Nabaltec AG Reports Strong Q2, Raises FY24 Guidance

NuWays AG has classified Nabaltec AG as a "BUY" following strong Q2 results. The company's Q2 sales increased by 11% year-over-year to €54.4 million, driven by an 18% growth in volume. Notably, the Functional Fillers segment saw a 16% year-over-year increase, offsetting a slight 1% decline in the Specialty Alumina segment.

Q2 EBIT surged by 79% year-over-year to €5.9 million, fueled by better capacity utilization and lower energy costs. The EBIT margin improved to 10.8%. For the first half of the year, group sales rose by 2.2% to €108 million, while EBIT jumped by 28% to €10.9 million.

Nabaltec's operational performance and normalized working capital led to an operating cash flow of €24 million in H1, with a free cash flow of €10 million. The company maintains a robust balance sheet with €93 million in cash and a net cash position of €2.5 million.

Due to ongoing improvements, Nabaltec has raised its FY24 guidance, now expecting 2-4% year-over-year sales growth and an EBIT margin of 8-10%. The company continues to benefit from investments in environmental flame retardants and boehmite production.