Results overview
Befesa reported first-quarter results with adjusted EBITDA of €58 million, a 4% increase from the prior year, and revenue of €285 million. The company recorded a margin of 20.3% for the quarter despite an 8% year-over-year decline in sales and headwinds from foreign exchange movements.
How the metrics stack up versus expectations
The reported adjusted EBITDA of €58 million fell 4% short of consensus estimates of €61 million. Earnings per share rose to €0.52, up 11% from €0.47 in the prior-year quarter.
Segment performance
Steel dust volumes increased 1% year-over-year to 280 kilotons despite scheduled maintenance shutdowns. The steel dust business generated €182 million in revenue, down 9% from the prior year, while adjusted EBITDA for the segment increased 3% to €51 million. The segment margin expanded to 27.7% from 24.6% in the prior-year period.
Salt slag delivered revenue of €30 million, up 8% year-over-year, with adjusted EBITDA of €8 million, a 10% increase. Secondary aluminium revenue declined 10% to €85 million, while adjusted EBITDA for that segment rose 13% to €2 million.
Cash flow and leverage
Operating cash flow rose 12% to €38 million. Free cash flow was €12 million, down from €16 million in the prior year. Net leverage stood at 2.25x at the end of the quarter, down from 2.78x in the first quarter of 2025 and slightly below 2.27x at the end of 2025.
Guidance for 2026
For 2026 Befesa provided adjusted EBITDA guidance of between €250 million and €270 million. The midpoint of that range, €260 million, is 2% below the consensus estimate of €264 million. Management is targeting earnings per share above €2.20 for 2026, compared with a consensus EPS of €2.56. Capital expenditure is expected to be approximately €70 million, and the company aims for net leverage around 2.0x.
Pricing and treatment charges
Treatment charges were settled at $85 per ton for the period, up from $80 per ton in the prior year.
Conclusion
Befesa delivered a quarter marked by improved profitability metrics and higher per-ton treatment charges even as overall sales declined and currency movements weighed on results. Segment margins, particularly in steel dust, expanded while the company set 2026 targets that sit modestly below current consensus figures for adjusted EBITDA and earnings per share.