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Trading update for the nine months to September 2024

Taking actions to address weaker end market conditions; share buyback restarted

Bekaert has delivered a sales performance of € 3 016 million in the first nine months of 2024 (-10% against the same period in 2023). Sales were impacted by lower volumes (-4%) and the reversal of raw material cost inflation and energy surcharges in previous periods (-5%).

Bekaert remains very focused on extracting further cost efficiencies, maintaining margins and generating cash while managing increasingly weak end markets in the third quarter. The period has further demonstrated the benefits from the strategic improvements in recent years and the business resilience they have brought to the group. Whilst there are clear headwinds, the group continues to execute its strategy.

Financial highlights

• Consolidated sales of € 3 016 million in the first nine months of 2024 (-10%) driven by pricing reflecting lower raw material costs and lower volumes

  • Lower input costs, including raw material and energy charges, lead to lower pricing reducing sales by approximately € 150 million (-5%)

  • The lower volumes (-4%) reduced sales by approximately € 140 million

  • Currency had an impact of around € -30 million (-1%)

• Ongoing and proactive cost management to support margins in 2024 and beyond

• Continued good cash flow generation, driven by operational efficiencies and capex discipline, and low financial leverage

Operational and strategic highlights

• Rubber Reinforcement - weak Q3 especially in China and Europe, with demand particularly impacted in truck tires

• Steel Wire Solutions - continuing the strong performance of H1, despite lower volumes and some delays in the energy and utility markets of North America

• BBRG - further impact in Q3 from the operational issues in steel ropes in Europe and North America, however resolution of operational issues remains on track

• Specialty Businesses:

  • Sustainable Construction (Dramix®) delivered +3% volume growth over the first nine months, despite some project delays, with a robust project pipeline and good progress developing sales offerings in new markets

  • Hydrogen activities (Currento®) continue to develop in line with revised expectations with good customer traction

  • Mixed performance across other sub-segments with weak demand in combustion technologies and ultra fine wires

• Bekaert has qualified for up to €24 million of funding from the EU Innovation Fund to support green hydrogen manufacturing in Europe

• Successful integration of the BEXCO acquisition into BBRG delivering expected synergies, with trading ahead of initial forecast