of x2.0 to x2.5 from 2025 onwards. Growth capital expenditure remains focused on the approved Palmerton and Bernburg projects, with total annual capex expected to be between €80 and €90m (previous below €100m). Earnings per share (EPS) is expected to be above 2.0 (previously above 1.8).

 

Key figures

in €m	H1 2024	H1 2025	Change	Q2 2024	Q2 2025	Change
Revenue	621.2	601.6	-3.1%	322.8	293.2	-9.2%
Adj. EBITDA	103.1	112.1	8.7 %	54.5	56.3	3.2%
Net profit	20.0	40.1	100.0 %	10.6	21.4	102.6 %
EPS (€)	0.50	1.00	100.0 %	0.26	0.54	102.6 %
Operating cash flow	70.4	64.4	- 8.5%	55.8	30.4	-45.5%
Net debt	645.6	601.1	- 6.9%	645.6	601.1	- 6.9%
Net leverage	x3.39	x2.70		x3.39	x2.70

 

 

Webcast

Befesa will host a webcast on its H1 2025 results at 8.30 CEST on 30 July 2025. Further details, a replay and other events are available on Befesa’s website: www.befesa.com

 

Financial calendar

The financial calendar for 2025 is available in the Investor Relations / Investor’s Agenda section of Befesa’s website. For more information, please visit www.befesa.com

 

About Befesa

Befesa is a leading player in the circular economy, providing environmental, regulated services to the steel and aluminium industries with facilities located in Germany, Spain, Sweden, France, as well as in Turkey, South Korea, China and the US. Through its two business units, Steel Dust and Aluminium Salt Slags recycling services, which are a critical part of the circular economy, Befesa manages and recycles around 1.9 million tonnes of residues annually, with a production of around 1.7 million tonnes of new materials, which Befesa reintroduces in the market, reducing the consumption of natural resources. Further information is available on the Company’s website: www.befesa.com

 

Investor Relations

Email: irbefesa@befesa.com

Phone: +49 2102 1001 0

 

Media Relations

Richard Rigby

Email: richard.rigby@kekstcnc.com

Phone: +44 7970 767607