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Investing.com -- IMCD N.V. (AS:IMCD) on Thursday reported third-quarter EBITA of €118.7 million, falling 11% year-over-year and landing 4% below consensus expectations of €123.1 million.
The specialty chemicals distributor maintained stable organic revenues during the quarter, performing better than the consensus expectation of a 1.8% decline. However, negative foreign exchange impacts of 5% and a 93 basis point reduction in gross margin to 24.3% weighed on results.
The company’s EBITA margin contracted by 126 basis points to 9.9%, compared to the 10.4% analysts had anticipated. The lower gross margin was attributed to changes in product mix.
IMCD’s stable organic revenue in the third quarter follows 0.7% growth in the second quarter. Performance was affected by ongoing tariff impact uncertainty and tougher comparative figures, as the company had seen 5.5% growth in the third quarter of 2024 after flat revenues in the second quarter of 2024.
Free cash flow showed significant improvement, increasing 42% to €111 million after a 22% decrease in the first half of 2025. This recovery was driven by lower working capital investment. The company’s leverage ratio stands at 2.6x EBITDA, up from 2.2x in December 2024.
Industry peer Azelis reported more challenging results for the same period, with EBITA declining 15% to €98.2 million, 3% below consensus. Azelis saw a 4.1% organic revenue decline and a 126 basis point reduction in EBITA margin to 9.7%.
IMCD shares have declined 38% year-to-date, while Azelis shares have fallen 47%, compared to a 13% gain in the EuroStoxx index. IMCD currently trades at 11.2x FY26E EV/EBITA, representing a 30% premium to Azelis.
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