Azelis Group (AZE) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached EUR 2.2bn, up 3.2% in constant currency, with organic growth returning in Q2 after four quarters of decline and a 4% organic increase in Q2.

• Gross profit margin expanded to 24.2% in H1, reflecting positive pricing, favorable inventory, and higher growth in Asia Pacific.

• Adjusted EBITA/EBITDA reached EUR 233m (margin 10.7%), up 2.6% year-over-year, with pricing offsetting most cost inflation.

• Net profit rose to EUR 86m, with cash earnings per share of EUR 0.52.

• Free cash flow was EUR 122m, with leverage stable at 3.4x and net debt at EUR 1.6bn.

Financial highlights

• H1 2026 revenue: EUR 2.2bn, up 3.2% year-over-year in constant currency.

• Gross profit: EUR 524m, up 4.3%, with a margin of 24.2%.

• Adjusted EBITA: EUR 233m, up 2.6% year-over-year; margin stable at 10.7%.

• Net profit: EUR 86m, slightly up due to lower financing costs despite lower operating profit.

• Free cash flow: EUR 122m, with a conversion ratio of 52.3%, down year-over-year due to higher working capital investment.

Outlook and guidance

• Order books remain positive for Q3, supporting a positive adjusted EBITA/EBITDA growth outlook for the full year, assuming current market conditions persist.

• No significant price changes expected from suppliers in the near term; margin benefit from lower-cost inventory expected to ease.

• Focus remains on executing commercial and strategic priorities, cost discipline, and strong cash flow generation.

• The specialty chemicals and food ingredient distribution market remains structurally attractive, with long-term trends supporting growth.

• Current trends are expected to continue until the Middle East conflict is resolved.