Befesa SA reported preliminary fourth-quarter results showing top-line contraction alongside stronger operating profitability. Fourth-quarter revenue came in at €291 million, a 10% decline compared with the same period a year earlier.
Management attributed the revenue deterioration largely to nearly flat electric arc furnace (EAF) throughput - which edged down 1% - and foreign exchange pressures that dampened London Metal Exchange-linked pricing. Secondary aluminum alloy output fell 16% year-over-year to 37 kilotons in the quarter, while salt slag recycling volumes remained unchanged at 108 kilotons. Electric arc furnace steel dust throughput stood at 319 kilotons, down 1% from the prior-year quarter.
Despite the revenue slide, Befesa reported an improvement in adjusted EBITDA. The company recorded adjusted EBITDA of €69 million for the quarter, up 12% year-over-year, lifting the adjusted EBITDA margin to 23.7% from 19.0% in the prior-year period. Management said the margin expansion reflects higher utilization, particularly at its Palmerton operations in the United States.
On a full-year basis for 2025, Befesa reported revenue of €1,183 million, a 5% decline from the previous year, while adjusted EBITDA rose 14% to €243 million. The full-year EBITDA result landed at the lower end of the company’s guided range. Full-year earnings per share increased to €2.01, up 58% from €1.27 in 2024.
Cash generation improved in the period. Operating cash flow for the fourth quarter was €97 million, up 32% year-over-year, and full-year operating cash flow reached €212 million, up 10%. Net leverage decreased to 2.3x from 2.6x in the third quarter.
Looking ahead, management expects further earnings growth in 2026. The company cited continued ramp-up at Palmerton, resilient volumes across Europe, and steady performance in Asia as the drivers of that outlook. Befesa also provided a range for anticipated treatment charges of $100-130 per ton, compared with the current level of $80 per ton.
Operational snapshot - Q4
- Electric arc furnace steel dust throughput: 319 kilotons (-1% year-over-year)
- Secondary aluminum alloy production: 37 kilotons (-16% year-over-year)
- Salt slag recycling: 108 kilotons (flat year-over-year)
The results present a mixed picture: weaker revenue driven by volume and currency effects, but improved margin and cash conversion as utilization increases in key U.S. operations.