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Introduction & Market Context
Agfa-Gevaert NV (EURONEXT:AGFB) presented its Q3 2025 financial results on November 13, 2025, revealing significant challenges across most business divisions. The company's stock dropped 7.74% following the announcement, trading at €0.77 compared to the previous close of €0.84, reflecting investor concerns about the company's performance and outlook.
The presentation highlighted a 7.1% decrease in revenue and a substantial 65.9% decline in adjusted EBITDA compared to the same period last year. Despite these challenges, the company reported a positive free cash flow of €21 million and outlined accelerated restructuring plans to address declining performance in mature markets.
Quarterly Performance Highlights
Agfa-Gevaert's Q3 2025 results showed significant pressure on both revenue and profitability. Overall sales decreased by 7.1% to €257 million, while adjusted EBITDA fell by 65.9% to €5 million, representing just 2.0% of sales.
As shown in the following chart breaking down performance by division:
The performance varied significantly across divisions. Digital Print & Chemicals (DPC) was the only division showing revenue growth, with a 5.1% increase to €115 million. Meanwhile, HealthCare IT revenue declined by 13.0% to €50 million, and Radiology Solutions saw the steepest drop of 19.4% to €74 million.
The company's strategic segmentation between growth and mature businesses reveals the stark contrast in performance:
While growth businesses generated €7 million in adjusted EBITDA, mature businesses posted a negative €1 million, highlighting the ongoing challenges in traditional markets, particularly in medical film.
Detailed Financial Analysis
The decline in adjusted EBITDA can be attributed to several factors, as illustrated in this bridge analysis:
The most significant negative impacts came from Radiology Solutions, which contributed a €7 million decline, and HealthCare IT with a €4 million reduction. Despite these challenges, the company maintained positive free cash flow of €21 million, benefiting from working capital improvements and non-recurring items.
The free cash flow breakdown shows how the company managed to achieve positive results despite operational challenges:
Working capital improvements contributed €16 million, while adjustments and non-recurring items added €28 million, offsetting the weak operational performance. However, the company's total debt increased slightly to €492 million in Q3 2025 from €484 million in Q3 2023, with €119 million drawn from its €180 million revolving credit facility.
Strategic Initiatives
Agfa-Gevaert is accelerating its restructuring efforts to address the declining performance in mature businesses. The company announced an extension of its current €50 million cost reduction program with an additional €25 million initiative, focusing on optimizing the cost base of traditional film activities.
In HealthCare IT, the company is rapidly transitioning to a cloud-based SaaS business model, which is creating short-term revenue pressure but is expected to deliver more stable, recurring revenue streams in the long term. The following chart illustrates this transition:
This strategic shift is already showing some positive indicators, with cloud deals representing 39% of total deals and 70% of new customers opting for cloud solutions. Recurring revenue now accounts for 69% of HealthCare IT's total Q3 revenue and grew by 0.6% year-over-year.
In the Digital Print & Chemicals division, the company reported mixed results. While overall revenue grew by 5.1%, equipment sales in North America have slowed significantly. The Green Hydrogen Solutions segment showed 8% growth, primarily driven by increasing momentum in Asia, with the ZIRFON product established as the standard for hydrogen membranes.
The company's strategic focus remains on its growth engines, as illustrated here:
Forward-Looking Statements
Looking ahead, Agfa-Gevaert expects continued challenges in the near term. The company anticipates that HealthCare IT profitability will be slightly below previous levels as the cloud transition progresses. Digital Print & Chemicals is expected to show slight growth, while Radiology Solutions will continue to face pressure from declining medical film markets, particularly in China.
CEO Pascal Juéry emphasized that the company is "not staying idle in view of the current situation" and highlighted that the cloud transition in HealthCare IT represents a strategic positioning rather than a fundamental market issue, stating, "Nothing is broken in this market. On the contrary, we are well positioned to grab these SaaS contracts, but it has a short-term impact."
In addition to the restructuring initiatives, the company is exploring the potential redevelopment of its Mortsel, Belgium site, which could provide additional financial flexibility in the future.
The company's overall outlook remains cautious, with performance expected to be slightly below last year's levels as it navigates market uncertainties and continues its strategic transformation toward growth businesses while managing the decline of mature segments.
Full presentation:
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