Recticel Conference call feedback & model update
Recticel has posted solid double digit top line growth in 1H25 with a flattish adj EBITDA margin. The € 27.7m adj EBITDA figure was c. 8% below our forecast and 7% below consensus. The fresh FY25 adjusted EBITDA guidance calls for c. 10% growth which was below our and consensus forecasts (of c. +24%). Positive is that building permit levels are starting to pick up in some geographies. The strategic growth projects in the US (Insulated Panels Plant) and Belgium (Recycling plant) are progressing according to plan. While we still believe in the strategic attractiveness of the insulation market and Recticel's offering, we deem short term valuation multiples are about fair so we maintain our Hold rating and € 11 target price.Recticel is engaged in the production of a variety of polyurethane foams that are used in the furniture, technical, automotive, bedding and insulation industries. The Flexible Foam Business Line covers the manufacture, conversion and marketing of flexible polyurethane foam. The types of flexible foams are classified as Comfort, Technical Foams and Composite Foams. Co. is also engaged in the manufacture of foams used in mattresses and slat bases. In addition, Co. manufactures rigid polyurethane and phenolic foams for thermal insulation. Co.'s automotive activities include: manufacturing moulded seat cushions, window encapsulation and manufacturing interior trim components.
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