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Befesa Reports Solid Q3 Results Amidst Market Challenges

Befesa S.A. announced strong Q3 2024 results with a double-digit growth in adjusted EBITDA, reaching €49 million, showcasing resilience in a challenging environment. For the first nine months, adjusted EBITDA rose to €152 million. The Steel Dust segment showed robust performance in Europe and the USA, despite a weak steel market, with plants achieving high-capacity utilization rates. Revenue increased by 1% to €915 million for the first nine months of 2024.

The company extended its zinc price hedging to Q2 2026, improving earnings visibility, and reported a 62% increase in Q3 operating cash flow. Befesa remains committed to strategic growth with plant expansions in Palmerton and Bernburg. The company maintains an adjusted EBITDA guidance of €210-€215 million for FY2024 and anticipates strong performance into 2025.

Challenges remain in the Aluminium Salt Slags segment due to a weak European automotive market. However, improvements were noted in recycled aluminium volumes. Befesa focuses on deleveraging with a strategic plan targeting a reduced leverage ratio by 2025.

R. E.

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