N.V. Bekaert S.A.

Bekaert reported H1 2025 sales were down 4.3% like-for-like, with foreign exchange a 1.1% drag and price/mix plus raw material impact down 2.2%; net volume was down 2%. The company reported an EBITu margin of 8.8% and free cash flow of EUR 123 million. Working capital improved by EUR 135 million versus H1 last year, to 16.3% of net sales versus 18.4% a year ago, and selling and administrative expenses fell to EUR 139 million from EUR 157 million. Management also noted a non-cash EUR 56 million CTA one-off tied to Venezuela currency devaluations. For 2025, Bekaert expects slightly lower like-for-like sales versus 2024 and an EBITu margin between 8% and 8.5%.

Yves Kerstens emphasized that the first half showed the benefits of Bekaert’s long-term strategy: portfolio rationalization, pricing discipline, and cost efficiency. He said the company passed through the first wave of tariffs successfully, but the 50% duty level is harder to offset and raises concern about second-half demand. He also highlighted continued portfolio actions, rightsizing, innovation in construction and tire solutions, and the view that the company is positioning itself for a recovery when growth returns.

Seppo Parvi focused on sales bridge mechanics, margin protection, and cash generation. He said overheads were reduced by EUR 21 million year over year, working capital improved by EUR 135 million, and free cash flow reached EUR 123 million, while working capital intensity fell to 16.3% from 18.4%. He also said CapEx is trending below the prior EUR 150 million to EUR 160 million range, now expected around EUR 140 million, with roughly half maintenance/health and safety and the rest growth and development.

Analysts pressed management on the second-half sales outlook, gross margin decline, inventory reduction, Steel Wire Solutions demand, and whether BBRG’s near-10% margin is sustainable. Management said the sales guide is mainly affected by FX and footprint changes, while tariff-related uncertainty still clouds end-demand; pricing has largely been used to offset tariffs, so the remaining issue is customer and consumer demand. On working capital, they said inventory gains came from consignment stock, safety stocks, and better production planning. On BBRG, they said the business is close to the 10% margin target and could be higher without softer volumes.