Release Date: May 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Derichebourg SA (FRA:PNU) reported a solid set of results, outperforming the first half of last year despite a complex macroeconomic and geopolitical environment.

• The company demonstrated strong cash discipline and optimized its industrial footprint, contributing to improved financial performance.

• EBITDA increased by 20 million, a 14% improvement from the previous year, with an EBITDA ratio rising to 9.5% from 8.2%.

• The company has a strong position in industrial non-ferrous metals, essential for the global energy transition, and is investing in new technologies.

• Derichebourg SA (FRA:PNU) maintains a robust financial structure, providing flexibility to seize external growth opportunities.

Negative Points

• Revenue decreased by 1.7% due to low demand in Europe and Turkey, and significant imports of Chinese semi-products.

• The economic environment remains challenging, with low levels in important sectors such as automotive, housing, and steel manufacturing.

• Scrap volumes decreased by 5.5%, reflecting low demand and market challenges.

• The public sector service revenue decreased by 7.8%, partly due to the end of a contract in Marseille.

• The company faces ongoing challenges from tariff measures and trade wars, impacting customer caution and commodity prices.

Q & A Highlights

• Warning! GuruFocus has detected 10 Warning Signs with FRA:PNU.

Q: Can you provide more details on the financial performance for the first half of 2025? A: Abdelrahman El Aofir, CEO, stated that despite a complex macroeconomic and geopolitical environment, Derichebourg SA delivered solid results. The group reported a revenue of 1.7 billion, nearly the same as last year, with an EBITDA of 162 million, a 14% increase from the previous year. The EBITDA margin improved to 9.5% from 8.2% last year. Net income attributable to shareholders more than doubled to 63.2 million.

Q: What were the main drivers behind the improved EBITDA and gross margin? A: Pierre Cananduli, CFO, explained that the improvement was primarily due to better gross margins in recycling and savings in electricity costs. The absence of a cyber attack, which affected operations last year, also contributed to the improved performance.

Q: How is the recycling division performing, and what are the future expectations? A: The recycling division saw a revenue decrease of 1.7%, but EBITDA increased by 21 million compared to last year. The division is benefiting from better margins despite lower scrap volumes. The company expects further improvements with new operational lines and strategic partnerships, such as the agreement with LG Electric Solutions for electric car battery recycling.