Release Date: May 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nabaltec AG (XTER:NTG, Financial) reported a slight increase in first-quarter revenues to EUR54.7 million, marking a 1.2% rise compared to the previous year.
- The Functional Fillers segment experienced a 4.1% revenue increase, driven by strong demand for fine precipitated hydroxides in the Wire & Cable market and significant growth in viscosity-optimized hydroxides for battery applications.
- The company maintained a strong export ratio of 76.6%, reflecting its global market presence.
- Nabaltec AG (XTER:NTG) achieved a positive net debt position, with cash and cash equivalents exceeding liabilities to banks by EUR2.2 million.
- The company is actively investing in capacity expansion for boehmite and visco-optimized hydroxide products, with capital expenditures of EUR4.6 million in the Functional Fillers segment.
Negative Points
- The operating result EBIT decreased by 18% to EUR4.1 million, with the EBIT margin dropping to 7.5% from 9.3% in the previous year.
- Higher energy costs, particularly for gas and electricity, negatively impacted the EBIT in the first quarter of 2025.
- The Specialty Aluminas segment recorded a revenue decline of 6.1% and a negative EBIT margin of 2.5%, attributed to declining sales prices and higher energy costs.
- The boehmite product area suffered a 42% decline in revenues, with volumes 38% lower than the previous year, leading to a loss-making position.
- The company faces strong competition and low market prices in the USA, particularly affecting the Naprotec subsidiary.
Q & A Highlights
Q: Did boehmite as a product incur losses in the first quarter?
A: Yes, boehmite experienced a slight negative EBIT due to very low volumes in Q1 2025. The average sales prices remain good, but the volume was 38% lower than in Q1 2024. (Gunther Spitzer, CFO)
Q: Are there any signs that the boehmite volume decline might change throughout the year?
A: It's difficult to predict as the situation is unclear. The market is highly dependent on the Chinese market, where we face strong competition and overcapacity. (Johannes Heckmann, CEO)
Q: Can you provide details on the price increases being implemented across the group?
A: Price increases are mainly on the Functional Fillers side, not on Specialty Aluminas. The increases are in the lower single-digit percentage range. (Johannes Heckmann, CEO)
Q: How is the demand development in the US for Functional Fillers?
A: Demand in the US is solid, with good development at Nashtec and Naprotec. However, pricing at Naprotec is not satisfactory, and we are monitoring the situation closely. (Johannes Heckmann, CEO)
Q: Have you started with the price increase in Q2, and how has demand reacted?
A: The price increase began in April and is ongoing. It's too early to see the full impact on demand, and the order backlog hasn't shown a clear impact yet. (Johannes Heckmann, CEO)
Q: How have energy prices evolved since the contracts ended last year?
A: Energy prices have decreased from the spike in Q1. We have hedged 50% of our gas needs, while electricity is still purchased on the spot market. Current prices are not comparable to pre-2019 levels. (Johannes Heckmann, CEO)
Q: Will the current global economic uncertainty impact your CapEx plans?
A: No, the ongoing projects are already in progress and will continue. After completion, we will return to normal maintenance CapEx levels. (Johannes Heckmann, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
