Recticel Once Again Outperforming Markets

PRESS RELEASE

Regulated information – Inside information      

Brussels, 29 August 2025 – 07:00 CET                 

FIRST-HALF 2025 RESULTS

Once Again Outperforming Markets

•     Sales up 12.3% in H1 2025 from EUR 298.6 million to EUR 335.2 million

•     Strong volume growth both in Insulation Boards and Insulated Panels in flat or contracting markets 

•     Adjusted EBITDA up 10.4% from EUR 25.1 million to EUR 27.7 million

•     Net cash position at EUR 50.4 million

•     Major investments progressing as planned

•     Write-off of vendor loan to minority owned Ascorium (EUR 11.5 million)

•     FY 2025 outlook: the Group expects an Adjusted EBITDA of approximately  EUR 55 million, a YoY growth of 10%

Jan Vergote, Chief Executive Officer, commented:

“Recticel is pleased to announce its third consecutive half year organic sales growth since the start of the contraction of the European building industry. We are once again outperforming tough markets, and deflationary input cost trends. Like for like sales have grown double-digit in key geographies such as Benelux, United Kingdom and Central Europe and occurred both in Insulation Boards and Insulated Panels.

Recticel continues to execute its operational excellence value creation plan, resulting in significantly higher plant and labour productivity, and upward revisions of  plant capacities. At the same time, we are selling more added value products such as Powerdeck^®+, Trimo Modular Space Solutions and our unique Qbiss One architectural façades.

Our strategic investment in a greenfield facility for both mineral wool and PIR Insulated Panels in Tennessee (US) is progressing as planned, and we expect to start production in Q4 2026. Our industry leading recycling plant in Wevelgem (BE) is planned to be operational in Q1 2026.

We will continue executing our strategic growth plan through both M&A and organic initiatives, backed by substantial headroom on our balance sheet.

Given the ongoing weakness in the global automotive market and the effects of tariffs on European car makers, we have written off our vendor loan (EUR 11.5 million) to Ascorium, our minority owned automotive interiors activity.

OUTLOOK

Some residential and non-residential geographical markets start to show slightly higher levels of permitting, but most of that has not reached the construction phase. Price competition remains fierce across markets and product lines. 

We anticipate further high single-digit growth in the second half of the year and expect the full year 2025 Adjusted EBITDA to reach approximately EUR 55 million, compared to EUR 49.6 million in full year 2024.

1      Consolidated Group results – key figures^[1]

in million EUR

Q2 2025 sales increased by 11.8% from EUR 158.0 million to EUR 176.8 million, including -0.03% currency effect.

H1 2025 sales increased by 12.3% from EUR 298.6 million to EUR 335.2 million, including +0.36% currency effect.

Adjusted EBITDA increased by 10.4% from EUR 25.1 million in H1 2024 to EUR 27.7 million in H1 2025. Despite high competitive pressure, adjusted EBITDA margin on sales remained stable at 8.3%, thanks to better product mix and higher productivity.

Adjusted operating profit (loss) from EUR 9.8 million in H1 2024 to EUR 12.0 million in H1 2025. Adjusted operating profit (loss) margin on sales increased from 3.3% to 3.6%.

Adjustments to Operating profit (loss) on continuing operations in H1 2025 amount to  EUR -3.7 million and include:

•        EUR -2.9 million of restructuring costs mainly related to Ascorium (EUR -2.25 million) and the closure of the thermo-acoustic boards plant in Angers, France;

•        EUR -0.6 million of other adjustments;

•        EUR -0.2 million of impairments of the assets of the thermo-acoustic boards plant in Angers.

EBITDA from EUR 21.9 million in H1 2024 to EUR 24.6 million in H1 2025. EBITDA margin on sales remained stable at 7.3%.

Operating profit (loss) from EUR 6.6 million in H1 2024 to EUR 8.7 million in H1 2025. Operating profit (loss) margin on sales increased from 2.2% to 2.6%.

Financial result from EUR 2.2 million in H1 2024 to EUR -1.6 million in H1 2025.

Interest charges have decreased from EUR -1.2 million in H1 2024 to EUR -1.0 million in H1 2025.   The interest income has decreased from EUR 3.1 million in H1 2024 to EUR 1.2 million in H1 2025 due to lower interest rates and lower cash.

Other net financial income and expenses: from EUR 0.4 million in H1 2024 to EUR -1.8 million in H1 2025 due to the GBP exchange rate evolution.

Income and impairment from other associates from EUR 0 million¹ in H1 2024 to EUR -11.5 million in H1 2025, due to the impairment of the Ascorium vendor loan (EUR 11.5 million).

Income and deferred taxes from EUR -4.3 million in H1 2024 to EUR -1.3 million in H1 2025.

•        Current income tax: from EUR -3.3 million in H1 2024 to EUR -2.9 million in H1 2025.  H1 2024 income tax included an amount of EUR -0.6 million relating to 2023. Income taxes for the current year have increased in line with the higher operating results;  

•        Deferred tax: from EUR -1.0 million in H1 2024 to EUR 1.6 million in H1 2025. 

Result of the period of continuing operations from EUR 4.5 million in H1 2024 to EUR -5.8 million in H1 2025.

Result from discontinued operations from EUR 2.0 million in H1 2024 to EUR 5.5 million in H1 2025.

The result from discontinued operations in H1 2025 mainly represents: 

•        the release of  indemnity provisions on the divestment of Recticel Engineered Foams to Carpenter for EUR 5.0 million; 

•        the release of indemnity provisions on the divestment of Bedding to Aquinos for EUR 1.1 million;

•        offset by direct attributable costs to discontinued operations of EUR -0.6 million.

Consolidated result of the period (share of the Group) from EUR 6.6 million in H1 2024 to  EUR -0.3 million in H1 2025.

2     Financial position

in million EUR

3     Sustainability

While delivering continued strong sales growth in H1 2025, we succeeded in achieving an additional 8.5% reduction in scope 1 and 2 GHG emissions compared to the same period last year. This progress reinforces our confidence in meeting our voluntary SBTi commitment to reduce scope 1+2 GHG emissions by 90% by 2030. Measured against our 2021 SBTi base year, emissions over the first six months of 2025 are already down by 41.6%. 

Furthermore, carbon intensity per m³ of material sold decreased by 14.7%, demonstrating a clear reduction in embodied carbon.

Scope 1+2                                                                 2.1              1.8           -14.7%                                                              

*     H1 2021 GHG emissions are 50% of FY 2021 SBTi base year emissions.

The sustainability data reported in this press release have not been reviewed by the statutory auditor. 

4      Appendices

All figures and tables contained in these appendices have been compiled in accordance with the IFRS accounting and valuation principles, as adopted within the European Union. The applied valuation principles, as published in the latest annual report at 31 December 2024, were applied for the figures included in this press release.

The analysis of the risk management is described in the annual report and the IAS 34 Interim report per 30 June 2025, both which are available fromwww.recticel.com.

4.1 Condensed consolidated income statement

in thousand EUR  

of which non-controlling interests                                                                                                                   (75)                         (2)  

* Compared to the Interim report 2024, the amortizations/depreciations on purchase price allocations as a result of acquisitions have been reclassified from General and administrative expenses to other operating expenses.

¹ Income from other associates = income from associates not considered as being part of the Group’s core business are not integrated in Operating profit (loss); i.e. Ascorium Holding GmbH (formerly TEMDA2).

4.2 Earnings per share

4.4 Consolidated statement of financial position

                                                                                                                                                                                   in thousand EUR

4.5 Consolidated statement of cash flow

                                                                                                                                                                                   in thousand EUR 

* Compared to the Interim report 2024, the lease payments have been reclassified from Investments in property, plant and equipment to the Decrease of lease debt.

4.6 Consolidated statement of changes in shareholders’ equity for year ending 30 June 2025

in thousand EUR

4.7 Reconciliation with alternative performance measures

in thousand EUR

4.8 Glossary

IFRS MEASURES

Consolidated (data): financial data following the application of IFRS 11, whereby joint ventures and associates are integrated on the basis of the equity method.

ALTERNATIVE PERFORMANCE MEASURES

In addition, the Group uses alternative performance measures (Alternative Performance Measures or "APM") to express its underlying performance and to help the reader to better understand the results. APM are not defined performance indicators by IFRS. The Group does not present APM as an alternative to financial measures determined in accordance with IFRS and does not give more emphasis to APM than the defined IFRS financial measures.

Adjusted EBITDA: EBITDA before Adjustments (to Operating Profit).

Adjusted operating profit (loss): Operating profit (loss) + adjustments to operating profit (loss).                       

Adjustments to Operating profit (loss) include operating revenues, expenses and provisions that pertain to restructuring programmes (redundancy payments, closure & clean-up costs, relocation costs,...), reorganisation charges and onerous contracts, impairments on assets ((in)tangible assets and goodwill), revaluation gains or losses on investment property, gains or losses on divestments of non-operational investment property, and on the liquidation of investments in affiliated companies, revenues or charges due to important (inter)national legal issues and costs of advisory fees incurred in relation to acquisitions or business combination projects, costs of advisory fees incurred in relation to acquisitions, divestments or business combination projects, including fees incurred in connection with their financing and reversals of inventory step up values resulting from purchase price allocations under IFRS 3 Business Combinations.

Current ratio: Current assets / Current liabilities.

EBITDA: Operating profit (loss) + depreciation, amortisation and impairment on assets; all of continued activities.

Gearing: Net financial debt / Total equity.

Income from associates: Income considered as being part of the Group’s core business are integrated in Operating profit (loss).

Income from other associates: Income from associates not considered as being part of the Group’s core business are not integrated in Operating profit (loss).

Leverage: Net financial debt / EBITDA (last 12 months).

Margin: EBITDA margin, Adjusted EBITDA margin, Operating Profit (loss) margin and Adjusted operating profit (loss) margin are expressed as a % on Sales 

Net free cash-flow: Sum of the (i) Net cash flow after tax from operating activities, (ii) the Net cash flow from investing activities, (iii) the Interest paid on financial liabilities and (iv) reimbursement of lease liabilities; as shown in the consolidated cash flow statement.

Net financial debt: Interest bearing financial liabilities and lease liabilities at more than one year + interest bearing financial liabilities and lease liabilities within maximum one year + accrued interests – cash and cash equivalents + Net marked-to-market value position of hedging derivative instruments. The interest-bearing borrowings do not include the drawn amounts under non-recourse factoring/forfeiting programs.

Net working capital: Inventories and contracts in progress + Trade receivables + Other receivables + Income tax receivables – Trade payables – Income tax payables – Other amounts payable

Operating profit (loss): Profit before income from other associates, fair value adjustments of option structures, earnings of discontinued activities, interests and taxes. Operating profit (loss) comprises income from associates of continued activities.

Total net financial debt: Net financial debt + the drawn amounts under off-balance sheet non-recourse factoring programs.

Uncertainty risks concerning the forecasts made

This press report contains forecasts which entail risks and uncertainties, including with regard to statements concerning plans, objectives, expectations and/or intentions of the Recticel Group and its subsidiaries. Readers are informed that such forecasts entail known and unknown risks and/or may be subject to considerable business, macroeconomic and competition uncertainties and unforeseen circumstances which largely lie outside the control of the Recticel Group. Should one or more of these risks, uncertainties or unforeseen or unexpected circumstances arise or if the underlying assumptions were to prove to be incorrect, the final financial results of the Group may possibly differ significantly from the assumed, expected, estimated or extrapolated results. Consequently, neither Recticel nor any other person assumes any responsibility for the accuracy of these forecasts.

About Recticel 

Recticel is a Belgian insulation Group with a strong presence in Europe and the USA. It offers smart insulation solutions that advance a carbon-free economy and a better quality of life.  

Recticel delivers upon a portfolio of Insulation Boards, Insulated Panels and Acoustic Solutions.

Recticel Insulation designs polyurethane thermal and thermo-acoustic boards for optimal building comfort and energy efficiency. This includes vacuum insulation panels (VIP) by Turvac.

Trimo enables the highest aesthetic standards and extends architectural capabilities with its mineral wool insulated panels and modular space solutions, primarily in non-residential applications. With the acquisition of  REX Panels & Profiles, the portfolio now includes PIR insulated panels.

Soundcoat provides acoustic solutions used in some of the world’s leading technological innovations.

At the end of 2024, Recticel employed 1,275 people and had achieved sales of EUR 610.2 million. Its operations are spread over seven countries.

The Science Based Targets initiative (SBTi) approved Recticel’s near-term targets for the reduction of  scope 1, 2 & 3 greenhouse gas emissions by 2030 (from base year 2021) and net-zero targets for 2050.

CDP added Recticel to its 2024 A list for Climate Change.

Recticel is listed on Euronext in Brussels (Euronext: RECT - Reuters: RECT.BR - Bloomberg: RECT:BB).

Financial calendar 

Recticel NV/SA

Bourgetlaan 42 avenue du Bourget

1130 Brussels

Belgium

This press release is available in English and Dutch on www.recticel.com.