Umicore drops as soft EV demand, metal prices weigh on FY earnings

Umicore SA

14/02/2025 09:11

** Shares in metals recycling and battery materials group
Umicore  UMI.BR  slump more than 8% as its FY results disappoint
    ** Hit by soft EV demand and falling metal prices, Umicore
reports FY adj net profit of EUR 255 mln ($267.11 mln), below
EUR 266 mln seen in Vara Research consensus
    ** Its FY EBITDA of EUR 763 mln comes in at the low-end of
its own guidance
    ** "The lack of positive earnings momentum and the strategic
uncertainty around Battery Materials makes it hard to find a
short term trigger," says KBC securities
    ** Umicore forecasts a 20% cut y/y in FY25 capex, which
J.P.Morgan sees as positive though it still implies a
"surprisingly significant" spend in the battery materials unit
    ** Umicore also cuts proposed dividend per share to EUR 0.5
from previous EUR 0.8
    ** The shares on track for their worst day since early-Dec.
2021, if losses persist, sitting at the bottom of Belgium's BEL
20  .BFX  blue-chip index 


($1 = 0.9547 euros)

 (Reporting by Anna Peverieri)
 ((Anna.peverieri@thomsonreuters.com))