Nabaltec AG able to increase revenues again in the first quarter of 2025

Nabaltec AG able to increase revenues again in the first quarter of 2025

• Consolidated revenues in the first three months of 2025 at EUR 54.7 million (up 1.2% over the same quarter of the previous year)
• EBIT in the first quarter of 2025 at EUR 4.1 million (-18.0%); EBIT margin 7.5%
• Forecast for 2025 confirmed: Revenue growth in a range of 3% to 5%; EBIT margin in a range of 7% to 9%

Schwandorf, 22 May 2025 – Nabaltec AG grew by 1.2% in the first three months of 2025 compared to the same period of last year, despite a persistently difficult market environment in the chemical industry, and confirms its preliminary figures for the first quarter of 2025. The company generated consolidated revenues of EUR 54.7 million in the quarter (Q1/2024: EUR 54.0 million). Operating profit (EBIT) in the first quarter of 2025 was EUR 4.1 million (Q1/2024: EUR 5.0 million; -18.0%). The EBIT margin (EBIT as a percentage of total performance) was 7.5%, primarily being impacted by high energy costs.

"Despite a challenging environment in key target industries such as e-mobility and steel production, our company performed well in the first quarter of 2025 with slight revenue growth," reported Johannes Heckmann, CEO of Nabaltec AG. "With an EBIT margin of 7.5%, we are within our target range, even though high energy prices had a negative impact on earnings. The fine hydroxides product range in particular has once again proven to be a mainstay in high-growth markets. As a result, ever stronger demand in these sales markets means that sustainable growth can be expected in the future."

In the "Functional Fillers" product segment, Nabaltec earned revenues of EUR 40.3 million, compared to EUR 38.7 million in the same quarter from the previous year (+4.1%). The increase is partly due to volume growth. In the "Specialty Aluminas" product segment, revenues in the first quarter of 2025 amounted to EUR 14.4 million, compared to EUR 15.4 million in the same quarter from the previous year (-6.1%). As the refractories industry in Europe continues to struggle with sluggish sales, the development of this market has slowed down.

Additional turbulence triggered by US tariffs and the emerging trade war has not yet had an impact on Nabaltec. As things currently stand, both aluminum hydroxides and aluminum oxides are exempt from the new US tariffs. In addition, Nabaltec's US export share is very manageable due to its own local US production facilities. Despite the uncertain market due to the new tariffs and trade conflicts, business at the subsidiaries Nashtec and Naprotec developed positively in terms of revenues on a quarterly comparison.

For the first three months of 2025, cash flow from operating activities was EUR 12.9 million, compared to EUR 31.7 million in the first quarter of the previous year. In the same period of the previous year, sharp changes in working capital due to a decrease in other assets in the form of fixed-term deposits in the amount of EUR 15.0 million had a positive impact on operating cash flow. The cash outflow for investments increased from EUR 5.1 million in the same quarter from the previous year to EUR 5.5 million. The focus was on expanding capacities for boehmites and viscosity optimized hydrates, as well as on process optimization at the Schwandorf site.

"Investment in our capacity expansion remains an important step for Nabaltec. Even if some target sectors, such as the market for boehmites, are still hampered by a lack of impetus from industry, we expect to see greater momentum again in the medium term. With the adaptable set-up of our systems, we can also produce alternative products and qualities, thus achieving maximum flexibility."

In light of the planned price increases as of the second quarter, Nabaltec expects revenues growth in a range of 3% to 5% and an EBIT margin in a range of 7% to 9% for 2025 as a whole.

Note: Nabaltec AG's interim report January to March 2025 will be available for download as of 22 May 2025 at www.nabaltec.de/en/investor-relations/financial-reports. The Management Board of Nabaltec AG will also hold an earnings call on Q1/2025 Highlights on 22 May 2025 at 1:00 pm (CEST). Interested investors can register via the this link.

About Nabaltec AG:

Nabaltec AG, with registered office in Schwandorf, a chemicals business which has received multiple awards for innovativeness, manufactures, develops and distributes highly specialized products based on aluminum hydroxide and aluminum oxide on an industrial scale through its two product segments, "Functional Fillers" and "Specialty Aluminas." The company's product range includes eco-friendly flame retardant fillers and functional additives for the plastics industry. Flame retardant fillers are used e.g. in cables in tunnels, airports, high-rise buildings and electronic devices, while additives have applications in catalysis and in electric vehicles. Nabaltec also produces specialty oxides for use in technical ceramics, the refractory and polishing industries. Nabaltec maintains production sites in Germany and the US and plans to continue to develop its market position by expanding capacity, further optimizing processes and quality and making strategic extensions to its product range. On the strength of its specialty products, the company strives to attain the market leadership in each segment.

Contact: