BEWI Q1 2025 presentation: Revenue and EBITDA growth across all segments

Introduction & Market Context

BEWI ASA (OB:BEWI) presented its first quarter 2025 results on May 14, highlighting modest revenue growth alongside stronger EBITDA performance. The Nordic-based provider of packaging, components, and insulation solutions reported continued recovery in the building and construction industry, which has positively impacted its performance across all business segments.

The company’s stock closed at 22.50 NOK on May 13, down 0.66% ahead of the earnings release, and has traded between 19.40 NOK and 33.75 NOK over the past 52 weeks.

Quarterly Performance Highlights

BEWI reported revenue of EUR 188 million for Q1 2025, representing a 2% increase compared to the same period last year. More impressively, adjusted EBITDA rose 13% to EUR 15 million, indicating improved operational efficiency. When including discontinued operations, the company’s adjusted EBITDA reached EUR 18 million.

As shown in the following chart detailing key financial figures for the quarter:

Despite the positive revenue and EBITDA growth, BEWI still recorded an operating loss (EBIT) of EUR 2.9 million and a net loss of EUR 12.4 million for continuing operations. The total operations net loss stood at EUR 10.3 million, compared to EUR 8.5 million in Q1 2024.

The financial overview demonstrates organic growth across all segments, with particularly strong performance in the Insulation & Construction division:

Segment Performance

Upstream Segments

BEWI’s Circular segment showed significant progress, with increased collection of used EPS (expanded polystyrene) reaching approximately 8.7 kilotons in Q1. The company also reported a substantial increase in sales of recycled GPPS (general purpose polystyrene).

The financial performance of the upstream segments is illustrated in the following chart:

Downstream Segments

The Insulation & Construction segment was a standout performer, achieving more than 5% volume growth as markets continued their positive recovery momentum. This segment’s adjusted EBITDA margin reached 7.7% in Q1 2025.

Meanwhile, the Packaging (NYSE:PKG) & Components division reported increased volumes for fish boxes, automotive components, and HVAC components. This segment maintained a strong adjusted EBITDA margin of 12.2% in Q1 2025.

The following chart details the financial performance of these downstream segments:

Financial Position and Outlook

BEWI’s consolidated income statement provides a comprehensive view of the company’s financial performance:

The company reported net debt excluding IFRS 16 of EUR 298 million, with available cash and credit of approximately EUR 63 million. BEWI expects cash and working capital release from transactions of around EUR 75 million, which should strengthen its financial position.

Capital expenditure totaled EUR 9.4 million in Q1 2025, with EUR 4.8 million specifically related to customer projects within the Automotive business.

Strategic Initiatives

BEWI is pursuing several strategic initiatives to position itself for long-term growth. The company is merging its RAW business with Unipol (BIT:UNPI), with a cost savings program on track. It’s also merging its traded food packaging business with STOK, with closing expected in Q2 2025.

The company continues to strengthen its automotive business, with a strategic review ongoing. BEWI is also focused on increasing the collection and use of recycled materials, targeting 30% average recycled content in its products.

Looking ahead, BEWI expects to benefit from entering seasonally stronger quarters for insulation. The standing biomass of salmon indicates growth potential in fish box volumes. Management believes the company is well-positioned for growth in recovering markets, citing strong market fundamentals, streamlined operations, room for production ramp-up, a strengthening financial position, and a growing M&A pipeline.

Despite the current net loss position, BEWI’s volume growth across segments and strategic positioning suggest potential for improved performance as the company moves into traditionally stronger seasonal quarters and continues to execute on its strategic initiatives.

Full presentation:

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