Q3 2026 Aurubis AG Earnings Call Transcript
Key Points
- Operating EBT increased 31% year-over-year to EUR374 million in the first nine months, with Q3 EBT up 23% sequentially to EUR149 million.
- Strong earnings contributions from sulfuric acid, recycling activities, and copper products more than offset the decline in concentrate TC/RCs.
- The Complex Recycling Hamburg (CRH) plant was officially commissioned and is exceeding internal ramp-up targets, with the targeted feed mix already achieved.
- The tankhouse expansion in Pirdop is on track to commence operations in autumn 2026, which will increase cathode production and contribute to gross margin.
- Management expects operating EBT to come in at the upper end of the guidance range (EUR425-525 million) for fiscal year 2025-26, and confirms the mid-term EBITDA improvement target of EUR260 million.
- The company maintains a strong balance sheet with a debt coverage ratio of 1.0, well below the target of 3.0, despite significant investment activity.
- Aurubis Richmond's ramp-up is taking longer than expected due to technical challenges, leading to a one-year shift in its mid-term earnings profile and a lower EBITDA contribution than originally targeted.
- Concentrate markets remain very challenging, with spot TC/RCs declining further and expected to stay under pressure, potentially impacting future contract negotiations.
- Net cash flow was significantly negative at minus EUR28 million for the nine months, impacted by a temporary inventory buildup related to strategic projects.
- Free cash flow before dividends was minus EUR365 million, significantly below the prior year, though management expects a reversal by fiscal year-end.
- The equity ratio declined to 49% from 56% due to increased balance sheet total, and operating ROCE in the CSP segment fell to 15.5% from 17.6%.
- The company had to adjust its raw material feed mix at Richmond, leading to less favorable commercial terms and lower revenues than initially planned.
Good afternoon, ladies and gentlemen, and welcome to the analyst call. The conference will be recorded. At this time, all participants have been placed on a listen-only mode. (Operator Instructions) Let me now turn the floor over to Elke Brinkmann, Head of Investor Relations.
Good afternoon, and welcome to our Q3 2025-'26 conference call. We will walk you through the results for the first nine months of our fiscal year. With us on the call are our CEO, Toralf Haag; and CFO, Steffen Hoffmann. After the presentation, we will be happy to take your questions. (Event Instructions) Before we start, let me draw your attention to our disclaimer.
We will make forward-looking statements today. These are based on current plans and expectations and are subject to risks and uncertainties. Actual results may differ materially. That being said, let me now turn the floor over to Toralf Haag.
Thank you, Elke, and good
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