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1. Company Snapshot

1.a. Company Description

NV Bekaert SA provides steel wire transformation and coating technologies worldwide.The company operates through four business units: Rubber Reinforcement, Steel Wire Solutions, Specialty Businesses, and Bridon-Bekaert Ropes Group.It offers tire cord and bead wire products for tire sector; hose reinforcement wire and conveyor belt reinforcement products; and steel wire products and solutions for agriculture, energy and utilities, mining, construction, consumer goods, and the industrial sectors.


The company also provides ropes for a range of sectors, including surface and underground mining, offshore and onshore energy, crane and industrial, fishing and marine, and structures; fine steel cords for elevator and timing belts; and window regulator and heating cords for the automotive sector.In addition, it offers building products that reinforce concrete, masonry, plaster, and asphalt; fiber technologies for the filtration, heat-resistant textiles, electroconductive textiles, hydrogen electrolysis technologies, the safe discharge of static energy, sensor technologies, and the semiconductor business; and combustion technologies for gas and hydrogen burners, and residential and commercial heat exchangers.The company was founded in 1880 and is headquartered in Zwevegem, Belgium.

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1.b. Last Insights on BEKB

NV Bekaert's recent performance faced negative drivers, primarily due to challenging end markets. Despite stable Q3 2025 sales (-1% vs. Q3 2024) and a 3% volume increase driven by energy and utilities, the company is taking action to optimize its cost base and production footprint. Bekaert's share buyback program remains active, with a €25 million tranche starting on November 21, 2025, and a completed fourth tranche having repurchased 667,653 shares for €25 million. This strategic move aims to cancel shares and benefit shareholders.

1.c. Company Highlights

2. Bekaert's Resilience: A Strong H1 2025 Performance

Bekaert delivered a resilient financial performance in H1 2025, with revenues declining by 4.3% on a like-for-like basis, mainly due to lower volumes and raw material costs. Despite the challenging market environment, the company's EBITu margin was well-protected, thanks to cost control and mix improvements. The EPS came in at 2.36, slightly above estimates of 2.35. The gross margin declined from 18.4% to 16.6%, mainly due to region and customer mix effects in the Rubber Reinforcement business and margin erosion in the Specialty Business.

Publication Date: Aug -22

📋 Highlights
  • Resilient Free Cash Flow:: Generated EUR 123 million via EUR 135 million working capital improvements and EUR 21 million overhead cuts.
  • EBITu Margin Protection:: Margins stabilized at 8-8.5% despite 4.3% like-for-like sales decline, driven by cost control and mix improvements.
  • CapEx Reduction:: 2025 CapEx forecast at EUR 140 million (vs. EUR 150 million), with 50% allocated to maintenance and safety, 50% to growth.
  • Tariff Pass-Through Challenges:: First 25% tariff surge fully offset, but second 50% in June only partially absorbed, impacting H1 margins.
  • Segment Performance Variability:: Rubber Reinforcements faced 16.6% gross margin decline (from 18.4%), while Steel Wire Solutions showed stable growth.

Segment Performance

Bekaert's reporting segments showed varying performances, with some segments experiencing volume declines and others showing resilience. The Rubber Reinforcements segment faced challenges, while the Steel Wire Solutions segment saw a stable environment with some regional variations. The company's Sustainable Construction segment is rebalancing resources and focusing on high-mix products.

Cash Flow Management

Bekaert prioritized cash flow management, achieving a strong free cash flow of EUR 123 million. Working capital improvements were achieved through inventory reductions, mainly by reviewing consignment stock arrangements, improving production planning, and rightsizing capacities. The company's net debt to EBITDA ratio stands at -1.26, indicating a strong balance sheet.

Outlook and Guidance

Bekaert expects slightly lower sales in 2025 compared to 2024 on a comparable basis, mainly due to foreign exchange effects and changes in footprint. The EBITDA margin is expected to be between 8% and 8.5% for the full year. The company remains confident in achieving 10% profit levels in the long term, despite delays in growth platforms. As Seppo Parvi, CFO, noted, "We're trying to highlight remaining uncertainties around volume and end customer demand due to the tariff situation."

Valuation

With a P/E ratio of 8.61 and an EV/EBITDA ratio of 3.7, Bekaert's valuation appears reasonable. The company's dividend yield stands at 4.84%, and the free cash flow yield is 10.08%. The ROE is 10.82%, indicating a decent return on equity. These metrics suggest that the market has a relatively cautious view of the company's prospects, but the strong balance sheet and cash flow generation provide a solid foundation for future growth.

3. NewsRoom

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Bekaert - Update on the Share Buyback Program and Liquidity Agreement

Nov -28

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3 European Dividend Stocks Yielding Up To 13.3%

Nov -25

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Bekaert - Update on the Share Buyback Program and Liquidity Agreement

Nov -21

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Bekaert announces the next tranche of its Share Buyback Program

Nov -21

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Bekaert: Trading update for the nine months to September 2025

Nov -21

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Bekaert - Update on the Share Buyback Program and Liquidity Agreement

Nov -14

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Bekaert - Update on the Share Buyback Program and Liquidity Agreement

Nov -07

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Bekaert - Update on the Share Buyback Program and Liquidity Agreement

Oct -31

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.93%)

6. Segments

Rubber Reinforcement

Expected Growth: 1.8%

The 1.8% growth of Rubber Reinforcement from NV Bekaert SA is driven by increasing demand for high-performance tires, growing adoption of electric vehicles, and rising infrastructure development in emerging markets, coupled with Bekaert's innovative product offerings and strategic partnerships.

Steel Wire Solutions

Expected Growth: 1.9%

Bekaert's Steel Wire Solutions segment growth of 1.9% is driven by increasing demand for high-strength steel wire in the automotive and construction industries, as well as the company's focus on innovation and product differentiation. Additionally, Bekaert's expansion into emerging markets and strategic partnerships have contributed to the segment's growth.

Specialty

Expected Growth: 2.1%

Bekaert SA's Specialty segment growth of 2.1% is driven by increasing demand for advanced materials in the automotive and aerospace industries, coupled with the company's strategic expansion into emerging markets and continuous innovation in steel wire products, resulting in market share gains and improved pricing power.

Bridon-Bekaert Ropes Group

Expected Growth: 2.2%

Bridon-Bekaert Ropes Group's 2.2% growth is driven by increasing demand for ropes and advanced cords in the construction, mining, and oil & gas industries. Additionally, the company's focus on innovation, cost savings initiatives, and strategic acquisitions have contributed to its growth. Furthermore, the rising need for safety and security in these industries has led to an increased adoption of Bridon-Bekaert's products, supporting its growth momentum.

Group

Expected Growth: 2.0%

Bekaert's 2.0% growth is driven by increasing demand for steel cord reinforcement in the tire industry, supported by growing automotive production and rising adoption of electric vehicles. Additionally, the company's expansion into emerging markets and strategic investments in R&D are expected to contribute to its growth momentum.

7. Detailed Products

Steel Cord Products

Steel cord products are used in the manufacturing of tires, providing strength, stability, and durability.

Fiber Reinforced Products

Fiber reinforced products are used in various industrial applications, providing strength, durability, and resistance to corrosion.

Combustion Wire Products

Combustion wire products are used in the manufacturing of spark plugs, providing a reliable and efficient ignition source.

Mooring Ropes

Mooring ropes are used in the offshore industry, providing a secure and reliable connection between vessels and mooring points.

Advanced Filtration Products

Advanced filtration products are used in various industrial applications, providing efficient and reliable filtration solutions.

8. NV Bekaert SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for NV Bekaert SA is moderate, as there are alternative products available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for NV Bekaert SA is low, as the company has a strong brand presence and customers are loyal to its products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for NV Bekaert SA is moderate, as the company has a diverse supplier base, but some suppliers have a higher bargaining power due to their size and market presence.

Threat Of New Entrants

The threat of new entrants for NV Bekaert SA is high, as the industry is attractive and there are low barriers to entry, making it easy for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry for NV Bekaert SA is high, as the industry is highly competitive, and companies are constantly competing on price, quality, and innovation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.85%
Debt Cost 5.80%
Equity Weight 70.15%
Equity Cost 11.72%
WACC 9.95%
Leverage 42.55%

11. Quality Control: NV Bekaert SA passed 6 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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Logista

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Value: 7.0

Growth: 5.9

Quality: 5.8

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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Strabag

A-Score: 6.6/10

Value: 8.1

Growth: 4.7

Quality: 6.2

Yield: 8.1

Momentum: 10.0

Volatility: 2.7

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Bekaert

A-Score: 6.1/10

Value: 8.7

Growth: 4.2

Quality: 4.7

Yield: 6.9

Momentum: 6.0

Volatility: 6.3

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A-Score: 6.1/10

Value: 4.7

Growth: 5.2

Quality: 6.2

Yield: 6.2

Momentum: 9.0

Volatility: 5.0

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Wallenius Wilhelmsen

A-Score: 5.8/10

Value: 9.2

Growth: 8.2

Quality: 7.9

Yield: 6.2

Momentum: 1.0

Volatility: 2.3

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Thyssenkrupp

A-Score: 4.8/10

Value: 9.8

Growth: 3.1

Quality: 2.3

Yield: 2.5

Momentum: 10.0

Volatility: 1.0

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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

37.2$

Current Price

37.2$

Potential

-0.00%

Expected Cash-Flows