Aquafil Group (ECNL.MI) has demonstrated a strong start to 2025, with its first-quarter results highlighting improved profitability and a strategic focus on sustainable products. The company reported consolidated revenues of €146.9 million, with adjusted EBITDA increasing by 12.2% year-over-year. A significant portion of this success can be attributed to the ECONYL® product line, which accounted for 60.5% of fiber revenues, marking a 3.3 percentage point increase from the previous quarter.
Despite facing a 2.0% decrease in sales volumes and a 7.3% revenue reduction in the EMEA region, Aquafil's resilience was evident through its improved EBITDA margins, which exceeded 11%. This achievement was supported by enhanced gross profit margins and strategic cost management. The North American market, particularly the Business Continuous Filament (BCF) segment, showed signs of recovery, contributing to the company's optimistic outlook for 2025.
Market performance across regions varied, with Asia Pacific and EMEA aligning with budget forecasts, while the U.S. market exceeded initial recovery expectations. The growth in ECONYL® sales underscores Aquafil's commitment to sustainability and the circular economy. Financial analysts at Stonegate Capital Partners have valued Aquafil using Discounted Cash Flow (DCF) and Enterprise Value to EBITDA (EV/EBITDA) methodologies, suggesting a valuation range between €4.86 and €5.27.
Aquafil's financial strategy remains focused on debt management, with the Net Financial Position to EBITDA ratio stable at 3.45x at the end of Q1 2025. As the company continues to navigate global market challenges, its emphasis on sustainable product offerings and operational efficiency positions it well for potential growth and adaptation in the evolving market landscape.
