Overview
Germany biofuels producer's H1 revenue rose 18.9% yr/yr to EUR 893.7 mln
EBITDA for H1 increased to EUR 45.5 mln, driven by Bioethanol/Biomethane segment
Company returned to positive free cash flow in Q2, firming up FY 2025/26 forecast
Outlook
Verbio firms up FY 2025/26 EBITDA forecast at upper end of previous range
Company expects moderate reduction in net financial debt for FY 2025/26
Regulatory changes in Germany to impact biofuels market and GHG quota prices
Result Drivers
PRODUCTION INCREASE - Higher production volumes in Bioethanol/Biomethane segment due to ramp-up in North America and expanded capacity in South Bend
GHG QUOTA MARKET - Recovery of GHG quota market led to higher quota prices, boosting revenues
COST MANAGEMENT - Disproportionately low increase in raw material costs relative to revenue contributed to improved gross margin
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Sales
EUR 893.70 mln
H1 EBITDA
EUR 45.50 mln
H1 EBITDA Margin
5.10%
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the renewable fuels peer group is "buy"
Wall Street's median 12-month price target for Verbio SE is €24.50, about 4.5% below its February 11 closing price of €25.66
The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 81 three months ago
Press Release: ID:nEQ9QSFrca
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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.)