Luxembourg's Befesa Q2 revenue rises on higher zinc prices
Luxembourg's Befesa Q2 revenue rises on higher zinc prices
Overview
Luxembourg hazardous waste recycler's Q2 revenue rose 4% yr/yr to €304 mln
Q2 adjusted EBITDA increased 17% yr/yr to €66 mln, driven by higher steel dust volumes
Company reaffirmed full-year adjusted EBITDA guidance of €250 mln–€270 mln
Outlook
Befesa reaffirms 2026 adjusted EBITDA guidance at €250m–€270m, up 3% to 11% yoy
Company expects earnings momentum to strengthen in H2 2026, led by US steel dust volumes
Befesa expects 2026 EPS to exceed €2.2 and net leverage around x2.0
Result Drivers
STEEL DUST VOLUMES - Higher EAF steel dust throughput, particularly from US operations, contributed to Q2 growth
ZINC PRICES - Increased LME zinc prices supported profitability in the quarter
COST EFFICIENCIES - Lower coke and electricity costs and improved margins in aluminium segment aided results
Company press release: ID:nEQ19cPR7a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | EUR 304.30 mln | EUR 292 mln (1 Analyst) |
Q2 EPS |
| EUR 0.61 |
|
Q2 Net Income |
| EUR 24.30 mln |
|
Q2 Adjusted EBITDA | Beat | EUR 66 mln | EUR 60 mln (1 Analyst) |
Q2 Adjusted Free Cash Flow |
| EUR 32.70 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 €42.00, about 21.9% above its July 28 closing price of €34.45
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago
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(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.)