Q2 2026 Bewi ASA Earnings Call Transcript
Key Points
- Bewi ASA (STU:5T0) delivered a strong second quarter with group sales up 19% and adjusted EBITDA up 57% to over EUR34 million, lifting the EBITDA margin from 10.4% to 13.8%.
- The Insulation & Construction segment saw a significant margin uplift, with EBITDA up 69% and margin improving from 8.9% to 12.6%, driven by higher volumes and better capacity utilization.
- The Circular segment turned from a negative contributor to positive EBITDA of EUR2.5 million, with margin improving from -1.9% to 11.5%, supported by high virgin material prices and operational efficiency.
- Strong cash flow generation with free cash flow of approximately EUR37 million in the quarter, driven by operational performance and working capital release, leading to a cash conversion of almost 50% over the last 12 months.
- Leverage (excluding IFRS 16) improved significantly from 7.5x in Q2 '25 to 2.7x, nearing the target of below 2.5x, providing increased financial flexibility and potential for shareholder distributions.
- The building and construction market remains cautious, with activity only gradually improving, which could limit the pace of volume growth in the Insulation & Construction segment.
- The strong Q2 performance was partly supported by favorable market conditions, including inventory purchased at favorable prices (contributing only around EUR2 million) and high virgin material prices in Circular, which may not be sustainable.
- Q3 is historically a weaker quarter for Bewi ASA (STU:5T0), and the company expects a slight dip in performance compared to Q2.
- The company's midterm target of EUR1 billion in net sales and 15% EBITDA margin depends on market normalization and continued volume growth, which may take longer than expected given current market conditions.
- Net financial items remained negative at EUR9.3 million, and while improved, the company still carries significant debt, with leverage at 2.7x, above the target of below 2.5x.
Good morning, and welcome to the presentation of Bewi's results for the second quarter and first half of 2026. My name is Charlotte Knudsen. I am responsible for Investor Relations in the Bewi Group. And today, we have a slightly extended quarterly presentation. If you have any questions related to the results or the presentation, please contact us by e-mail or telephone as you cannot submit questions for this webcast.
We will start with a review of the quarter, where our CEO, Christian Bekken, will go through the highlights. And our CFO, Stein Inge Liasjo, will then review the developments for the segments. After that, Christian will talk more about the strategy and outlook, including market developments, sales and margin, before Stein Inge explains what this means for the group's financial performance and key financial metrics. We will conclude with a summary.
And with that, I'll leave the word to you, Christian.
Thank you, Charlotte. It
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