Slides
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Bekaer t FY 202 5 Results 26 February 202 6
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Safe h arbor This presentation may contain forward - looking statements. Such statements reflect the current views of management regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such forward - looking statements. Bekaert is providing the information in this presentation as of its date and does not undertake any obligation to update any forward - looking statements contained in it, in light of new information, future events or otherwise. Bekaert disclaims any liability for statements made or published by third parties and does not undertake any obligation to correct inaccurate data, information, conclusions or opinions published by third parties in relation to this or any other publication issued by Bekaert. 2
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3 Agenda Seppo Parvi CFO Yves Kerstens CEO Introduction and highlights Financial review S trategy and operational review Seppo Parvi , CFO Yves Kerstens, CEO Yves Kerstens, CEO 1 2 3 Outlook and summary 4 Yves Kerstens, CEO
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Introduction and highlights Yves Kerstens, CEO 4
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1 All comparisons are relative to 202 4 2 Like - for - like sales growth excluding the impacts of currency translation, acquisitions, disposals and discontinued operations 3 EBITu, Free Cash Flow and Leverage ( Net debt on EBITDAu) are Alternative Performance Measures (APMs). Definitions and reconciliations are provided at the end of this presentation 202 5 Highlights 1 Resilient results and strong cash flow supported by cost management and restructuring 5 Proactive actions to sustain profitability • €40m reduction in overheads and €39m in operational efficiency • €162m one - off charges (limited € 8m cash impact ) t o adjust footprint in line with demand • L ower future cost base from these a ctions • Increased exposure to higher margin markets through SWS Latin America disposals Market volatility amid trade tensions • Mitigated direct impact of tariffs • Stable volumes in RR, volume growth in energy & utilities • Project delays in steel ropes and construction • Adjusted hydrogen footprint to align with weaker growth outlook Strong cash flow supporting shareholder returns • 8% EBITu margin level sustained • Very s trong Free Cash Flow 3 generation ( € 314 m ), l ow leverage 3 at 0. 4 x • Proposed d ividend of €1.9 5 per share (+3% vs last year) • O ngoing €200m share buyback ( > €1 00 m completed) Sales - 2 % 2 € 3 . 7 bn EBITu 3 margin - 80 bp 1 8.0% Free Cash Flow 4 +63 % 1 € 314m Leverage 5 - 0.1x 1 0. 4 x
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Financial and operational review Seppo Parvi, C F O 6
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- 42 - 29 16 - 15 Q4 - 24 FX M&A Q4 - 24 like - for - like Volume Price - mix, RM Q4 - 25 7 Q 4 2025 sales bridge Stable l ike - for - like sales with volume growth in core markets 8 73 in millions of € 9 42 8 71 1 SWS Latam disposal Stable like - for - like sales performance + 2 % volume growth • G rowth in energy and utilities sector in Steel Wire Solutions • Volume growth in China for Rubber Reinforcement • Weaker demand in steel ropes in Europe and North America • Weaker demand in hydrogen end market 1 M&A i mpact reflects the disposal of SWS businesses in Costa Rica, Ecuador and Venezuela that was finalized on 30 June 2025.
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- 102 - 55 10 - 105 FY - 24 FX M&A FY - 24 like - for - like Volume Price - mix, RM FY - 25 8 FY 2025 sales bridge Like - for - like sales decline driven by pass - through of lower raw material costs and mix on stable volumes 1 M&A includes acquisition of BEXCO , discontinued production SWS Indonesia and India and disposal of SWS businesses in L a tin America. 2 Volume excludes discontinued production in SWS Indonesia and India . Acquisitions: − BEXCO: €16m 3,958 3,801 3,706 1 2 - 2 % in millions of € SWS divestments & closures: − SWS Latam disposal: € - 59 m − Indonesia & India: € - 12m
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-4 -13 -18 -79 39 40 -17 FY-24 Disposals FX FY-24 like-for-like Volume Price-mix Conversion cash cost Overheads Other FY-25 9 EBITu bridge Margins supported by cost reduction and footprint optimization in millions of € 1 Other i nclude s other operational result, depreciation and write - downs 20 24 EBITu margin 8 . 8 % 20 25 EBITu margin 8. 0 % 1 Operational cost savings and better plant utilization in RR in China Unfavorable mix: − RR: more sales in China at lower prices − Sustainable Construction: less US sales − Lower contribution from energy transition end markets Lower volumes in : − Sustainable Construction in the US − Steel ropes − Hydrogen and filtration end markets 348 297 Cost initiatives led to structural decline in overhead costs 332
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1 All comparisons are relative to 2024 2 Like - for - like sales growth excluding the impacts of currency translation, acquisitions, disposals and discontinued operations. Rubber reinforcement 1 Stable margin in challenging environment 10 Stable full - year volumes, growth in H2 2025 • Strong growth in China offset lower truck tire demand , mainly in Europe • Reported sales ( - 5.2%) impacted by currency ( - 2.8%) and raw materials/ price - mix ( - 2.7%) • +2% volume growth in H2 2025 vs H2 2024 , with higher volumes in China and North America Sustained profitability • 8.6% EBITu margin, in line with last year despite weaker truck tire markets a nd strong competition • €148m FY 2025 sales from joint venture in Brazil Sales - 2 % 2 € 1 . 6 bn EBITu 3 margin - 1 0bp 1 8. 6 % ROCEu - 20bp 1 14.1% Sales Brazil JVs € 148m Further cost and footprint improvements • Sustained efficiency improvements across cost base offset price - mix impacts • High plant utilization in Chin a Announced agreement in 2026 to acquire two tire cord plants from Bridgestone • Strengthening our leadership in premium tires
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Steel Wire Solutions 1 Strong volume growth driven by energy & utilities demand 11 Strong volume growth driven by energy & utilities • Like - for - like volume growth (+3.1%), with double - digit volume growth in North America • Positive mix more than offset lower raw material costs (+0.9%) • Reported sales ( - 4.7%) driven mainly by disposals in Latin America ( - 6.6%) and currency ( - 2.1%) Continued s trong p rofitability and cash flow • F ootprint , portfolio and mix actions have structurally improved the business • 9.7% EBITu margin despite temporary pass - through delays of raw material costs in North America and an unfavorable mix in Europe • €654m FY 2025 sales from joint venture in Brazil Sales +4 % 2 € 1 . 0 bn EBITu 3 margin - 7 0bp 1 9 . 7 % ROCEu - 70bp 1 27 .5% Sales Brazil JVs € 654m Further cost and portfolio improvements • Continued discipline across cost base • 30% of sales now coming from energy & utilities after Latin American disposals 1 All comparisons are relative to 2024 2 Like - for - like sales growth excluding the impacts of currency translation, acquisitions, disposals and discontinued operations
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1 All comparisons are relative to 2024 2 Like - for - like sales growth excluding the impacts of currency translation, acquisitions, disposals and discontinued operations. Bridon - Bekaert Ropes Group 1 Steel ropes impacted by tariff uncertainty; synthetics business secured two of its largest - ever contracts 12 Lower volumes linked to project delays amid tariff uncertainty • Lower volumes ( - 2.7%), primarily in steel ropes in Europe and North America • Impact from lower raw material costs and mix ( - 4.0%) • Reported sales ( - 6.2%) , impacted by acquisitions (+2.9%) and currency ( - 2.4%) Sales - 7 % 2 € 518m EBITu 3 margin - 3 0bp 1 8 . 7 % ROCEu - 90bp 1 8.3% Synthetics ropes: strong order book for deep water mooring • BEXCO and F l intstone secured major contracts for offshore mooring projects Steel ropes: impacted by project delays • Demand in North America impacted by tariff uncertainty • Lower mining demand in Europe Advanced Cords: subdued construction environment • Slightly lower volumes from weaker elevator hoisting demand in China and Europe • P artly offset by stronger timing belt and automotive business Sustained Profitability • 8.7% EBITu margin despite lower volumes • Cost and footprint actions supported profitability
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1 All comparisons are relative to 2024 2 Like - for - like sales growth excluding the impacts of currency translation, acquisitions, disposals and discontinued operations. Specialty Businesses 1 Slower growth prompted adjustments across the business 13 Sustainable Construction • P roject delays in North America in H1 2025 linked to tariff uncertainty, with recover y in H2 • Competition in Europe and Australia weighed on volumes and prices • Strong growth in the Middle East and India Lower demand and price pressure impacting profitability • Weak demand and unfavorable geographic mix in Sustainable Construction in H1 2025 • Lower demand in hydrogen, ultra fine wire , filtration and fiber end markets • 8.4% EBITu margin Sales - 10 % 2 € 550m EBITu 3 margin - 540 bp 1 8 . 4 % ROCEu - 1030bp 1 12 .9% Other segments • Adjusted footprint and cost base to align with demand outlook • Lower sales in ultra fine wires following a technology shift in solar applications • Stable revenues in Hose and Conveyor Belt and Combustion Technologies
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809 675 1,022 1,220 1,019 914 802 2019 2020 2021 2022 2023 2024 2025 14 JV performance Another period of strong cash dividends for the group Sales from JVs ( €m) Share of net results from JVs ( €m) 29 34 108 54 47 49 38 2019 2020 2021 2022 2023 2024 2025 Dividends received from JVs ( €m) Lower sales primarily driven by currency effects and to a lesser extent by volumes • Cost efficiencies have mostly offset impact of lower volumes • Margins broadly stable Significant contribution to group results • Share of results €38m • Cash dividend of €48m 19 25 25 68 60 51 48 2019 2020 2021 2022 2023 2024 2025
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15 Restructuring and impairment charges €162m one - off charges (limited €8m cash impact) contributing to lower future cost base 1 € - 37m one - off impact from SWS disposal which is the result of a € + 20m gain on disposal and a € - 57m impact from n on - cash Cumulative Translation Adjustment s (CTA) linked to historic currency devaluations in Venezuela Steel Wire Solutions €50m: • €37m 1 from Latin America disposal • €13m impairments and restructuring costs mainly in Belgium Rubber Reinforcement €40m: • Restructuring in China and Europe • Rightsizing costs Specialty Businesses Bridon - Bekaert Ropes Group € 14 m: • Consolidation of synthetic ropes in to Belgium €61m: • €55m hydrogen impairments and consolidation of activities Lower future cost base from these actions S trong focus to continuously improve our resilience
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16 Consolidated income statement – key figures In €m 2024 2025 Sales 3,958 3,706 Cost of sales - 3,274 - 3,114 Underlying Gross profit 684 592 Selling and Administrative expenses - 300 - 256 R&D expenses - 53 - 49 Other operating revenues / expenses 18 9 Underlying EBIT 348 297 One - off items - 52 - 162 Reported EBIT 296 135 Interest income / expense - 20 - 21 Other financial income and expenses - 19 - 28 Result before taxes 258 86 Income taxes - 63 - 59 Effective tax rate 2 4 % 69 % Result after taxes 195 26 Share in the results of joint ventures 49 38 Result for the period 244 65 Result attributable to equity holders 239 67 Underlying result to equity holders 291 229 Basic EPS u ( € per share ) 5.55 4.52 Weighted average number of shares (basic, in millions of shares) 52.4 50.7 €162m one - offs (limited €8m cash impact) €40m reduction in overheads Normalized effective tax rate for 2025 is 24% 1 € 39m operational efficiency improvements 1 When adjusting for one - off charges where tax impacts are expected to be immaterial, the normalized effective tax rate calculatio n is approximately 24%
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641 653 524 16.5% 17.3% 15.0% 2023 2024 2025 Operating working capital (OWC) OWC/sales % • Working capital decrease ( € - 12 9 m vs 2024 ) mainly linked to organic improvements, FX translation effect and disposals • Achieved target of 15% working capital of sales 17 Working capital management and cash flow generation Continued focus on working capital to improve cash flows In millions of € , working capital as % of sales 1 1 Working capital divided by the current quarter sales multiplied by 4 2 Free Cash F l ow is defined in the Alternative Performance Measures as Cash flows from operating activities – capex – net interest + dividends received Cash Flows from Operating Activities ( €m) Free Cash Flow 2 ( €m) • Very strong cash generation: • Free Cash Flow of €314m, +63% vs 2024 • Minimal cash impact from one - offs ( €8m) • Net debt reduced ( €180m vs €283m in FY 2024) • Net debt to EBITDAu of 0.4x (vs 0.5 in FY 2024) • CAPEX expected to increase to around €170 m in 2026 vs €1 39m in 2025 Target : c 15 % 1 440 374 450 267 193 314 2023 2024 2025
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1.50 1.65 1.80 1.90 1.95 2021 2022 2023 2024 2025 18 Commitment to significant shareholder returns + 3 0% D ividend per share ( €) 18 Total returns to shareholders per year ( € m ) Share buyback (annualized) Dividend Progressive dividend policy ✓ Proposed dividend of €1.9 5 per share for FY2025 supported by strong cash flow ✓ Over the long term aiming for 40% payout ratio Share buyback program ✓ €200m share buyback ongoing ( > €100m completed) ✓ R epurchased shares will be cancelled 206 209 197 94 86 89 94 97 96 120 120 100 100 2022 2023 2024 2025 2026 19 6
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Strategic and operational review Yves Kerstens, CEO 19
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Strategic execution in 2025 20 Ongoing transformation − R eposition SWS into higher margin markets, exit commoditized businesses − Footprint optimization across the business − Accelerating move to market - driven, more autonomous and agile business units − Continued exploring M&A opportunities in our key end markets Cost focus − € 40 m reduction in overhead costs in 2025 − €39m operational efficiency improvements in 2025 − Adjusted footprint and cost base in line with weaker growth outlook in hydrogen Cash flow focus − Continued focus on working capital improvements: − € 129m reduction year - on - year − C ontinued strict capital expenditure discipline − €314m FCF, +63% vs 2024
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21 Key end - markets: Tire Reinforcement Market perspectives ✓ Continued subdued markets in Europe and North America ✓ Robust market in China especially in tires for EVs (incl . trucks and buses) Tire Reinforcement €7bn 1 1 Estimated addressable market by 2030 RR acquired two of Bridgestone’s tire cord plants Reinforce our partnership with Bridgestone Invest in profitable growth for RR Consolidate our leading market position Defend strategic assets and approvals
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22 Key end - markets: Transmission & Performance Wires Market perspectives ✓ Growing power and data transmission markets driven by funding commitments & end user demand ✓ Significant investment in the US linked to grid modernization and growing data transmission requirements Transmission & Performance Wires € 3 bn 1 1 Estimated addressable market by 2030 SWS sales by segment % 2019: 12 % 2025: 30% Energy & Utilities Reduced exposure to commoditized segments Increased exposure to energy & utilities SWS has been transformed after Latin America disposals
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Advanced Lifting and Mooring €5bn 1 23 Key end - markets: Advanced Lifting and Mooring Market perspectives ✓ Weak dema nd in steel ropes in North America , linked to tariffs , and in Europe due to lower mining activity ✓ Strong order books for synthetic ropes linked to deep water mooring 1 Estimated addressable market by 2030 Synthetics ropes business secured two of its largest - ever contracts BEXCO synthetic ropes for mooring Coral North Project Flintstone mooring connector & tensioner system Tiber - Guadalupe project
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Sustainable Construction €3bn 1 24 Key end - markets: Sustainable Construction Market perspectives ✓ Normalized demand in North America flooring in H2 2025 after significant p roject delays linked to tariff uncertainty in H1 ✓ Intense competition in Europe and Australia ✓ Growth in Middle East and India expected to continue ✓ G rowth through new applications 1 Estimated addressable market by 2030 Dubai Metro Blue Line SD Worx HQ in Belgium
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Energy Transition € 2 bn 1 Key end - markets: Energy Transition Market perspectives ✓ Delay in implementation of Hydrogen regulation in Europe and US h ave prompted adjustments to align footprint and cost base to demand outlook ✓ Weak demand across most other subsegments Long - term potential of hydrogen business remains ✓ Temporarily paused hydrogen production in Belgium, maintaining flexibility to restart operations as market develops ✓ Continued advancing product qualification with key electrolyzer OEMs ✓ Fulfilling customer commitments from remaining site in the meantime 1 Estimated addressable market by 2030
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Average EBITu margin (%) 26 Resilient margins in challenging environment + 27 0bps Higher margin s sustained despite end market challenges • Footprint rationalization • Decreased exposure to lower growth , cyclical and commoditized markets • Growth in en e rgy and utility applications improving product portfolio mix Adjustments made in 2025 across the business • Cost savings in production entities and overheads • B usiness restructuring in line with demand outlook • Lower future cost base from these actions with improved operational leverage of the group going forward 5.9% 8.6% 8.6% 2017-2019 2020-2022 2023-2025 Leaner cost base has improved operational leverage Pre-COVID COVID Post-COVID
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Summary and outlook Yves Kerstens, CEO 27
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Summary and outlook Resilient results and strong cash flow supported by cost management and restructuring 28 202 6 outlook C ontinued geopolitical risk and trade uncertainty • Continued recovery in Sustainable C onstruction • Growth in e nergy and utilit ies end markets • Challenging environment in core markets Sales and margins for 2026 expected at similar levels of 2025 on a like - for - like basis Structural actions improved operational leverage • €40m reduction in overheads and €39m in operational efficiency • €162m one - offs ( €8m cash impact) to adjust footprint in line with demand • Lower future cost base from these actions • Increased exposure to higher margin markets via Latin America disposals Market volatility amid trade tensions • Mitigated direct impact of tariffs • Stable volumes in RR, volume growth in energy & utilities • Project delays in steel ropes and construction • Adjusted hydrogen footprint to align with weaker growth outlook Strong cash flow supporting shareholder returns • 8% EBITu margin level sustained • Very strong Free Cash Flow generation ( €314m), low leverage at 0.4x • Proposed dividend of €1.95 per share (+3% vs last year) • Ongoing €200m share buyback (>€100m completed)
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Q&A 29
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Appendix 30
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31 Strategy delivery Building a balanced business by end - market and by region 44% 27% 15% 14% Consolidated sales by business unit BBRG RR SWS SpB Consolidated sales by region Consolidated sales by end - market 42% 31% 21% 6% 48% 13% 14% 25% Other 1 Mobility Energy & Utilities Construction & infrastructure APAC EMEA NAM LATAM 1 Other includes agriculture, equipment, consumer goods and basic materials
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32 Alternative Performance Measures (APMs) Metric Definition Capital employed (CE) Working capital + net intangible assets + net goodwill + net property, plant and equipment + net RoU Property, plant and equi pme nt. The average CE is computed as CE at balance sheet date plus CE same period of the previous year divided by two. Capital ratio (financial autonomy) Equity relative to total assets. Current ratio Current assets to Current liabilities. EBIT Operating result (earnings before interest and taxation). EBIT – underlying (EBITu) EBIT before operating income and expenses that are related to restructuring programs, impairment losses, business combination s, business disposals, environmental provisions or other events and transactions that have a material one - off effect that is not inherent to the business. EBITDA Operating result (EBIT) + depreciation, amortization and impairment of assets + negative goodwill. EBITDA – underlying (EBITDAu) EBITDA before operating income and expenses that are related to restructuring programs, impairment losses, business combinati ons , business disposals, environmental provisions or other events and transactions that have a material one - off effect that is not inherent to the business. EBIT interest coverage Operating result (EBIT) divided by net interest expense. Free Cash Flow (FCF) Cash flows from Operating activities - capex + dividends received - net interest paid. Gearing Net debt relative to equity. Margin on sales EBIT, EBIT - underlying, EBITDA and EBITDA - underlying on sales. Net capitalization Net debt + equity. Net debt Interest - bearing debt net of current loans, non - current financial receivables and cash guarantees, short - term deposits, cash and cash equivalents. Net debt on EBITDA Net debt divided by EBITDA , whereby EBITDA is based on last twelve months (LTM) result. Operating free cash flow Cash flows from Operating activities – capex (net of disposals of fixed assets). Return on capital employed (ROCE) Last twelve months operating result (EBIT) relative to the average capital employed. Return on equity (ROE) Last twelve months result relative to average equity. The average equity is computed as equity at balance sheet date plus equ ity same period of the previous year divided by two. Underlying EPS ( EBITu + interest income - interest expense +/ - other financial income and expense - income tax + share in the result of JVs and associates - result attributable to non - controlling interests) divided by the weighted average nr of ordinary shares (excluding treasury shares ) . WACC Cost of debt and cost of equity weighted with a target gearing of 50% (net debt/equity structure) after tax. Working c apital Inventories + trade receivables + bills of exchange received + advanced paid - trade payables - advances received - remuneration and social security payables - employment - related taxes. Working capital on sales The working capital divided by the current quarter sales multiplied by 4 Internal Bekaert Management Reporting Focusing on the operational performance of the industrial companies of the Group, leaving out financial companies and other n on - industrial companies, in a flash approach and as such not including all consolidation entries reflected in the full hard - close consolidation on which the annual report is based.
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33 APM reconciliation table
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34 APM reconciliation table