Befesa Q3 revenue up on higher zinc prices and improved secondary aluminium margins

By Reuters News


Overview

  • Hazardous waste recycler's Q3 2026 revenue rose 7% yr/yr

  • Q3 2026 adjusted EBITDA grew 10% yr/yr


Outlook

  • Befesa narrows FY 2026 adj EBITDA guidance to €260m–€270m, excluding Critical Minerals US grant

  • Critical Minerals US grant expected to lift FY 2026 adj EBITDA to €286m–€296m

  • Company expects Q4 earnings momentum from higher volumes and aluminium recovery, partly offset by inflation


Result Drivers

  • ZINC PRICES & ALUMINIUM RECOVERY - Higher zinc prices and improved secondary aluminium margins drove Q3 results, offsetting lower volumes and cost pressures


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

EUR 311.6 mln

EUR 309 mln (2 Analysts)

Q3 EPS

EUR 0.58

Q3 Net Income

EUR 23 mln

Q3 Adjusted EBITDA

Beat

EUR 67.80 mln

EUR 63 mln (1 Analyst)

Q3 Operating Cash Flow

EUR 57.3 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the environmental services & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Befesa SA is €44.00, about 32.3% above its October 27 closing price of €33.25

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago


Reuters Recommended Reads

  • Oct 28 - Finland's Luotea Q3 adjusted EBITA rises on cost savings

  • Oct 27 - Waste Management Q3 revenue slightly beats on higher volumes

  • Oct 28 - Clean Harbors Q3 revenue rises 21%, beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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