Cabka delivers disciplined SHIFT execution in 2025 with EBITDA growth and significant net debt reduction

Core Insights - Cabka successfully stabilized its operations in 2025, focusing on discipline, margins, and cash generation, resulting in stronger gross margins and improved EBITDA [2][3] - The SHIFT program effectively restored operational control and financial flexibility, leading to a rebound in Contract Manufacturing and continued growth in the ECO business [3][4] - The company enters 2026 with reduced leverage and a disciplined capital allocation framework, expecting revenue improvement and further EBITDA margin expansion [4][12] Financial Performance - Revenues for 2025 were €180.0 million, a 1% decrease from €181.9 million in 2024 [4][18] - Operational EBITDA increased to €21.1 million, reflecting a 3% improvement from €20.5 million in 2024, with an EBITDA margin of 11.7% [4][26] - Net loss improved to €-7.4 million from €-9.4 million in 2024, supported by the execution of the SHIFT plan [4][7] Business Segments - In Europe, the Portfolio segment faced challenges, with revenues declining 6% year-over-year, particularly in H1 2025 [5][19] - The US Portfolio business saw a 2% decline for the full year, but pricing strategies and volume growth contributed to a 4% overall growth in US operations [6][20] - Contract Manufacturing in Europe grew by 31% in 2025, driven by improved customer engagement and market conditions [9][19] Cost Management - Gross margin improved to 51.3% in 2025 from 50.9% in 2024, aided by better product mix and operational efficiency [7][24] - Total operating expenses decreased slightly to €182.0 million from €194.1 million in 2024, with personnel expenses reduced by €2.3 million [25][50] - Net debt decreased to €62.6 million, with a net debt/EBITDA ratio of 2.7x at year-end 2025, down from 3.2x in 2024 [27][28] Strategic Outlook - The strategic roadmap for 2026-2030 focuses on operational excellence and margin expansion in the first phase, followed by market consolidation and portfolio expansion in the second phase [13][14] - The company aims to increase revenues to €215 million by 2028 and €300 million by 2030, with EBITDA margins targeted at 13-15% and 15-17% respectively [16][16] - Cabka's commitment to sustainability is highlighted by its leadership in recycling, with 86% of raw materials sourced from recycled materials [32][33]