CORRECTED-Belgium's Bekaert 2025 revenue misses, EBIT beats expectations

Overview

• Belgium steel wire maker's 2025 revenue missed analyst expectations

• Adjusted EBIT for 2025 beat analyst expectations

• Company reported strong cash flow of €314 mln, supported by cost management

Outlook

• Company expects 2026 revenues and margins similar to 2025 on a like-for-like basis

• Demand recovery in Sustainable Construction expected to continue in North America

• Growth expected in energy and utilities end markets due to recent contract wins

Result Drivers

• COST MANAGEMENT - Bekaert achieved significant cost savings and operational efficiency improvements, which helped mitigate lower sales impact on EBITu margin

• DEMAND SHIFTS - Slower growth in hydrogen market required operational adjustments, while robust demand in power and data transmission networks increased sales

• FOOTPRINT OPTIMIZATION - Strategic exit from lower-margin Latin American businesses and restructuring efforts aligned operations with market demand

Company press release: ID:nGNE576Zyj

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy."

• Wall Street's median 12-month price target for NV Bekaert SA is €37.50, about 15.2% below its February 25 closing price of €44.20

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

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