The Agfa-Gevaert Group in Q3 2025: continued decline in medical film, strong growth cloud and SaaS in HealthCare IT, soft markets in Digital Print & Chemicals

Group 1: Company Performance Overview - Agfa-Gevaert Group reported a continued decline in medical film markets, while experiencing strong growth in cloud and SaaS within HealthCare IT [2][4] - The overall revenue for Q3 2025 decreased by 7.1% to €257 million compared to Q3 2024, with a notable decline in the Radiology Solutions division [3][7] - Adjusted EBITDA for the group fell to €5 million, a decrease of 65.9% year-over-year, primarily due to the decline in Radiology Solutions [4][7] Group 2: Division-Specific Insights - HealthCare IT revenue decreased by 13.0% to €50 million, with a significant shift towards cloud technology impacting financial performance; however, recurring revenue grew by 0.6% [3][16] - Digital Print & Chemicals division saw a revenue increase of 5.1% to €115 million, driven by Specialty Films & Chemicals, despite unfavorable market conditions [4][17] - Radiology Solutions experienced a 19.4% revenue decline to €74 million, heavily influenced by the ongoing decline in the medical film market, particularly in China [3][18] Group 3: Financial Position and Cash Flow - The company achieved a positive free cash flow of €21 million in Q3, attributed to improvements in working capital and cash inflow from the AgfaPhoto arbitration [4][12] - Net financial debt increased from €37 million in Q4 2024 to €65 million by the end of Q3 2025, indicating a rise in overall debt levels [12][38] - The group’s liquidity headroom was reported at €126.8 million at the end of Q3, well above the minimum covenant requirement [12][12] Group 4: Strategic Initiatives and Future Outlook - Agfa is accelerating and extending its restructuring plans to optimize the cost base of traditional film activities, targeting €50 million in savings [5][24] - The company is exploring redevelopment opportunities for its site in Mortsel, Belgium, to support future growth [5][5] - The outlook for 2025 suggests a slightly negative net cash flow, influenced by outstanding receivables from the sale of the Offset Solutions business [10][10]