Befesa S.A. (BFSAN) Q3 2026 Earnings Report
MX:BFSAN Q3 2026 EPS Results
- Actual EPS
- MXN 10.80
- Consensus EPS
- MXN 10.80
- Beat/Miss
- Met expectations
- One Year Ago EPS
- MXN 10.99
MX:BFSAN Q3 2026 Revenue Results
- Actual Revenue
- MXN 6.58B
- Expected Revenue
- MXN 6.52B
- Beat/Miss
- Beat by +MXN 61.28M
- YoY Revenue Growth
- +7.35%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
Befesa S.A.'s next earnings date is estimated for March 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was predominantly positive. Befesa raised its 2026 adjusted EBITDA guidance, reported double-digit EBITDA growth, improved margins and leverage, completed the Bernburg expansion, and identified a recurring U.S. Section 45X benefit of $25 million-$30 million per year. These positives outweighed challenges including weaker Asian and European steel markets, lower volumes in some regions, higher energy and inflation costs, tight aluminum scrap availability, low treatment charges, and a negative FX impact.
For fiscal year 2026, Befesa specified adjusted EBITDA guidance between EUR 260 million and EUR 270 million, excluding any contribution from IRA 45X, and including the approximately EUR 26 million 45X contribution, the accounting guidance range would be EUR 286 million-EUR 296 million; the 45X benefit is expected to contribute $25 million-$30 million per year for nine years, stepping down from 2031 to 2033, with the first cash in the first half of 2027. CapEx is expected to be around EUR 70 million, leverage around 1.8x by year-end including 45X, and EPS above EUR 2.9. Steel dust volume is expected to be similar or a slightly higher total volume than last year, with U.S. volumes up 60,000 tons-70,000 tons, 2027 U.S. growth around 50,000 tons and potentially another 60,000 tons, 70,000 tons in 2028 to be confirmed; Q4 volume is expected to be a little higher than Q4 of 2025, around 320,000 tons. Salt slags volumes are expected to maintain broadly stable volumes, the secondary aluminum metal margin is expected to continue improving in the last quarter, Q4 coke prices are expected to be slightly higher, electricity and natural gas prices higher, and general inflation is expected to continue to be a headwind. The Recytech expansion is expected to require EUR 60 million-EUR 70 million in two years, or EUR 30 million-EUR 35 million per year, while Bernburg is expected to contribute in the range of EUR 6 million in 2027; the EUR 300 million medium-term level becomes EUR 330 million with the grant.
- U.S. Section 45X Grant Expected to Add Recurring EBITDABefesa concluded that its U.S. zinc business is eligible for the Inflation Reduction Act Section 45X advanced manufacturing production credit. The credit is worth 10% of the operating cost of producing special high-grade zinc at Mooresboro, with no further capital investment required for eligibility. Management expects a positive adjusted EBITDA impact of $25 million-$30 million per year for nine years, with approximately EUR26 million recorded in Q4 2026 and the first cash expected in the first half of 2027.
- 2026 Adjusted EBITDA Guidance RaisedOperational adjusted EBITDA guidance for fiscal 2026 was specified at EUR260 million-EUR270 million, with the lower end lifted by EUR10 million due to an expected stronger Q4 contribution. Including approximately EUR26 million from the Section 45X filing, adjusted EBITDA guidance is EUR286 million-EUR296 million.
- Nine-Month EBITDA and Profitability GrowthFirst-nine-month total adjusted EBITDA reached EUR192 million, up 10% year-over-year. Group adjusted EBITDA margin increased to 22% in Q3 2026 from 21% in Q3 2025, while net income and EPS increased 12% year-over-year.
- Continued Deleveraging and Improved LeverageFinancial leverage declined to 2.16x in September 2026 from 2.6x in September 2025. The deleveraging trend continued for the tenth consecutive quarter, and management expects to reach its target leverage range of 1.5x-2x during Q4 2026, with year-end leverage expected to be around 1.8x including the Section 45X contribution.
- Steel Dust EBITDA Increased Despite Mixed ConditionsNine-month Steel Dust adjusted EBITDA increased 2% year-over-year, or EUR4 million, to EUR158 million, while the segment margin improved to 27% from 26%. Higher zinc spot prices were the main driver of the increase.
- Strong U.S. Steel Dust Growth and Contract Ramp-UpU.S. steel production increased year-over-year, supported by demand from data centers, energy infrastructure, and industrial projects. Utilization improved meaningfully versus last year, new electric arc furnace supply contracts were ramping up as expected, and management continued to expect a 60,000 tons-70,000 tons increase in U.S. volumes versus last year.
- European Steel Dust Operations Maintained a High Load FactorDespite weaker construction activity, softness in the automotive sector, and higher electricity prices in Europe, operations continued to perform strongly, with the load factor increasing to 90%, up by 2% year-over-year.
- Aluminum Segment EBITDA Increased 52%Adjusted EBITDA in the aluminum segment increased 52% year-over-year to EUR34 million, driven by the expected improvement in pricing and metal margins during the second half of 2026.
- Salt Slags Revenue, EBITDA, and Margin ImprovementSalt Slags revenue increased 10% year-over-year to EUR93 million despite slightly lower volumes. Better prices more than offset the volume decline, driving EBITDA up 25% year-over-year to EUR29 million and expanding the margin by 370 basis points to 31%. Management attributed the improvement mainly to stronger collection fees and more profitable aluminum sales.
- Secondary Aluminum Returned to Positive EBITDASecondary aluminum revenue increased 3% year-over-year to EUR268 million. Despite a 6% decline in production volumes, a significant expansion of the metal margin moved EBITDA from negative EUR0.6 million in the prior year to positive EUR5.4 million.
- Supportive Zinc Price EnvironmentThe average LME zinc price for the first nine months was $3,512 per ton, up 27% year-over-year. Q3's average price was $3,830 per ton, up 36% year-over-year, with the quarter's trading range between $3,474 and $4,186 per ton. Management said tight concentrate supply and exceptionally low inventory levels remained supportive market fundamentals.
- Extended Zinc Hedging at Record High LevelsBefesa extended its zinc hedging book through the end of Q3 2029. The hedging book covers the full fiscal years 2027 and 2028 and three quarters of 2029, at record high levels of $3,000 for 2027, $3,100 for 2028, and $3,200 for the first nine months of 2029.
- Operating Cash Flow and Liquidity ImprovedNine-month operating cash flow reached EUR128 million, up 11% from the prior year and above the previous year's EUR115 million. Cash on hand was EUR126 million, and the fully undrawn EUR100 million revolving credit line provided almost EUR230 million of liquidity.
- Bernburg Expansion Completed and RampingThe Bernburg growth project was completed after the new line was hot commissioned at the end of September. Production was ramping during Q4, with an increasing contribution expected after the ramping phase and a 2027 EBITDA reference of approximately EUR6 million.
- Capital Allocation Supports Future Shareholder ReturnsManagement reiterated its capital allocation priorities of maintenance CapEx, dividends, balance-sheet strength, high-return growth, and returning excess cash to shareholders. The company paid EUR1 per share for 2025, up from EUR0.64 in 2024, and expects additional shareholder remuneration through buybacks or special dividends beginning in 2027 once leverage is within the target range.
MX:BFSAN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 04, 2027 | 2026 (Q4) | 35.14- | 17.75 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 10.8010.80 | 10.99 | -1.73% (-0.19) | |
| Jul 29, 2026 | 2026 (Q2) | 12.4713.46 | 11.41 | 17.96% (+2.05) | |
| Apr 30, 2026 | 2026 (Q1) | 9.9110.99 | 10.57 | 4.00% (+0.42) | |
| Feb 26, 2026 | 2025 (Q4) | 22.7017.75 | 13.95 | 27.27% (+3.80) | |
| Oct 30, 2025 | 2025 (Q3) | 8.3310.99 | 2.54 | 333.33% (+8.45) | |
| Jul 30, 2025 | 2025 (Q2) | 8.4511.41 | 5.49 | 107.69% (+5.92) | |
| Apr 30, 2025 | 2025 (Q1) | 7.4010.57 | 5.07 | 108.33% (+5.49) | |
| Feb 27, 2025 | 2024 (Q4) | 14.2813.95 | 16.06 | -13.16% (-2.11) | |
| Oct 31, 2024 | 2024 (Q3) | 8.812.54 | 3.8 | -33.33% (-1.27) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.