Italy's De Nora expects lower margin in demanding 2026 (updated)

thyssenkrupp nucera AG & Co KgaA

18/03/2026 11:42

Recasts, adds CEO quote in par 3, shares in par 4, broker comment in par 6, CFO comment in par 8

By Mirko  Miorelli

March 18 (Reuters) - Italy's Industrie De Nora DNR.MI on Wednesday warned that it faced a "demanding" 2026 in which its profit margin would decline, sending its shares down by as much as 9.2%.

The company said it now expects its adjusted core profit margins to be in the 15%-19% annual range over the next 3-5 years. Its 2025 core profit margin was 19.6%.

"We are preparing to face a demanding year, marked by new and complex challenges" CEO Paolo Dellachà said in a statement.

Shares in De Nora recovered some losses to trade down 4.5% at 1110GMT.

MID-TERM FOCUS ON EXPANDING INTO NEW MARKETS

De Nora's mid-term strategy will focus on expanding into new markets through electrochemistry and water treatment technologies, Dellachà said.

Brokerage Jefferies said the company looks well-positioned to benefit from a potential pick-up in the hydrogen market, but saw limited upside potential until then, with low visibility in hydrogen business weighing on the 2026 and mid-term outlook.

The company confirmed the preliminary figures it reported on February 24 for full-year revenue and adjusted core profit.

Acquisitions in new sectors, including semiconductors and pharmaceuticals are a priority for De Nora, as it looks to broaden its customer base and enter fast-growing markets, CFO Luca Oglialoro said in a post-earnings call.

Asked about raw materials, the company's finance chief added that De Nora is not facing shortages of supply, but is instead dealing with higher input costs, which are planned to be transferred to the final product.

De Nora said revenue from its core electrode and water Technologies businesses is expected to grow by 2%–4% annually over the next three to five years. It proposed a dividend of 0.103 euros per share.

($1 = 0.8669 euros)

 (Reporting by Mirko Miorelli, editing by Matt Scuffham)

 ((Mirko.miorelli@thomsonreuters.com))