BEWI’s adjusted earnings margin rises to 13.3% in the third quarter of 2026
Key Facts
BEWI reported on November 4, 2026, that its adjusted EBITDA margin rose to 13.3% in the third quarter, compared with 11.4% in the same period a year earlier. The company attributed the improvement to sales growth, a stronger gross margin, cost control and profitability-enhancement measures. CEO Christian Beck said the company had delivered year-on-year sales growth for the eighth consecutive quarter. He added that all three segments contributed to the improvement in earnings, reflecting a broader recovery across the group. Performance was split between one segment that posted record earnings, another that returned to profitability and a third that increased earnings despite lower volumes.
Packaging and Components was the largest earnings contributor among the segment details reported in the results, with sales rising 17.6% to 101.8 million euros. Adjusted earnings increased 25.1% to 18.6 million euros, a record for the segment. The company linked sales growth to higher prices and increased volumes in food packaging and automotive components. The performance shows that the segment combined higher sales with growth in adjusted earnings during the quarter. Its record earnings also contributed to the group’s improved results, alongside the contributions of the other two segments.
In Circular Economy, sales rose 33% to 20 million euros, alongside a 49% increase in sales volumes of recycled GPPS. Adjusted earnings turned positive at 1.8 million euros, after the segment recorded an adjusted loss of 0.7 million euros in the third quarter of 2025. The company attributed the sales increase to growth in sales of recycled material, while the comparison showed the segment moving from a loss to a profit. Insulation and Construction increased adjusted earnings by 11% to 11 million euros. This came despite a 9% decline in volumes, amid a weak market for new residential construction of commodity products in the Nordic countries.
On liquidity, cash flow from operating activities was 26.4 million euros in the quarter and reached 72.6 million euros in the first nine months of 2026. Net debt, as defined by the company and excluding IFRS 16 and other financial assets, fell to 150.1 million euros at the end of September, from 197.4 million euros at the end of 2025. These figures put earnings growth in the context of improved cash flow and lower debt during the period. In the second quarter of 2026, the company reported sales of 247.8 million euros, up 19% year on year, and adjusted earnings of 34.2 million euros, up 57%, with a margin of 13.8%. Management described the second quarter as the strongest seasonally, providing a comparison between third-quarter performance and the previous quarter, which was stronger seasonally.
The margin comparison shows a decline from 13.8% in the second quarter to 13.3% in the third, while remaining above the 11.4% recorded a year earlier. Segment results, meanwhile, presented a mixed picture: weakness in new residential construction weighed on volumes in Insulation and Construction, while Packaging and Components supported earnings growth and Circular Economy returned to profitability. Beck said, "BEWI delivered year-on-year sales growth for the eighth consecutive quarter," pointing to contributions from all three segments to the improvement in earnings. The company has set February 11, 2027, as the date for announcing its fourth-quarter 2026 results. That next announcement will follow a period in which investors can track continued sales growth, segment performance and liquidity.