- Strong Net Cash Flow: Aurubis reported EUR 677 million net cash flow, up from EUR 537 million in the prior year.
- Revenue Growth: Revenues rose 6% to EUR 18.2 billion, driven by higher metal prices.
- Dividend Increase: Proposed dividend raised to EUR 1.60 per share (up from EUR 1.50), reflecting a 27% payout ratio.
- Operating ROCE Decline: ROCE fell to 8.8% from 11.5% year-over-year due to strategic investments.
- Future Guidance: Forecasts operating EBITDA of EUR 580–680 million and EBT of EUR 300–400 million for fiscal year '25–'26.
Segmental Performance
The Custom Smelting & Products segment delivered an operating EBT of EUR 446 million, almost at the prior year level. Multimetal Recycling generated an operating EBT of EUR 13 million, impacted by higher ramp-up costs for strategic projects and an impairment on an equity investment. Copper cathode production remained stable at 1.1 million tonnes, while the company processed around 2.2 million tonnes of concentrate, a slight decline year-over-year.
Guidance and Outlook
Aurubis expects an operating EBT between EUR 300 million and EUR 400 million for the next fiscal year, with free cash flow in a positive territory. The company forecasts a net cash flow range of EUR 640 million to EUR 740 million, driving free cash flow before dividend to breakeven. Operating ROCE is expected to be between 7% and 9%. Analysts estimate next year's revenue growth at 12.5%.
Valuation and Dividend Policy
Aurubis' current valuation metrics include a P/E Ratio of 8.42, P/B Ratio of 1.04, and EV/EBITDA of 4.72. The company's dividend policy targets a payout ratio of up to 30% of consolidated net income, with a proposed dividend of EUR 1.60 per share, corresponding to a 27% payout ratio. The Dividend Yield is 1.26%. The updated capital allocation policy aims to maintain a strong balance sheet while pursuing growth and shareholder returns.
Strategic Progress and Challenges
Aurubis has made significant progress on its strategic projects, including Complex Recycling Hamburg and Aurubis Richmond Phase 2. The company has secured key raw material agreements, supporting long-term supply security and ESG positioning. However, the recycling markets have seen only a slight recovery, mainly due to a higher copper price and higher availability of copper scrap. The tax rate is expected to remain high, around 26%, due to a higher tax rate in Bulgaria and one-off special items.