Aquafil Group Sees Improved Profitability and ECONYL® Growth in Q1 2025

Aquafil Group (ECNL.MI) reported promising financial results for the first quarter of 2025, showcasing strategic adaptability and operational efficiency despite challenging market conditions. The company's performance highlighted significant improvements in profitability and continued strength in its sustainable ECONYL® product line.

The company's consolidated financial results revealed a nuanced picture of market performance. While revenues decreased by 2.0% year-over-year to €146.9 million, adjusted EBITDA increased by 12.2%, signaling improved operational effectiveness. The most notable regional decline was in the EMEA market, where volumes dropped 1.9%, contributing to a 7.3% revenue reduction.

A key driver of Aquafil's resilience has been its ECONYL® product line, which now represents 60.5% of fiber revenues—a 3.3 percentage point increase from the previous quarter. This sustainable regenerated nylon product has become increasingly critical to the company's strategic positioning and financial performance.

The North American market showed particular promise, with the BCF segment delivering strong results and indicating potential market recovery. Management remains optimistic about growth prospects through 2025, with current order intake suggesting positive trends in both BCF and polymer segments.

Financially, the company has maintained discipline in debt management, with its net financial position to EBITDA ratio remaining stable at 3.45x. This demonstrates a continued focus on financial prudence amid market uncertainties.

Stonegate Capital Partners' valuation analysis suggests the company's stock could be valued between €3.85 and €5.27, depending on the methodology used. The analysis employed both discounted cash flow and enterprise value to EBITDA methods, providing a comprehensive assessment of the company's potential market value.

The results underscore Aquafil's strategic commitment to sustainability and operational efficiency. By maintaining strong performance in its ECONYL® segment and managing costs effectively, the company is positioning itself for potential growth in an evolving global market.