Verallia (VRLA) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue declined 2.4% year-over-year to €1,723 million, mainly due to lower selling prices despite higher volumes and positive scope effects.

• Adjusted EBITDA for H1 2025 was €351 million (20.4% margin), down 18.7% year-over-year, with Q2 showing a strong sequential improvement in profitability.

• Net profit for H1 2025 was €68 million (EPS €0.57), compared to €123 million (EPS €1.06) in H1 2024; excluding PPA amortization, net profit was €90 million (EPS €0.76).

• Free cash flow improved significantly to €66 million in H1 2025 from negative €49 million in H1 2024, driven by lower capex and tight working capital management.

• BWGI's public tender offer succeeded, making it the controlling shareholder with 70.31% of share capital and 62.81% of voting rights.

Financial highlights

• Revenue for H1 2025 was €1,723 million, down 2.4% year-over-year; Q2 revenue was €905 million, down 2.5% year-over-year.

• Adjusted EBITDA margin for H1 2025 was 20.4%, down from 24.4% in H1 2024; Q2 margin improved to 22.5% from 18.0% in Q1 2025.

• Net debt at June 30, 2025 was €1,948 million, with a net debt/EBITDA ratio of 2.6x (up from 2.1x at Dec 2024), mainly due to dividend payment.

• Capital expenditures were €104 million (6.0% of revenue), down from €157 million in H1 2024.

• Cash conversion improved to 70.5% from 63.6% year-over-year.

Outlook and guidance

• 2025 adjusted EBITDA is expected around €800 million, with free cash flow generation of more than €200 million, assuming stable macroeconomic and geopolitical conditions.

• H2 priorities include further activity pickup, improved capacity utilization, and continued decarbonation roadmap, especially in Germany.

• Decarbonation initiatives continue with the launch of the Zaragoza hybrid furnace in Q3.