Aalberts N.V. (AMS:AALB) on Thursday reported a 13% drop in FY25 EBITA to €410 million, which was 2% above consensus expectations of €403 million. The results reflected an organic revenue decline and compressed margins across the business.
Top-line and margin drivers
Overall organic revenue fell 2.5% for the year, while the company recorded an EBITA margin that was 180 basis points lower at 13.2%. Management attributed the margin deterioration to mix effects and margin pressure in specific product areas across regions.
Cash flow and balance sheet
Free cash flow increased 8% to €361 million, outperforming consensus by 4% versus the €347 million estimate. The improvement in cash generation followed a pronounced reduction in inventories. Net debt rose to 1.8x EBITDA after accounting for mergers and acquisitions, up from 1.0x in FY24.
Segment performance
The Building segment, which represents 51% of Aalberts' revenues, recorded an 11% decline in EBITA to €183.5 million. Organic revenue grew 1.3% for Building, powered by the Americas, while conditions in Europe remained difficult. The segment's EBITA margin contracted by 120 basis points to 11.7% as negative mix effects and lower relative profitability in the Americas, together with margin headwinds in connection systems, weighed on results.
The Industry segment, accounting for 34% of revenues, saw EBITA fall 6% to €186.3 million. Organic revenue declined 2.8%, held back by subdued activity in automotive and machine build, even as aerospace, maritime and defence recorded growth. The Industry EBITA margin eased by 140 basis points to 17.2%, with cost savings helping to offset weaker volumes.
The Semicon segment, representing 16% of revenues, experienced the largest proportional decline, with EBITA down 24% to €54.5 million. Organic revenue in Semicon dropped 13.8% amid falling demand and a worsening trend, compounded by easier comparisons in the fourth quarter of 2025. The segment's EBITA margin decreased 230 basis points to 11.9%.
Unallocated costs increased by €10.8 million to €14.8 million, reflecting more than €15 million of mergers and acquisitions related costs.
Outlook and capital allocation
For FY26, Aalberts expects a recovery in both organic growth and the EBITA margin. The company projects a 3% recovery in EBITA to €421 million, driven by an expected 1.8% organic revenue increase and an assumed 5% recovery in the Semicon segment. Management anticipates the EBITA margin to rise 152 basis points to 14.6%.
On a portfolio basis, acquisition effects are estimated to contribute 4.0% to revenues, while divestment effects are expected to reduce revenues by 11.5%.
Shareholder returns include a proposed dividend of €1.15 per share and a €75 million share buyback programme, equivalent to approximately 2% of market capitalization.
Contextual note
The figures and expectations above reflect the company's reported FY25 results and the guidance provided for FY26. Where the company has quantified assumptions, those are reported verbatim.