N.V. Bekaert S.A.

Bekaert said H1 2025 delivered an EBITu margin of 8.8% and free cash flow of EUR 123 million. Working capital improved by EUR 135 million versus H1 2024, overheads were down EUR 21 million year on year, and SG&A fell from EUR 157 million to EUR 139 million. Seppo also flagged a non-cash EUR 56 million CTA one-off tied to Venezuela devaluations. For full-year 2025, management expects slightly lower sales on a comparable like-for-like basis versus 2024 and EBITu margin in the range of 8% to 8.5%; CapEx is now expected below EUR 150 million, maybe toward EUR 140 million.

Yves Kerstens framed the quarter as evidence that Bekaert’s long-term strategy is working through portfolio rationalization, pricing discipline, and cost efficiency. He emphasized strong execution on cost reduction, cash generation, and business transformation, while noting that the company is preparing for future growth through innovation, sustainability, and selective M&A. His tone was cautious on the macro backdrop, especially around tariffs and demand in the second half, but confident that Bekaert is becoming more cost competitive and better positioned to benefit when volumes recover.

Seppo Parvi focused on the mechanics behind the resilient margin and cash flow. He pointed to a 4.3% like-for-like sales decline, a 1.1% FX headwind, negative 2.2% price/mix and raw material impact, and a 2% net volume decline, while highlighting that margins were protected by cost control and mix improvements. He also detailed a working-capital ratio of 16.3% of net sales versus 18.4% a year ago, said inventory improvements came from consignment stock, safety stock and production planning actions, and guided CapEx lower than the prior EUR 150 million to EUR 160 million range, now toward EUR 140 million.

Analysts focused on the split between price and volume in the outlook, the drop in gross margin, the sustainability of BBRG’s near-10% margin, inventory reductions, and whether tariffs are changing customer behavior or supply chains. Management said the sales outlook is mainly being shaped by FX and portfolio changes, not a dramatic shift in mix or pricing, and that price increases have already been used to offset tariffs where possible. They also said inventory improvements were driven by consignment stock, safety stock and planning changes, BBRG’s margin should remain sustainable with further upside if volumes improve, and they do not yet see major structural sourcing changes from tariffs, though they are watching for future shifts.