Last close As at 05/08/2026
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Research: Industrials
Nabaltec’s FY25 results reflected a difficult year for the German chemical industry, with revenue down 3.2% y-o-y to €197.0m, broadly in line with the 3.8% revenue decline reported for the German chemical sector. EBITDA declined 21.7% to €26.8m and EBIT fell 31.8% to €15.2m, although the EBIT margin of 7.7% remained within management’s 7–9% guidance range. Revenue was slightly below Nabaltec’s revised guidance for a decline of up to 2%, following a weak Q4 and soft December. For FY26, management guides to revenue growth of 4–6%, but for a lower EBIT margin of 5–7% (5.2% in preliminary Q126 results), mainly due to higher material costs and increased D&A from recent investments. The start to FY26 was described as stable, supporting management’s view that December’s weakness was mainly inventory and price-related rather than a further structural deterioration. Our forecasts and valuation are under review.
| Year end | Revenue (€m) | EBIT (€m) | EPS (€) | DPS (€) | P/E (x) |
|---|---|---|---|---|---|
| 12/23 | 200.1 | 18.3 | 1.30 | 0.28 | 8.2 |
| 12/24 | 203.6 | 22.3 | 1.62 | 0.29 | 6.6 |
| 12/25 | 197.0 | 15.2 | 1.10 | 0.29 | 9.7 |
Functional Fillers revenue declined 2.7% to €144.1m, with EBIT down to €15.0m, from €21.5m. Boehmites remained the weakest area, with revenue down 37.1% to €7.9m and development still dependent on the pace of European battery cell production. By contrast, viscosity optimised hydrates grew 2.9% to €16.8m and should remain an important growth driver in FY26, supported by demand for thermal management in batteries from major chemical companies and industrial adhesive manufacturers. Fine hydroxides are also expected to return to growth, supported by fire protection, cable, data centre and electrification applications. Specialty Aluminas revenue fell 4.7% to €53.0m and EBIT was c €0.2m, reflecting weak refractory demand and pressure in steel-linked end-markets. Management noted signs of bottoming during FY25 and expects a slight recovery in FY26, mainly from reactive aluminium oxides. In the US, Nashtec is expected to remain stable, while Naprotec should continue to improve.
Cash generation weakened, with operating cash flow falling to €15.8m from €35.2m and investing cash flow of €24.8m, producing negative free cash flow of €9.0m. Nabaltec’s funding position remains stable, with year-end net debt of €18.5m (cash: €72.3m, bank debt: €90.8m). Capex remained focused on Functional Fillers, particularly fine hydroxides and viscosity optimised hydrates, while the commissioning and capitalisation of €38.4m of projects in FY25, alongside further assets due to come on stream in 2026, is expected to drive a sharp increase in D&A and is a key reason for the lower FY26 EBIT margin guidance.
Management’s FY26 outlook remains cautious. Demand is expected to stay largely stable but at a low level, with short-term ordering and volatility likely to persist. The VCI expects German chemical production to decline by 1.0% in 2026 and industry revenue to fall by c 2.0%, reflecting high production costs, energy prices, regulation, Chinese overcapacity, US tariffs and geo-economic uncertainty. Over the longer term, Nabaltec continues to point to structural growth drivers in halogen-free flame retardants, electrification, e-mobility, energy storage, data centres and technical ceramics. The key question for FY26 is how quickly these drivers can offset cyclical weakness, price pressure and slow European battery cell capacity development.
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Research: Industrials
Fevara reported solid H126 results, indicating continued progress against its three strategic pillars of improving operating margins, delivering profitable commercial growth and expanding into new growth markets. The entry into Brazil is strategically important in this context. The acquisitions of Macal and Cia do Sal provide Fevara with an initial operating, distribution and future manufacturing platform in the world’s largest beef cattle market, creating a credible route for low moisture block (LMB) roll-out and an additional leg of medium-term growth. Against this backdrop, management set out medium-term ambitions of at least £120m in revenue, £15m in EBITDA, a 10% EBIT margin and 20% return on capital employed (ROCE).