profine : It’s time for the expansion strategy to pay off

profine has suffered over the past 3 years from the weakness in the construction segment despite being in the resilient (albeit discretionary) renovation segment. Volumes have continued to fall, although stabilization has started to be seen throughout 2025. On a positive note, the German group has been able to maintain its selling prices notwithstanding the decrease in PVC prices notably in Europe. This has allowed profine to maintain healthy EBITDA margins despite the continued inflation, notably on wages. FCF generation, however, has been negative in the last 2 years, impacted by its expansion strategy and high interest expenses. We anticipate a reversal of this trend as EBITDA should benefit from the inorganic actions taken by the company, while capex should be reduced on a y/y basis. We foresee a stable liquidity position throughout 2026, while we do not expect RCF drawings to reach 35% of commitments.