Akwel (AKW) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was €510.6M, down 3.4% year-over-year, with stable EMEA sales but declines in Americas (-10.1%) and Asia (-3.4%).

• Net income attributable to the group was €13.6M, down 32.9% year-over-year, mainly due to the end of SCR tank litigation and related charges.

• Operating margin improved to 5.4% from 4.6% year-over-year, despite a €19.6M charge related to SCR tank litigation settlements.

• High cash levels maintained, with net cash position at €139.2M as of June 30, 2025.

• Workforce reduced to 8,718 employees, reflecting ongoing restructuring.

Financial highlights

• EBITDA dropped sharply by 86.8% to €6.5M due to SCR litigation and customer disputes; adjusted EBITDA excluding litigation would have been €58.9M (+19.9%).

• Operating income was €24.4M, down from €27.8M in H1 2024.

• Net margin decreased to 2.7% from 3.8% year-over-year.

• Investments totaled €19.9M, down from €30.8M in H1 2024.

• Equity stood at €597.8M, representing 71.3% of total assets.

Outlook and guidance

• Full-year 2025 revenue expected to decline slightly, but less severely than previously anticipated.

• SCR tank series production halt postponed to 2026; aftermarket activity to continue until 2030.

• Focus remains on electric vehicle transition, product development, and operational agility.

• New plant in Casablanca, Morocco, to be operational in early 2027.

• Additional workforce reductions planned in certain subsidiaries.