Earnings release
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1 SIBELCO 2025 HALF YEAR RESULTS, 29 AUGUST 2025 RESULTS RELEASE 29 August 2025 Sibelco delivers 7% revenue growth despite challenges Sibelco today reported H1 revenue growth (+7%) thanks to a strong performance by its European activities and the first contribution of Strategic Materials Inc. (US glass recycling), which was purchased in June 2024. These contributions could nevertheless only partially absorb the subdued performance of the High Purity Quartz (HPQ) business, which is still recovering from Hurricane Helene and was also impacted by the ongoing tariff negotiations between the US and China. The HPQ revenue and corresponding profitability shortfall, magnified by a weaker US dollar, affected EBITDA (-16%). The lower EBITDA and an increase in working capital impacted cash flow significantly. Highlights • Sibelco’s health and safety performance was tragically overshadowed by a fatal incident at our Commerce, California (USA) glass recycling facility in March. We remain resolutely committed to the safety of all employees • Revenue was EUR 1,153 million, up 7.0% against last year, as we delivered a strong performance in Europe, APAC and South America • EBITDA fell 15.9% to EUR 233 million as sales of HPQ decreased, magnified by the unfavourable US dollar evolution • FOCF underperformed due to the lower EBITDA and a deterioration in working capital • First contribution from Strategic Materials Inc. (US glass recycling), which was purchased in June 2024 • In April we launched the Build 2030 strategy, which sets out a clear path for sustainable growth based on a more evenly balanced contribution of our three core businesses in industrial silica, HPQ and recycled glass 2025 HALF YEAR RESULTS
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2 SIBELCO 2025 HALF YEAR RESULTS, 29 AUGUST 2025 RESULTS RELEASE 29 August 2025 Commenting on the results, Sibelco CEO Hilmar Rode said: “Despite complex global trade dynamics and constantly shifting tariff policies, Sibelco delivered revenue growth over the first half of 2025 thanks to positive performances in Europe and the first contribution of Strategic Materials Inc. EBITDA was lower due to the subdued performance of our high purity quartz business, which is still recovering from Hurricane Helene and was also impacted by a disruption in exports of high purity quartz from the US to China. The global tariff situation remains unsolved with most of the economic impact yet to come. Given this challenging context we are taking proactive steps to improve cash flow and reduce leverage.”
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3 SIBELCO 2025 HALF YEAR RESULTS, 29 AUGUST 2025 RESULTS RELEASE 29 August 2025 Group results Revenues were up by 7.0% to EUR 1,153 million. This was driven by strong sales in Europe, APAC, and South America and the contribution of Strategic Materials Inc., acquired in June 24. EBITDA fell by 15.9% to EUR 233 million, primarily as a result of the reduced sales of high purity quartz from Spruce Pine. Cost and price management Sibelco maintained stable pricing where market circumstances allowed for it. Variable and fixed production cost reduction remain a point of attention. Capital expenditures and acquisitions Total capital expenditure including IFRS16 leases was € 92 million in H1 2025 compared to € 110 million last year. The main investments are related to the completion of the high purity quartz expansion in the US operation and in bringing the Glass Recycling North America (GR NAM) business to the Sibelco safety and efficiency standards. Cash flow and funding Sibelco’s free operating cash flow during the first half of the year was negative at EUR -171 million, underperforming compared to previous years. The partial unwinding of the high purity quartz prepayments, the one-off effect of an asset disposal closed in 2025 but paid in 2024, the cash impact of organisational optimisation and a deterioration of the trade working capital are the main explanations. Clear actions to improve working capital have been put in place. Glass & Electronics Sales of high purity quartz (HPQ) from our Spruce Pine (USA) operation to customers in Asia’s solar PV and semiconductor sectors were impacted by the ongoing US-China tariff negotiations. Import tariffs for HPQ exports to China disrupted HPQ sales to China during Q2. Whilst conditions have subsequently relaxed somewhat, the global tariff situation has not yet been solved. Market conditions in the PV industry remained very difficult. Demand in Europe’s flat glass market was broadly in line with forecast as the construction industry began to show promising signs of recovery. Sales in the UK were slightly higher than anticipated. Sales to Europe’s container glass industry were also aligned with expectations, as demand for glass packaging held steady across the food and beverage sectors. Most of our customers have completed the de- stocking phase of 2023 – 2024 and returned to steady, demand-aligned production levels. Conditions in our fiberglass markets improved against last year, with sales in line with forecast. BUSINESS REVIEW FINANCIAL ITEMS
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4 SIBELCO 2025 HALF YEAR RESULTS, 29 AUGUST 2025 RESULTS RELEASE 29 August 2025 Construction Sales of ball clays from our Devon (UK) operations to the global sanitaryware industry performed well with an increase in demand from existing and new customers. Sales of materials to the tile sector were strong, despite the continued absence of ball clays from our Ukrainian operations and the complete suspension of production at our Mertsalovo site towards the end of H1 as a result of the rising threats from the ongoing war. With the European construction industry expected to show moderate growth this year, sales of materials for concrete and cement held steady. We also saw an upturn in demand in the engineered stone sector, fuelled largely by an increase in renovation projects. Recycling Our glass recycling business in Europe performed well, helped by ongoing operational improvements. June marked the one-year anniversary of Sibelco’s acquisition of Strategic Materials, Inc. and its subsequent integration as our Glass Recycling North America (GR NAM) business. The successful integration has expanded Sibelco’s footprint in North America and confirmed the group as a key global player in glass recycling, now processing around 5 million tonnes of cullet across two continents. A comprehensive multi-year asset improvement plan for our US activities has been designed and is now being implemented. Industrial & Consumer Ongoing growth in the flame retardants sector drove strong sales of aluminium trihydrate (ATH), ensuring Sibelco maintained our position as the market leader in non-precipitated grades. Improving conditions in the construction sector in Europe saw a steady performance in sales of materials for the polymer and coatings markets. The coatings market in South America saw a slow start as market consolidation continued to reduce demand. Sales of materials in the sports & leisure sector performed well in most countries, whilst we maintained a strong position in South America’s oral care market. Metallurgy Sales of olivine to the steelmaking industry were flat across Asia, Europe and North America. This was in line with a slight fall in global steelmaking against H1 2024, and the industry’s ongoing switch from traditional blast furnaces, which utilise olivine for smelting, to alternative manufacturing processes. Conditions in the foundry and refractory sectors were also challenging, leaving sales in line with forecast in Europe. Sales to the foundry industry in South America were hampered by low demand in the automotive sector, and by customers facing export restrictions as a result of US tariffs. OUTLOOK The global tariff situation has not yet been solved, with most of the economic impact yet to come. Sibelco therefore expects the challenging conditions of H1 2025 to continue. Within this context: • Europe and the other non-HPQ activities of the group were largely unaffected by the evolving tariff situation and have performed well in the first half of the year. Provided economic activity continues at a reasonable level we anticipate this resilient performance to continue into the second half. • Sibelco’s HPQ business is still recovering from Hurricane Helene and is facing adverse market conditions in the PV industry. HPQ is also exposed to the still undetermined outcome of the ongoing tariff negotiations between the US and China. Hence the outlook for HPQ is more uncertain. OUTLOOK
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5 SIBELCO 2025 HALF YEAR RESULTS, 29 AUGUST 2025 RESULTS RELEASE 29 August 2025 Simplified and Unaudited Consolidated Income Statement of Profit or Loss IN THOUSANDS OF EUR H1 2024 H1 2025 Revenue 1,077,603 1,152,660 Cost of sales (667,764) (775,200) Gross Profit (-) 409,838 377,460 Other Operating Income 9,473 16,105 SG&A expenses (-) (138,656) (153,204) Other Operating Expenses (20,490) (10,403) Depreciation, amortization and depletion (61,681) (82,801) EBIT 198,484 147,157 Financial income 7,058 1,688 Financial expenses (-) (19,728) (38,171) Share of profit of equity-accounted investees 4,152 4,328 Profit (loss) before Income Taxes 189,966 115,003 Income taxes (43,076) (37,869) Profit (loss) for the period 146,889 77, 133 Attributable to: Share of the group in the net result 145,945 78,055 Non-controlling interests 945 (922) 146,889 77,133
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6 SIBELCO 2025 HALF YEAR RESULTS, 29 AUGUST 2025 RESULTS RELEASE 29 August 2025 Simplified and Unaudited Consolidated Statement of Financial Position IN THOUSANDS OF EUR 30 Jun 2024 30 Jun 2025 Assets 2,818,264 2,944,416 Non-current assets 1,901,803 1,952,075 Current assets 916,461 992,341 Equity and liabilities 2,818,264 2,944,416 Total equity 833,515 808,125 Shareholders' equity 795,408 732,984 Share capital 25,000 25,000 Share Premium 12 12 Retained earnings and reserves 770,396 707,972 Non-controlling interests 38,107 75,141 Non-current liabilities 1,238,701 1,497,500 Current liabilities 746,047 638,791
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7 SIBELCO 2025 HALF YEAR RESULTS, 29 AUGUST 2025 RESULTS RELEASE 29 August 2025 Simplified and Unaudited Consolidated Statement of Cash Flows IN THOUSANDS OF EUR H1 2024 H1 2025 EBIT 198,484 147,157 Non-recurring result and management fees 16,752 2,901 D epreciation, amortization and depletion 61,681 82,801 EBITDA 276,916 232,859 Income taxes (paid)/received (56,374) (44,321) CAPEX, including IFRS 16 leases (110,878) (92,340) Working capital changes (105,671) (263,257) Use of provisions (18,994) (1,332) Provisions and allowances recognised in IS (+) 16,501 12,045 Cash contributions to defined benefits plans (4,019) (1,492) Other non-cash items (5,211) (13,497) Free operating cash flow (7,731) (171,335) Interest (paid) / received (12,302) (9,761) Proceeds from sale of assets 496 1,184 Land & Reserves acquisitions (21,899) (20,717) (Acquisition) / disposal of subsidiaries and JV's (370,304) 30,425 Disposals of subsidiaries/non-controlling interests 74 0 Dividends received 2,661 (19) Dividends paid to shareholders (51,397) (48,531) Other (11,189) (2,069) Free cash flow (471,665) (220,824) Own shares (609,575) - Net (increase) / decrease in net debt (1,081,240) (220,824) Opening net financial position 380,995 (642,802) Change in net financial debt (1,081,240) (220,824) Leases (3,839) 1,607 Exchange rate fluctuations and other 16,524 4,635 CLOSING NET FINANCIAL POSITION AS 30 JUNE (687,560) (857,384)