Umicore S.A.

Umicore reported H1 2026 revenue of EUR 1.9 billion, up 7% year over year, and adjusted EBITDA of EUR 577 million, up 33% year over year. Adjusted EBIT increased 47% to EUR 442 million, adjusted net result group share rose to EUR 273 million from EUR 135 million, and adjusted EPS doubled to EUR 1.14. Margin improved meaningfully, with adjusted EBITDA margin at 30.2% versus 24% a year ago, and ROCE rose to 23% from 16.4%. Free operating cash flow was EUR 295 million versus an outflow of EUR 54 million in H1 2025, while net debt rose to EUR 1.5 billion and leverage improved slightly to 1.5x. For the full year 2026, management raised adjusted EBITDA guidance to slightly above EUR 1 billion, assuming stable metal prices versus June 2026 and no major macro deterioration.

Bart Sap framed the first half as evidence that Umicore is executing better, with efficiency driving a larger share of earnings growth alongside a favorable metal price backdrop. He emphasized that the company is becoming more focused on high-quality organic growth, stronger margins and disciplined capital allocation, while still seeing opportunities in circular metals, data centers, germanium and stationary catalysts. His tone was confident but cautious, repeatedly noting that H2 should be lower than the exceptional H1 and that the macro environment remains volatile.

Wannes Peferoen highlighted that adjusted EBITDA of EUR 577 million was driven by broad-based volume and activity growth, ongoing top-line and efficiency measures, and favorable prices for precious and minor metals like cobalt. He cited cash flow from operations of EUR 565 million, working capital outflow of EUR 132 million, CapEx of EUR 130 million, and free operating cash flow of EUR 295 million; that cash flow was then absorbed by taxes, interest, dividends and EUR 175 million of equity contributed to Ionway in January. He also noted adjusted net finance charges of EUR 80 million, an adjusted tax rate of 21.3%, cash of EUR 1.8 billion, undrawn facilities of EUR 1.1 billion, gross debt of EUR 3.2 billion, and net gearing of 38.1%.

Analysts focused on tungsten, Battery Materials visibility, cobalt pricing, Catalysis market share, germanium exposure, hedging, and the sustainability of the H1 outperformance. Management said tungsten is being newly valorized from existing streams, mostly in Europe, and that Battery Materials remains supported by take-or-pay contracts even though European EV ramp-up has been slower than planned; they also said partnerships with Chinese battery players are becoming more plausible in Europe. On recycling and metals, management said the first half benefited from exceptional cobalt and precious-metals conditions that will normalize, while H2 and 2027 should be a more normal baseline; on hedging, they said 2027 Recycling impact should be neutral. They also confirmed customer interest in securing capacity in critical materials like germanium and stationary catalysts, including willingness to prepay or help fund expansion.