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1. Company Snapshot

1.a. Company Description

Tessenderlo Group NV, together with its subsidiaries, engages in the agriculture, valorizing bio-residuals, energy, and industrial solution businesses worldwide.It operates through four segments: Agro, Bio-Valorization, Industrial Solutions, and T-Power.The Agro segment engages in the production, marketing, and trading of crop nutrients, including liquid crop and potassium sulfate fertilizers, as well as crop protection products.


This segment offers its specialty fertilizers under the Thio-Sul, KTS, K-Row 23, CaTs, GranuPotasse, SoluPotasse, and K-Leaf brands; agriculture herbicides under the LINEX and VELPAR brand names; SEVIN, an agricultural insecticide; and SECTAGON, an agricultural fumigant.The Bio-Valorization segment produces, sells, and trades in gelatins and collagen peptides, and proteins and fats for food, pharma, health and nutrition, pet food, agriculture, aqua feed, animal feed, energy, biodiesel, oleo-chemistry, and sanitary markets.The Industrial Solutions segment is involved in the production, sale, and trading of plastic pipe systems; water treatment chemicals; and other industrial activities, such as the production and sale of mining and industrial auxiliaries, and delivery of services for the treatment and disposal of produced and flowback water from oil and gas exploration, as well as the recovery of industrial process fluids.


The T-Power segment produces electricity through a combined cycle gas turbine of 425 MW capacity.It serves agriculture, food, industry, construction, health, and consumer goods end markets.The company was formerly known as Tessenderlo Chemie nv and changed its name to Tessenderlo Group NV in June 2017.


The company was founded in 1919 and is headquartered in Brussels, Belgium.Tessenderlo Group NV is a subsidiary of Verbrugge NV.

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1.b. Last Insights on TESB

Tessenderlo Group NV faced challenges due to a slowdown in its activities. A recent joint venture announcement with Darling Ingredients for collagen and gelatin production may not have been well-received. Evolving US renewable fuel regulations impacted the sector. A Baird analyst upgraded Darling Ingredients, citing a more favorable outlook for its Diamond Green Diesel joint venture. The Tessenderlo-Darling Ingredients JV is pending approvals, slated for 2026. No recent earnings release was found to assess short-term implications.

1.c. Company Highlights

2. Tessenderlo 2025: Resilient Growth Amid Impairments

2025 revenues rose 4.4% to €2.7 bn, while EBITDA climbed 8.5% to €288 m, reflecting a solid margin expansion despite a €80 m net loss driven by €78 m in impairments. EPS remains unreported, with staff noting that the joint venture with Darling Ingredients would strengthen the collagen portfolio. Valuation metrics show a P/E of –16.11, P/B of 0.77, P/S of 0.47, EV/EBITDA 8.11, dividend yield 3.48%, free‑cash‑flow yield 5.75%, ROIC 3.04%, ROE –4.67% and net debt/EBITDA 0.25.

Publication Date: Apr -19

📋 Highlights
  • Revenue & EBITDA Growth: Revenues rose 4.4% to EUR 2.7 billion; EBITDA grew 8.5% to EUR 288 million, driven by diversified operations and strategic acquisitions.
  • Net Loss from Impairments: Non-cash items and impairments totaling EUR 78 million (EUR 59 million finance costs) led to a EUR 80 million net loss despite strong EBITDA performance.
  • Strategic Acquisitions & Expansions: Completed acquisitions (Osterwalder AG, Metam Labels) and a joint venture with Darling Ingredients, plus EUR 21 million spent on two new acquisitions (Cinis), enhancing potassium and collagen markets.
  • Divisional Performance: Agro division led with EUR 117 million EBITDA; T-Power outperformed due to high availability, while Industrial Solutions faced construction sector slowdowns.
  • Capital Allocation & Outlook: EUR 225 million operating cash flow and EUR 135 million CapEx (half growth-related) support 2026 guidance, with EUR 158 million cash reserves allocated for strategic minority investments and hedging risks in turbulent markets.

Agro Division Performance

The Agro segment delivered €117 m EBITDA, the most profitable division, buoyed by stable feedstock demand and efficient cost controls, underscoring its role as the company's financial backbone.

Bio‑Valorization Mixed Results

Rendering contributed positively, yet gelatin and collagen faced restructuring setbacks and an Argentina incident, dampening overall EBITDA and highlighting the sector’s volatility.

Industrial & Machines Outlook

Industrial Solutions lagged due to a construction slowdown, while Machines & Technologies saw a strong first half but weakened second half, reflecting cyclical demand pressures.

T‑Power Flexibility

T‑Power performed well, driven by start‑stocks and high availability, and will continue to provide gas support during low renewable output periods, reinforcing its strategic flexibility.

CapEx & Cash Flow

CapEx matched 2025 at €135 m, split evenly between growth and maintenance, while operating cash flow reached €225 m, demonstrating robust liquidity for future investments.

Shareholder Returns

The company completed a share‑repurchase program and distributed €80 m in dividends and buybacks, reinforcing its commitment to EPS maximization despite the halted buyback and new investment vehicle plans.

Kerley SOP & Market Challenges

Kerley SOP faced sulfur shortages and higher energy costs; hedging positions for 2026/27 mitigate exposure, yet the plant’s vintage nature and maintenance burden led to significant impairments.

Picanol & Currency Risks

Fluctuating yen and rising interest rates create short‑term uncertainty, but mill capacity remains healthy and Chinese demand for Picanol technology continues to grow, supporting long‑term prospects.

2026 Guidance & Strategic Moves

CapEx guidance stays flat, with ferrochloride expansion in Kuhlmann and a gasification plant underlining a growth strategy that balances volume control and margin preservation, while the acquisition of Cinis opens potassium market opportunities.

3. NewsRoom

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Darling Ingredients (DAR) Is Up 8.8% After Renewable JV Moves Reshape Its Strategic Mix - Has The Bull Case Changed?

Feb -04

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Will Darling’s Collagen Joint Venture With Tessenderlo Recast Darling Ingredients' (DAR) Narrative?

Dec -16

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Darling Ingredients and Tessenderlo Group Sign Definitive Agreement to form New Company to Accelerate Growth in Attractive Collagen-Based Health, Wellness and Nutrition Sector

Dec -10

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Exploring Tessenderlo Group (ENXTBR:TESB) Valuation Following Notable Share Price Movements

Sep -13

Source:

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LVMH: Share transactions disclosure

Sep -09

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The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

Sep -09

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Cointreau Launches First-Ever Ready-To-Serve Range – Introducing Cointreau Citrus Spritz

Sep -09

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What Does the Steep 20% Drop Mean for Rémy Cointreau’s 2025 Outlook?

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.88%)

6. Segments

Agro

Expected Growth: 1.8%

Agro's 1.8% growth is driven by increasing demand for crop protection products, expansion in emerging markets, and strategic partnerships. Additionally, Tessenderlo Group's focus on sustainable agriculture and digital farming solutions contributes to the segment's growth. Furthermore, the company's diversified product portfolio and strong distribution network also support its growth momentum.

Bio-valorization

Expected Growth: 1.9%

Tessenderlo Group NV's Bio-valorization segment growth of 1.9% is driven by increasing demand for sustainable and eco-friendly products, government incentives for bio-based industries, and the company's strategic investments in R&D and capacity expansion, enabling it to capitalize on the growing biotechnology market.

Industrial Solutions

Expected Growth: 2.1%

Tessenderlo Group NV's Industrial Solutions segment growth of 2.1% is driven by increasing demand for sustainable and eco-friendly solutions, expansion into emerging markets, and strategic partnerships. Additionally, the segment benefits from the company's focus on innovation, operational efficiency, and cost savings initiatives, which enhance its competitiveness and profitability.

Machine & Technologies

Expected Growth: 1.7%

Tessenderlo Group NV's Machine & Technologies segment growth of 1.7% is driven by increasing demand for efficient and sustainable agricultural practices, government initiatives promoting precision farming, and rising adoption of automation and digitalization in the agricultural industry, leading to higher sales of specialized equipment and technology solutions.

T-Power

Expected Growth: 2.0%

T-Power's 2.0% growth is driven by increasing demand for renewable energy, favorable regulatory environment, and strategic partnerships. Additionally, investments in grid expansion and modernization, as well as growing electrification of transportation, contribute to the segment's growth.

7. Detailed Products

Potassium Chloride (KCl)

A key raw material for the production of fertilizers, glass, and ceramics.

Sulphuric Acid

A strong acid used in various industrial processes.

Recycled PVC

A sustainable alternative to virgin PVC, made from recycled materials.

Bisphenol A (BPA)

A chemical intermediate used in the production of polycarbonate and epoxy resins.

Tessenderlo Kerley International (TKI) Crop Protection

A range of crop protection products, including herbicides, insecticides, and fungicides.

Tessenderlo Kerley International (TKI) Plant Nutrition

A range of plant nutrition products, including fertilizers and micronutrients.

8. Tessenderlo Group NV's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Tessenderlo Group NV is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the industry and the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.92%
Debt Cost 4.34%
Equity Weight 89.08%
Equity Cost 6.10%
WACC 5.90%
Leverage 12.26%

11. Quality Control: Tessenderlo Group NV passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Rokita

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Growth: 3.6

Quality: 4.4

Yield: 10.0

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Tessenderlo

A-Score: 5.4/10

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Quality: 3.2

Yield: 3.8

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Value: 7.9

Growth: 2.3

Quality: 1.6

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Ercros

A-Score: 3.3/10

Value: 9.2

Growth: 1.2

Quality: 2.6

Yield: 1.9

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Volatility: 2.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.35$

Current Price

21.35$

Potential

-0.00%

Expected Cash-Flows