Semperit posted Q2 revenues of € 169m (H1: € 320m), largely flat yoy but roughly 11% above the weak Q1, which was impacted by project delays within the belting division and silicon rubber tooling (both part of SEA segment). Thanks to catch-up effects, SEA sales showed a 2.6% yoy increase to € 101m despite rather challenging end markets. Within SIA (-4.6% yoy to € 68m), demand for profiles remained weak due to the continuously subdued construction sector, while hoses showed first recovery signals, especially within the direct consumer business. The overall improving order activities should provide a decent visibility into further growth during H2.
Q2 EBITDA of € 19.6m (11.6% margin) was down 19% yoy as margins in both segments were still below last year's figure. This was partially due to higher raw material prices and increased personnel expenses. Importantly, the company managed to significantly improve its profitability vs Q1 (EBITDA +76% yoy) largely carried by the sales rebound in SEA (margin +5pp qoq to 10.6%) but also cost saving initiatives bearing fruit. The margin of SIA was down yoy but remained on a high level of 19.1%. Operating EBITDA (excl. project costs for digitalization projects) stood at € 20.9m. H1 EBITDA of € 30.7m was down 35% yoy; op. EBITDA stood at € 32.9m.
Free cash flow in H1 amounted to € 13.9m, down from € 23.6m in the prior year, as lower earnings and higher tax payments outweighed working capital improvements, particularly from inventory reductions. Net cash stood at € 49.8m at the end of June (vs. € 57.3m in December 2024), supported by a robust liquidity position of € 113m. The equity ratio of 45.5% underlines the group's solid financial footing, giving management room to maintain dividends, finance digitalization projects, and invest selectively even in a weaker macro environment.
FY25 guidance confirmed. Management continues to expect operating EBITDA of € 65-85m, which excludes some € 5m in digitalization investments (eNuW: € 73.7m) thanks to a notably better H2, which is expected to benefit from seasonal demand patterns, stabilizing order intake, and continued efficiency improvements.
Our take: The sequential Q2 rebound shows that Semperit's operational levers, which include cost discipline, production flexibility, and selective pricing, can restore profitability even in a somewhat subdued demand environment. While H1 confirms that end-market weakness, especially in SEA, still caps upside in 2025, the strong balance sheet and focus on margin protection support the medium-term equity story. We continue to see Semperit as an attractive cyclical recovery play with plenty of growth prospects, which should gain momentum once funds from Germany's planned € 500bn infrastructure investments get deployed. BUY with an unchanged € 18.20 PT based on DCF.
ISIN: AT0000785555
