In This Article:
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EBITDA: EUR102 million for Q1 2025, demonstrating resilience in a challenging business climate.
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Cash Flow: EUR99 million generated in Q1 2025, with a 29% increase in production.
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Net Debt: EUR1.2 billion, with a slight increase of EUR75 million due to strong cash flow and a dividend payment of EUR77 million.
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Production Increase: 29% overall, with an 80% increase in Europe.
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Working Capital: Reduced by EUR6 million despite increased production.
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CapEx: EUR57 million, reflecting an expansion phase.
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Free Cash Flow: EUR42 million for the quarter.
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Dividend Payment: EUR0.31 per share in January, with the next payment in July.
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Order Book: Solid order book in both stainless steel and high-performance alloys (HPA).
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Acerinox SA (ANIOY) reported a strong EBITDA of EUR 102 million in a challenging business climate, demonstrating resilience.
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The company generated EUR 99 million in cash flow during the quarter, despite a 29% increase in production.
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Acerinox SA (ANIOY) successfully reduced working capital by EUR 6 million, showcasing effective management.
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The company has a solid order book, particularly in the United States, indicating strong future performance.
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Acerinox SA (ANIOY) is focusing on geographical diversification, producing on three continents, which mitigates exposure to regional recessions.
Negative Points
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Profits were below Q1 2024 levels, partly due to market corrections and tariff-related uncertainties.
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The European market remains weak with low prices and no signs of demand reactivation.
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Net debt increased by EUR 75 million, influenced by dividend payments, CapEx, and currency conversion effects.
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The chemical process industries are experiencing delays in capital investments due to market uncertainties.
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The company faces ongoing challenges from imports gaining market share in the United States.
Q & A Highlights
Q: Could you share more details on the progress of the strategic plan in Europe, particularly regarding profitability in Q1 and the breakeven target for Q2? A: The strategic plan is progressing well, focusing on end-user business and added value products. While we initially expected to reach breakeven by the end of Q2, the current pricing situation has postponed this target slightly. However, we are close to achieving it. - Bernardo Velazquez Herreros, CEO
Q: How did Haynes contribute to Q1 results, and do you expect an improvement in the aerospace supply chain disruptions in the second half? A: Haynes is expected to contribute more significantly in the second semester, especially in aerospace and oil and gas sectors. The disruptions from last year are improving, and we anticipate stable deliveries in the second half. - Miguel Ferrandis, Chief Corporate Officer