Morgan Stanley has revised its price target for Acerinox (ANIOY, Financial), adjusting it from EUR 13.40 to EUR 13.20. Despite the slight reduction, the financial firm continues to assign an Overweight rating to ANIOY shares, indicating confidence in the company's potential performance. This adjustment comes as investors navigate ongoing market fluctuations, emphasizing the importance of companies with strong fundamentals.
ANIOY Key Business Developments
Release Date: May 08, 2025
- EBITDA: EUR102 million for Q1 2025, demonstrating resilience in a challenging business climate.
- Cash Flow: EUR99 million generated in Q1 2025, with a 29% increase in production.
- Net Debt: EUR1.2 billion, with a slight increase of EUR75 million due to strong cash flow and a dividend payment of EUR77 million.
- Production Increase: 29% overall, with an 80% increase in Europe.
- Working Capital: Reduced by EUR6 million despite increased production.
- CapEx: EUR57 million, reflecting an expansion phase.
- Free Cash Flow: EUR42 million for the quarter.
- Dividend Payment: EUR0.31 per share in January, with the next payment in July.
- Order Book: Solid order book in both stainless steel and high-performance alloys (HPA).
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Acerinox SA (ANIOY, Financial) reported a strong EBITDA of EUR 102 million in a challenging business climate, demonstrating resilience.
- The company generated EUR 99 million in cash flow during the quarter, despite a 29% increase in production.
- Acerinox SA (ANIOY) successfully reduced working capital by EUR 6 million, showcasing effective management.
- The company has a solid order book, particularly in the United States, indicating strong future performance.
- Acerinox SA (ANIOY) is focusing on geographical diversification, producing on three continents, which mitigates exposure to regional recessions.
Negative Points
- Profits were below Q1 2024 levels, partly due to market corrections and tariff-related uncertainties.
- The European market remains weak with low prices and no signs of demand reactivation.
- Net debt increased by EUR 75 million, influenced by dividend payments, CapEx, and currency conversion effects.
- The chemical process industries are experiencing delays in capital investments due to market uncertainties.
- The company faces ongoing challenges from imports gaining market share in the United States.
