Bekaert Feedback conference call
Below are the key highlights from the conference call. 1H24 uEBIT dropped by 9% and was roughly in line with our and consensus forecasts. Bekaert slightly lowered its FY24 sales guidance which was already incorporated in our and consensus forecasts while expressing confidence in the current uEBIT consensus (391m, which is roughly in line with KBCS' € 394m forecast). We remind that Bekaert's management strives to grow faster in specialties where Bekaert has the technological expertise to make a difference. In the coming years, we expect further earnings support from portfolio pruning and a gradually improving mix whereby more profitable segments such as Specialty Products and BBRG grow above the company average. With a net debt/EBITDA of about 0.7x, Bekaert has a very solid balance sheet. Whilst the company is currently reserving some firepower for (mostly bolt on) M&A, we would not exclude that a sizeable portion of the cash flow generation will eventually be directed towards the shareholders in the form of new share buyback programs and dividend increases. Valuation is still compelling and we reiterate our BUY rating.Bekaert is a global technological and market company engaged in advanced solutions based in steel wire transformation and coatings as well as an independent manufacturer of drawn steel wire products. In addition, Co. teams up with customers and suppliers globally to develop, implement, upgrade, and protect both current and future technologies. Co.'s business activities are put in practice along two main axes: Product Innovation and Process Innovation. Product Innovation helps Co. better serve its customers, while Process innovation enables Co. to increase operational effectiveness, minimizing its impact on the environment.
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