Umicore SA (UMICF) Full Year 2025 Earnings Call Highlights: Strong Financial Performance Amid …

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Sat, February 21, 2026 at 10:05 AM GMT+9 3 min read

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**Revenue Growth:** Battery Cathode Materials revenue grew by approximately 11% compared to 2024.

**EBITDA:** Increased by 11% to EUR847 million, with a 24% EBITDA margin.

**Free Cash Flow:** EUR524 million, supported by gold inventory sales.

**CapEx:** Reduced to EUR310 million from a guided EUR400 million.

**Net Debt:** Reduced to EUR1.4 billion, with a leverage ratio of 1.6x adjusted EBITDA.

**Adjusted Net Income:** EUR288 million, up EUR33 million from the previous year.

**Adjusted Earnings Per Share:** Increased by 13% to EUR1.2.

**Dividend:** Proposed EUR0.50 per share, maintaining a payout ratio of 42%.

**Efficiency Savings:** Achieved EUR100 million, offsetting EUR68 million in inflation.

**Headcount Reduction:** Group headcount reduced by 3%.

**Battery Recycling Solutions EBITDA:** Improved to minus EUR21 million from a forecasted minus EUR25 million.

**Catalysis EBITDA Margin:** 27%.

**Recycling EBITDA Margin:** 39%.

**Specialty Materials EBITDA Growth:** 16% growth with an EBITDA margin approaching 20%.

Warning! GuruFocus has detected 9 Warning Signs with UMICF.

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Release Date: February 20, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Umicore SA (UMICF) reported an 11% increase in adjusted EBITDA, reaching EUR847 million, driven by volume growth and efficiency savings.

The company successfully unlocked significant value by selling and leasing back its permanent gold inventories, strengthening its balance sheet.

Umicore SA (UMICF) achieved its efficiency target of EUR100 million, which helped offset inflation and foreign exchange headwinds.

The company reported strong performance in its Catalysis and Specialty Materials business groups, with EBITDA margins of 27% and 20%, respectively.

Umicore SA (UMICF) maintained a solid financial position with a leverage ratio of 1.6x adjusted EBITDA, down from 1.9x the previous year.

Negative Points

The geopolitical landscape and market volatility continue to pose challenges, impacting supply chains and business operations.

The Battery Materials Solutions segment faced a challenging market environment, with inherent volatility and slower-than-expected ramp-up in customer contracts.

The company experienced process inefficiencies in its Recycling segment, leading to additional costs and rework.

Umicore SA (UMICF) anticipates increased corporate costs due to investments in AI-driven solutions to enhance operational excellence.

The company did not provide concrete guidance for 2026 due to the dynamic market environment, creating uncertainty for investors.

 






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Q & A Highlights

Q: Can you elaborate on the outlook of your hedge book and the limitations to hedging more into the future? A: Wannes Peferoen, CFO, explained that while specific hedge levels are not disclosed, the company has locked in 70% of its exposure for 2026 and 2027. The limitations for future hedging, particularly for 2029 and 2030, include market backwardation and limited counterparty interest, which they are monitoring closely.

Q: What is your view on the consensus for 2026, and how are take-or-pay contracts affecting Battery Materials? A: Bart Sap, CEO, noted that while it’s too early for concrete guidance, they expect progress in 2026. The take-or-pay contracts are increasingly important due to slower ramp-up in battery materials, and they are financially covered for volume shortfalls.

Q: Can you quantify the process inefficiencies in Recycling, and will they recur in 2026? A: Wannes Peferoen, CFO, stated that while there were some technical hiccups causing additional costs, they were not material and were offset by efficiencies elsewhere. These inefficiencies are not expected to recur in 2026.

Q: What are the priorities for allocating excess free cash flow if metal prices remain favorable? A: Bart Sap, CEO, emphasized the focus on maintaining a strong balance sheet and being cash disciplined. Once the balance sheet is solidified, they will decide on the allocation of excess funds.

Q: What is the probability of renewing the SK On contract in 2026, and what are the margins for take-or-pay versus actual volumes? A: Bart Sap, CEO, confirmed the renewal of the SK On contract for 2026. The take-or-pay margins are designed to protect investments, and the range provided during the CMD reflects strong margins to cover volume shortfalls.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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