Latest news with #AKZOF
Yahoo
23-07-2025
- Business
- Yahoo
Norsk Hydro ASA (NHYDY) Q2 2025 Earnings Call Highlights: Strong Financial Performance Amid ...
Adjusted EBITDA: NOK7.8 billion for Q2 2025. Free Cash Flow: NOK5 billion in Q2 2025. Adjusted RoaCE: 12%, above the target of 10% over the cycle. Revenue: Increased by 4% year over year to NOK53 billion for Q2 2025. Net Income: Positive net income of around NOK2.5 billion for Q2 2025. Adjusted Net Income: NOK3.6 billion in Q2 2025. Adjusted EPS: NOK1.68 per share for Q2 2025. Net Debt: Increased by NOK400 million since Q1 2025, ending at NOK23 billion. Capital Expenditure Guidance: Reduced by NOK1.5 billion for 2025. Impairment Charges: NOK400 million in Brazilian energy assets. Extrusion Sales Volumes: Increased by 1% year over year in Q2 2025. Aluminum Prices: Three-month aluminum price increased from USD2,507 to USD2,598 per ton during Q2 2025. US Midwest Premium: Increased from USD844 to USD1,432 per ton during Q2 2025. Energy Adjusted EBITDA: Increased to NOK1.1 billion in Q2 2025 from NOK611 million in Q2 2024. Warning! GuruFocus has detected 10 Warning Signs with AKZOF. Release Date: July 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Norsk Hydro ASA (NHYDY) reported a strong adjusted EBITDA of NOK7.8 billion for Q2 2025, with a free cash flow of NOK5 billion and an adjusted RoaCE of 12%, surpassing the target of 10%. The company has successfully maintained a low number of injuries, demonstrating a strong safety culture that contributes to operational stability and efficiency. Norsk Hydro ASA (NHYDY) is ahead of its 2030 improvement program targets, with significant progress in greener sales, including a 50% increase in sales of greener products compared to 2024. The company has implemented a hiring freeze for white-collar positions to enhance flexibility and resilience in response to market volatility. Norsk Hydro ASA (NHYDY) continues to see strong demand for low carbon and recycled products, supported by regulatory momentum for sustainability and climate action in Europe. Negative Points Geopolitical risks and trade tensions, particularly following Russia's invasion of Ukraine, are affecting Norsk Hydro ASA (NHYDY)'s entire value chain and global market conditions. The company has faced challenges in the wind and solar markets, particularly in Brazil and the Nordics, due to grid constraints and regulatory uncertainty. Norsk Hydro ASA (NHYDY) reported NOK400 million in impairments in its Brazilian energy assets due to adjusted return requirements amid ongoing challenges. The extrusion market in North America is expected to decline by 2% in 2025 compared to 2024, driven by weak demand in the commercial transport and automotive segments. Norsk Hydro ASA (NHYDY) has terminated a Nordic power purchase agreement due to undelivered volumes, resulting in potential compensations of up to EUR90 million. Q & A Highlights Q: On the CapEx, can you elaborate on which projects, expansion plans you have cut or delayed in 2025? And also, can we assume a similar cut to 2026 if downstream demand remains weak? A: Eivind Kallevik, President and CEO: Most of the CapEx reductions are focused on the recycling and extrusion businesses. The 2026 guidance remains at NOK15 billion, and we will review this as the market develops, providing an update at the Investor Day later this year. Q: Is the more than 100 FTE reduction within extrusion predominantly blue collar? And is the potential of 300 to 350 a mix of white and blue collar? A: Eivind Kallevik, President and CEO: The automation project in extrusions is predominantly focused on the blue-collar workforce and does not overlap with the white-collar review currently underway. Q: Can you give a guidance on your expectations for eliminations in EBITDA into Q3? A: Trond Christophersen, CFO: We don't have specific guidance for eliminations next quarter, but we expect a significant portion of the remaining NOK400 million to NOK500 million to be realized in Q3. Q: You have said IRR of more than 10% needed to deliver projects. Does [Turija and Karmy] deliver in the current environment? A: Eivind Kallevik, President and CEO: Yes, both the Spanish recycler and the wire rod investments at Karmy are solid projects, supported by long-term agreements with leading cable producers in Europe. Q: What has changed on your return requirements that drove the impairment in Brazil? A: Eivind Kallevik, President and CEO: We updated the return requirements for energy investments due to grid constraints and potential regulatory challenges in Brazil, leading to a NOK400 million impairment. Q: In alumina, prices are declining for Q3, and you are guiding for higher bauxite costs. Do you expect to avoid a loss-making quarter at the current price cost spread? A: Trond Christophersen, CFO: The realized alumina prices for Q3 are not expected to differ significantly from Q2, and the bauxite price increase is temporary due to maintenance at Paragominas. Q: Your revenue from green products has increased by 50% year over year. Can you give us some more color on how volumes and premiums have developed? A: Eivind Kallevik, President and CEO: We see growth in both volume and premiums for green products, with positive developments in the US market following the European trend. Q: Are you seeing an impact on scrap availability in Europe from higher US tariffs? A: Eivind Kallevik, President and CEO: The scrap market in Europe remains tight due to exports to Southeast Asia and the US, along with low economic activity in Europe, leading to elevated scrap prices. For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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Yahoo
31-01-2025
- Business
- Yahoo
Akzo Nobel NV (AKZOF) (Q4 2024) Earnings Call Highlights: Strategic Growth Amidst Market Challenges
Q4 Adjusted EBITDA: EUR321 million, a 3% increase. Q4 Organic Sales Growth: 1% increase driven by price/mix. Full-Year Organic Sales Growth: 2% increase with a 1% volume rise. Full-Year Adjusted EBITDA: EUR1.5 billion, with a margin of 14.1%. Net Debt-to-EBITDA Ratio: 3 times, with an adjusted ratio of 2.6 times. Adjusted Gross Margin Expansion: 130 basis points increase. Q4 Revenue Growth: 4% increase, supported by favorable foreign exchange rates. Q4 Adjusted EBITDA Margin: 12.3%. Operating Working Capital: 15.7% of revenue, higher due to lower accounts payables. Q4 Free Cash Flow: EUR284 million. Return on Investment: Improved to 13.3% in 2024. Proposed Final Dividend: EUR1.54. 2025 Adjusted EBITDA Target: More than EUR1.55 billion. SG&A Efficiency Targets: Over EUR150 million in annualized gross savings. Industrial Transformation Benefits: EUR300 million expected by 2027. Warning! GuruFocus has detected 5 Warning Signs with AKZOF. Release Date: January 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Akzo Nobel NV (AKZOF) increased adjusted EBITDA by 3% in Q4 2024, reaching EUR 321 million, aligning with consensus expectations. The company achieved full-year organic sales growth of 2%, supported by a 1% increase in volumes, and expanded its adjusted gross margin by 130 basis points. Efficiency measures are on track, with an expected total benefit of EUR 300 million by 2027, including EUR 200 million in cost savings and EUR 100 million in efficiency gains. Marine and Protective Coatings delivered double-digit volume growth, driven by technical newbuilds in marine, with expectations for mid-single-digit growth in 2025. The company is making strategic investments to enhance and modernize its anchor sites globally, contributing to operational efficiency and debottlenecking critical assets. Net debt-to-EBITDA ratio increased to 3 times, higher than the target, due to lower payables and accelerated restructuring activities. Q4 organic volume growth was flat, impacted by declines in Deco China, with expectations for continued softness in some segments in Q1 2025. The automotive and specialty volumes were slightly lower in Q4, with weak demand in automotive and vehicle refinishes. The company does not anticipate a significant market rebound in 2025, with flat to low single-digit growth expected. Restructuring costs will remain elevated through 2025, impacting cash flow and leverage ratios in the first half of the year. Q: Can you provide insights into your pricing strategy and cost inflation expectations for 2025? A: Maarten de Vries, CFO, explained that they anticipate a low single-digit inflation in raw materials and freight. They plan to offset this with price increases during Q1 and Q2. The net benefit from cost savings is expected to be EUR70 million, considering EUR170 million in gross savings and EUR100 million in inflation costs. Q: Could you update us on the strategic review of your Southeast Asian operations, particularly in India? A: Greg Poux-Guillaume, CEO, stated that they are exploring options to strengthen their business in India, which could range from a joint venture to a full disposal. The powder business is being carved out to facilitate discussions, as it is a key asset with differentiated technology. Q: What is your outlook on cash generation and deleveraging, given the Q4 cash flow performance? A: Maarten de Vries noted that 2025 will see significant cash outflows due to restructuring costs, impacting leverage. They aim to reduce working capital to around 14.5% and expect to improve cash flow generation as restructuring progresses. Q: How are you addressing the challenges in the Chinese Deco market, and what is your long-term commitment to China? A: Greg Poux-Guillaume highlighted that they have adapted costs effectively in China and see signs of market stabilization. They remain committed to China, viewing it as a strategic market, especially as it becomes more consolidated. Q: Can you elaborate on the performance and future prospects of the Marine and Protective Coatings business? A: Greg Poux-Guillaume mentioned that the Marine and Protective Coatings business has improved profitability significantly, aiming to reach high single-digit to low teens in 2025. They continue to focus on operational leverage and market position recovery. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
