Quarterly snapshot
Alzchem Group AG reported first-quarter results that beat analyst expectations on profitability measures but fell slightly short on revenue. The company recorded sales of €148.7 million for the quarter, an increase of 2.7% from the prior year, but below the internal consensus of €149.8 million.
Profit and margin details
Profitability improved across key metrics. EBITDA rose 18% to €32.3 million, outpacing the €30.5 million consensus. EBIT increased 23% to €25.6 million, versus an expected €23.1 million. Net income per share also climbed, with earnings per share of €1.77 reflecting a 23% increase and beating the €1.65 consensus figure.
Underlying drivers
Management attributed sales growth to a 5.6% lift in prices, which was partly offset by a 0.6% decline in volumes and a 2.2% negative impact from foreign exchange movements. A divergence across business units was evident.
The Specialty Chemicals segment delivered notable strength: volumes were up 6.4% and prices rose 8.4%, supported by continued demand for creatine and nitroguanidine. By contrast, the Basic and Intermediates segment experienced a 13.7% drop in volumes, which the company linked to a weak European steel industry and to price pressure across agricultural and pharmaceutical markets.
Cash flow and balance sheet
Free cash flow fell to €1.1 million in the quarter, down sharply from €36.4 million in the first quarter of 2025. The decline reflected increased investments and higher working capital requirements. Net cash at quarter-end stood at €29.8 million, slightly below the €30.6 million reported at the end of 2024.
Outlook and capital projects
Alzchem confirmed its full-year 2026 guidance, forecasting sales of around €600 million, which would represent roughly a 7% increase from 2025, and EBITDA of around €126 million, near an 8% rise. The company also reiterated its expectation to be well positioned for further growth in the low double-digit percentage range from 2027 onward.
Capacity expansions for nitroguanidine and creatine are proceeding as planned, with commissioning expected in the second half of 2026 and the second half of 2027, respectively.
Bottom line
Alzchem delivered stronger-than-anticipated profitability in the quarter despite a modest sales shortfall driven by sector-specific weakness in European steel and price pressure in certain end markets. The firm’s near-term outlook was unchanged, while capital investments and working capital dynamics resulted in a much lower free cash flow compared with the year-earlier period.