Befesa raises lower end of 2026 earnings guidance to €260 million before U.S. grant
Key Facts
Befesa narrowed its 2026 adjusted EBITDA guidance, excluding the U.S. grant, to €260–270 million from its previous range of €250–270 million, according to an investor relations disclosure. The change raises the lower end of the forecast while keeping the upper end at its previous level. Including the expected contribution from the grant tied to critical minerals produced in the United States, the full-year range is €286–296 million. The company said the grant under Section 45X is expected to add about €26 million to adjusted EBITDA in the fourth quarter of 2026. The guidance thus separates expected operating performance from the grant's additional impact.
Adjusted EBITDA was €68 million in the third quarter of 2026, up 10% year on year, Befesa said. The comparable figure for the third quarter of 2025 was €62 million, when the metric grew 27% year on year. In the first nine months of 2026, adjusted EBITDA rose to €192 million, up 10% from the same period a year earlier, when it was €174 million and grew 15% year on year. The comparison shows that the annual increase in the current period was slower than the growth rates the company posted in the comparable periods of 2025. The third quarter and year-to-date period form the operating basis for the company's updated full-year range before the grant is included.
Befesa attributed the improvement to higher zinc prices and a recovery in secondary aluminum margins, saying the two factors "more than offset" the impact of lower volumes linked to maintenance shutdowns. The company added that results were also affected by mixed conditions in the steel market, higher energy costs and general inflation, as well as unfavorable foreign-exchange movements. In its third-quarter 2025 results statement, Befesa said it had benefited from favorable zinc treatment charges and effective hedging strategies for the metal's price. Those factors provide context for comparing the two periods, as they relate to zinc-market items and how the effects of price movements are managed. The 2026 disclosure identifies higher prices and a recovery in secondary aluminum margins as the direct drivers of the latest improvement.
Befesa's operating cash flow grew 12% year on year to €128 million in the first nine months of 2026, according to the disclosure. Cash available at the end of September was €126 million, while net debt reached €564 million, down 8% year on year. These figures place operating performance alongside liquidity and debt indicators for the same period. The U.S. grant was part of the revised guidance, but is tied to a tax claim for fiscal 2025, not to cash expected to be collected in 2026. The company estimated the grant at about $29 million, equivalent to around €26 million at a dollar-to-euro exchange rate of 1.12. The final claim value and timing of collection remain subject to review by the U.S. Internal Revenue Service.
Befesa said the first grant payment is expected to be collected in the first half of 2027, after the U.S. Internal Revenue Service reviews the claim. The tax credit is tied to critical minerals produced at the company's zinc refinery in Mooresboro, and its current estimate is based on the fiscal 2025 claim. The expected collection timing means the grant's contribution to 2026 EBITDA guidance precedes the related cash flow. The company therefore presents a full-year range of €286–296 million including the expected impact, alongside a range of €260–270 million excluding it. The next date specified in the disclosure is the first half of 2027, when the company expects to collect the first payment after the review is complete.