Bekaert: 2025 Full Year Results
2025 Full year results
Resilient results and strong cash flow supported by cost management and restructuring
FCF1 of €314m n Proposed dividend of €1.95 n Ongoing €200m share buyback
Bekaert delivered a resilient performance in 2025. The year was marked by shifts in global trade policies which created uncertainty and undermined demand. In addition, slower growth in the hydrogen end market required adjustment to bring footprint in line with demand outlook. At the same time, Bekaert has translated robust demand from investments in power and data transmission networks into increased sales and order books. Within these mixed global market dynamics, sales volumes remained flat versus 2024, while pass-through of lower input costs, currency and mix impacts and the strategic exit of lower margin business in Latin America reduced sales. Cost savings and tactical footprint utilization mitigated to large extent the impact of lower sales on the EBITu1 margin which reached 8.0% versus 8.8% last year. Cash generation was very strong with a Free Cash Flow of €314 million supported by working capital and cost reductions.
Yves Kerstens, CEO of Bekaert, commented: “2025 brought geopolitical and economic uncertainty, yet Bekaert delivered a solid performance that reflects the benefits of our ongoing transformation. Despite market volatility and softer demand in several end markets, our teams have realized significant cost savings, while also securing important contract wins. We have further optimized our business portfolio and reshaped our footprint to strengthen performance. Our cash generation and strong balance sheet further underline the progress we have made and the foundations we have built for long‑term value creation. Heading into 2026, our contract wins will secure growth in energy and utilities and construction end markets balancing conditions in the core businesses that remain challenging. We are committed to supporting our customers and reconnecting with growth and we continue to deliver on our strategy to strengthen our position in key markets and regions. Our growing agility and lowered cost base positions us well to navigate challenges and grasp opportunities.”
Financial highlights
- Q4 2025 stable like-for-like2 sales versus Q4 2024
- Like-for-like volume growth of +2% (€+16 million)
- Effects from pass-through of lower input costs and price-mix of -2% (€-15 million)
- Total consolidated sales of €873 million (-7%) through currency impact of -4% (€-42 million) and exit of commoditized businesses in Latin America (-3% or €-29 million)
- Full year 2025 consolidated sales of €3.7 billion (-6%) and like-for-like sales2 down -2% (€-95 million)
- With stable volumes (€+10 million) and a combined effect from pass-through of lower input costs and price-mix of -3% (€-105 million)
- Impact of acquisitions, disposals and discontinued operations of -1% (€-55 million) and currency translation impact of -3% (€-102 million)
- Underlying gross profit margin reduced to 16.0% versus 17.3% in FY 2024 primarily through weaker demand in construction and energy transition end markets
- Structural improvements in cost base and footprint
- €40 million reduction in overhead costs
- €39 million operational efficiency improvements through structural cost savings in production entities and improved capacity utilization in Asian footprint of Rubber Reinforcement
- €-162 million one-off restructuring and impairment charges to adjust footprint in line with demand, of which only €-8 million cash impact
- Creditable margin performance with structural actions and cost pass-through mitigating impacts from tariffs, unfavorable product and regional mix, currencies and disposals
- EBITDAu3 of €469 million (-10%), EBITDAu margin on sales of 12.7% (vs 13.1% in FY 2024)
- EBITu of €297 million (-15%), EBITu margin of 8.0% (vs 8.8% in FY 2024)
- EPSu3 of €4.52 (-19% vs €5.55 in FY 2024) while lower reported EPS of €1.33 (-71% vs €4.56 in FY 2024) as a consequence of restructuring and impairment costs
- Very strong cash generation through disciplined working capital and capital expenditure management
- Free Cash Flow (FCF) of €314 million, up 63% compared to €193 million in FY 2024
- Limited net €-8 million cash impact from the €-162 million one-off charges
- Further net debt reduction (€180 million vs €283 million at FY 2024) resulting in a net debt to EBITDAu of 0.4x (vs 0.5x at FY 2024)
- Proposed dividend increase from €1.90 to €1.95 per share, alongside ongoing €200 million share buyback
Operational and strategic highlights
- Rubber Reinforcement
- Strong volume growth in China offsetting lower demand in Europe
- Sustained profitability with efficiency improvements offsetting price and mix impacts
- Steel Wire Solutions
- Strong volume growth in energy and utilities end markets, particularly in North America
- Unfavorable mix in Europe mostly offset by cost savings
- BBRG
- Large contract wins in synthetic ropes
- Weaker steel rope end markets in Europe and North America
- Specialty Businesses
- Sustainable Construction: growth in India and Middle East and recovery in H2 2025 in North America partly mitigated the challenging market in Europe and a weak H1 2025 flooring market in North America
- Slower growth in energy transition end markets required adjustments across the business
- Proactive actions in 2025 to optimize portfolio and adjust the footprint in line with market outlook
- Reposition Steel Wire Solutions into higher margin markets by exiting commoditized Latin American businesses (€-37 million one-off charges4)
- Pause of hydrogen production activities in Belgium and consolidation into one plant to adjust to the delayed market, while maintaining flexibility to scale up when demand improves (€-55 million one-off charges)
- Consolidation of synthetic ropes manufacturing into Belgium (€-14 million one-off charges in BBRG)
- Footprint restructuring in tire reinforcement activities (€-40 million one-off charges in RR)
- Focus on operational improvements and cost savings in all divisions and functions
- Bekaert’s sustainability efforts were recognized by CDP with an 'A' score for Climate Change in 2025, underscoring our leadership in environmental transparency and our commitment to creating value through sustainability
Outlook
Going into 2026, demand recovery in Sustainable Construction, particularly in North America, is expected to continue. Growth is also expected in energy and utilities end markets supported by recent contract wins and higher order books. The business environment in the bigger and more mature markets of tire reinforcement, steel ropes and non-transmission wires remains challenging due to geopolitical uncertainty and competitive pressure. Therefore, the group expects revenues and margins at similar levels of 2025 on a like-for-like basis.
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