Luxembourg's Befesa FY adjusted EBITDA up 14% on stable throughput

Befesa SA

26/02/2026 06:39

Overview

Hazardous waste recycler's FY2025 adjusted EBITDA up 14% despite 5% revenue decline

EPS for FY2025 increased 58% yr/yr, driven by operational performance

Company achieved record operating cash flow and reduced leverage below target

Outlook

Befesa expects 2026 earnings growth driven by higher US steel dust volumes

Company targets net leverage around x2.0 in 2026

Zinc treatment charge expected to rise to $100-$130 per tonne in 2026

Result Drivers

STEEL DUST PERFORMANCE - Steel Dust segment's adjusted EBITDA rose 25% due to stable throughput and high utilization, driving overall results

ZINC PRICE AND HEDGING - Favorable zinc treatment charges and improved hedging prices boosted adjusted EBITDA despite revenue decline

COST MANAGEMENT - Lower operating costs contributed to improved EBITDA margin and earnings growth

Company press release: ID:nEQ2T180Wa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
EUR 290.80 mln
Q4 EPS
EUR 0.49
Q4 Net Income
EUR 19.80 mln
Q4 Adjusted EBITDA
Miss
EUR 69.10 mln
EUR 71 mln (1 Analyst)
Q4 Adjusted Free Cash Flow
EUR 97 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the environmental services & equipment peer group is "buy"

Wall Street's median 12-month price target for Befesa SA is €38.00, about 16.2% above its February 25 closing price of €32.70

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)