Umicore shares fall 6% on weak revenue, cash flow despite H1 earnings beat

Investing.com -- Umicore (EBR:UMI) shares fell by 6% on Friday after the Belgian-French materials technology group posted weaker-than-expected revenue and sharply lower operating cash flow for the first half of 2025, offsetting a modest earnings beat and reiterated full-year guidance.

Revenue excluding precious metals fell 1% year over year to €1.79 billion, below Jefferies’ €1.91 billion estimate and the €1.85 billion consensus. 

Operating cash flow dropped to €62 million from €453 million in the prior-year period. Net debt stood at €1.83 billion, or 2.28 times adjusted EBITDA.

The company reaffirmed its full-year adjusted EBITDA guidance of €790 million to €840 million, unchanged from a pre-released range.

Adjusted EBITDA rose to €433 million for the period, ahead of Jefferies’ forecast of €423 million and the €421 million consensus, according to company data and analyst estimates compiled by Jefferies.

Adjusted EBIT increased to €302 million from €241 million a year earlier. The group EBITDA margin improved to 24.2% from 21.8%, and the EBIT margin rose to 17% from 13.3%.

In Catalysis, adjusted EBITDA was €232 million, flat versus consensus and ahead of Jefferies’ €224 million forecast. 

Segment revenue held steady at €872 million, supported by stable autocatalyst volumes and gains in light-duty applications.

Battery Materials recorded a loss of €21 million in adjusted EBITDA, compared with a €22 million loss expected by Jefferies and a €9 million loss in the consensus. 

Umicore cited lower cathode volumes and weaker refining income. Full-year segment EBITDA is expected to remain negative at €20 million to €25 million, compared with a €5 million loss in 2024.

Specialty Materials reported adjusted EBITDA of €59 million, exceeding estimates of €51 million from both Jefferies and the consensus, driven by higher cobalt prices. 

Revenue in the segment was stable at €271 million. Full-year EBITDA is projected to rise modestly from €97 million in 2024.

Recycling generated adjusted EBITDA of €190 million, missing Jefferies’ forecast of €206 million but slightly beating the €183 million consensus. 

Revenue was flat at €460 million. Umicore cited an unfavorable precious metals refining mix and expects full-year EBITDA to match the €326 million posted in 2024.

The Other and Corporate segment posted an adjusted EBITDA loss of €27 million, narrower than Jefferies’ projection of €45 million and the consensus figure of €38 million. 

The company expects corporate costs to decline 20% year over year, implying approximately €70 million in 2025.