Azelis reports third quarter results with Americas impairment

Azelis S.A. reported third quarter EBITA of €114 million, matching analyst expectations of €113.4 million. The figure represents a 15% recovery from the previous year.

The company’s organic revenue growth accelerated to 8.2% during the quarter, supported by easier year-over-year comparisons. The gross profit margin remained stable at 23.4%, while the EBITA margin increased by 54 basis points to 10.2%, reflecting cost discipline measures.

Free cash flow fell 52% to €67 million due to higher working capital requirements. Net debt stood at €1,640 million, resulting in a leverage ratio of 3.5 times EBITDA, above the company’s target of less than 3 times.

Azelis recorded a non-cash goodwill impairment charge of €350 million related to acquisitions completed in the Americas between 2021 and 2023. The impairment reflects lower valuations for these transactions. Goodwill in EMEA and APAC regions remains unaffected.

The company maintained its full-year guidance for positive organic EBITA growth, noting varying volume growth across end-markets and continued high volatility. Analyst consensus projects 6% EBITA growth to €435 million for the full year.

Azelis stated it does not expect to complete any acquisitions this year due to high asking prices and elevated leverage levels.