Agfa-Gevaert N.V.

Agfa said Q2 revenue in Imaging and Chemicals grew 2.6% excluding currency, with silver-price effects offsetting more than the volume decline. The company reported Q2 adjusted EBITDA as a solid performance, with Film and Chemicals EBITDA stepping up from EUR 4 million to EUR 9 million, and HealthCare IT current revenue declined 9.5% year over year, which management said was expected due to last year’s strong first half. Q2 free cash flow was negative EUR 10 million, net financial debt rose from EUR 58 million to EUR 74 million, leverage was 1.4x, and liquidity headroom remained above the EUR 30 million minimum. For H1, adjusted EBITDA was EUR 10 million higher than last year, free cash flow was negative EUR 52 million, and management reiterated a full-year cash out tied to transformation and restructuring, while expecting HealthCare IT momentum to continue, DPS to stay in growth mode, ZIRFON to remain subdued in 2026, and film profitability to be better than last year.

Pascal Juery framed the quarter as resilient but mixed, emphasizing that Agfa’s three growth engines are moving in different phases. He highlighted strong commercial momentum in HealthCare IT, including cloud migration, new logos, and accelerated order intake, while also saying DPS had returned to growth and ZIRFON remains a trough business in 2026 ahead of a hoped-for rebound in 2027. His tone was confident and repeated the message that “nothing is broken” in the growth engines, with the main near-term challenge being the cloud transition and the weak membrane cycle.

Fiona Lam focused on the financial bridge: Imaging and Chemicals benefited from savings that offset lower volume, adjusted EBITDA improved, and Q2 free cash flow of negative EUR 10 million was better than internal expectations despite restructuring cash out and pension outflows. She said the company has EUR 61 million of annualized savings from the transformation program, that net financial debt increased to EUR 74 million from EUR 58 million due to negative free cash flow, and that the company had drawn EUR 130 million on its EUR 180 million facility at quarter-end with sufficient covenant headroom. She also noted H1 adjusted EBITDA was EUR 10 million above last year and explained that H1 free cash flow of negative EUR 52 million was impacted by about EUR 45 million of silver-related working capital build.

Analysts pressed on whether the transformation program was truly self-funding after EUR 30 million of H1 cash out; management said the program generates more than EUR 60 million of recurring annual savings, but the cash timing differs by quarter, and they indicated full-year cash out for the Moonshot program could be around EUR 60 million. On AgfaPhoto, management said the Frankfurt court ruling was procedural, not on the merits, that they have appealed, and that they expect no impact on the cash already received. On HealthCare IT, they said AI development is already embedded in current R&D spending of close to EUR 40 million on a roughly EUR 240 million business, with AI improving coding productivity, diagnostics, and workflow automation, so no extra AI budget is needed; they also confirmed the cloud platform can integrate third-party applications.