Ladies and gentlemen, welcome to the information on the Third Quarter 2025 Conference C all. I am Valentina de Carlos, call operator. I would like to remind you that all participants will be in listen only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. The forecasts, plans, forward looking assessments and statements contained in this presentation were made on the basis of all information available to AMAG up to 17th October 2025. The economic and trade policy environment has changed several times in recent months. Internal calculations and earnings analysis are based on various assumptions. These include, among other things, the continued validity of global U.S.
import duties on aluminium products. If the assumptions underlying the forecasts do not materialize, targets are not achieved or risks arise, actual earnings may differ from those currently anticipated. We undertake no obligation to update such forecasts in light of new information or future events. This presentation has been prepared with the utmost care and the data has been tracked. However, rounding, transmission or printing errors cannot be ruled out. AMAG and its representatives accept no liability for the completeness and accuracy of the information contained in this presentation. This presentation is also available in German, whereby the German version shall prevail in case of doubt. This presentation does not constitute a recommendation or invitation to buy or sell AMAG securities. At this time, it's my pleasure to hand over to Christoph Gabriel, Head of Investor Relations. Please go ahead.
Good morning, ladies and gentlemen, and welcome again to our conference call for the first three quarters of 2025 of AMAG . Today, Helmut Kaufmann, CEO and COO, as well as Claudia Trampitsch, CFO, will present the development and results of the first 9 months of this year. After the presentation, you have the opportunity to ask questions during the Q&A session. As usual, both the presentation and the press release have been published this morning on our homepage under Investor Relations. I would now like to hand over to Helmut. Please start your presentation. Thank you.
Good morning, ladies and gentlemen, from my side, it's a pleasure to present Q3 earnings, the result of the first 9 months for AMAG. I would like to start with slide number three, the highlights, and point out that AMAG showed high resilience in a continuously difficult environment. Rapidly implemented efficiency measures enabled stable earnings development in Q3 and also supported the performance of the first 9 months. The revenues grew by 5.4% to EUR 1.137 million compared to EUR 1.078 million the year before. This was mostly due to higher aluminium prices. The EBITDA came to EUR 114.2 million and this number already exceeds the lower limit of the range that we communicated in the past.
For the full year, where we said the limits would be EUR 100 million - EUR 130 million, with EUR 114.2 million the EBITDA is 22.6% lower compared to the same time period last year where AMAG achieved EUR 147.6 million. Net income after taxes reached EUR 33.8 million compared to EUR 54.3 million, which is a minus of 37.7%. Cash flow from operating activities recorded a growth of 23.3% to EUR 134.8 million compared to EUR 109.3 million last year same time period. With numbers presented, we can mention the following outlook for the financial year full year 2025. Since the EBITDA already exceeded the lower limit, we now say that we expect a result at the upper end of the communicated range close to the EUR 130 million. Although, and this is important to point out, experience shows that valuation effects can have a noticeable impact on these numbers.
Let me continue with slide number five and look at the current market sentiment. The so-called Purchasing Managers Index shows a slight improvement compared to previous period and the global threshold of 50 is slightly exceeded at this point in time. We do not see a significant improvement in the sentiment in the Eurozone and we do not see significant improvement in Austria, but a slightly stabilizing trend in Germany. Germany is an important market area for AMAG. Let us continue with slide number six and look at the total shipments of the AMAG Group. In Q1 to Q3 of 2025, we sold 320,800 tons of various products to our customers, which is 1% down compared to the year before.
A look at the three divisions indicates that the metal division compared to previous year is 4,800 tons lower, mostly due to slightly lower number of active pots in the recent months. In the casting division where we produced recycled cast alloys due to market development, especially in the automotive industry, we are down by 2,800 tonnes compared to last year. In the rolling division, in terms of volumes delivered to our customers, we saw an increase compared to last year by 5,100 tonnes, connected however to a change in mix. The transportation sector still is in a more difficult period, while we were able to grow the volumes for industrial applications and packaging products. Slide number seven gives you details to what I just mentioned.
We still benefit from our diversity in products because this stabilizes our sales volume, and as you can see here, especially automotive, aerospace, and other transport products are down compared to last year, and we have a significant increase in industrial applications, which is [12,000.6 tonnes] more than last year. Also, packaging products, foil stock is up 1,400 tonnes compared to last year. This brings us to slide number eight where you can see the development of order backlog, and there we have a slight decrease. Still, we are above 50,000 tonnes in order backlog, but due to a reduced order intake, especially from the transportation sector that I mentioned before, this is slightly down, and of course we can see also a negative impact from the U.S. tariffs, and this is reflected in the order backlog.
This brings us to business performance information, which Claudia Trampitsch will now present to you. Thank you very much.
Good morning. From my side as well, I will start with an outlook on the market price developments we had in the last quarter. When we look at page 10, you can see that the aluminium price increased over the quarter, over the year 2025 compared to last year. We see now a very good aluminium price level in Q3 2025 and also year-to-date. Year-to-date, you see around 7% increase of the aluminium price. When we move on to the U.S. Midwest premium, you can see here that as we also mentioned already last quarter, the premium moved up significantly due to the U.S. tariffs and apart from the impact of the U.S. tariffs, you now see every time the LME price of the aluminium goes up, it also is reflected in the development of the U.S. Midwest premium.
You can see also how much it is on the right side where we have up to 163% increase. Nevertheless, as for our Canadian company, we lost our exemption of the U.S. tariffs. We also lost there our windfall profits. When we move on to the alumina price, we see that compared to last year, the price development downwards as we headed the first two quarters now really stabilized itself. We are still at a very low level. At the moment, we are around, compared to the aluminium price which is higher than last year, we see a really good price level in relation to around 12% at the moment, which is very positive for the metal division. Although when you compare the year-to-date comparison to last year, the decrease is not that big because it's just 6%.
When you look at the quarter, you now can see that compared to last year where the trend went up due to really high aluminium prices, alumina prices. We now see the trend going down and that will also affect the results of the fourth quarter. When we move on to the revenues of AMAG Group, we already mentioned that the revenues this Q1 to Q3 2025 are 5% higher than for the respective period of last year. When we look at where does it come from, the main impact comes from the higher aluminium price. This is mainly also due to the metal segment. You can see the high increase here and also in the rolling segments. For the rolling segment, you see the vice versa effect then in the mature cost as well. Apart from that, everything was just mentioned before.
We have an impact on because of volumes, prices, and so on. Just to remember, the main impact came out of the high aluminium prices. When we now look at the EBITDA of AMAG Group, you see that the EBITDA for the first three quarters sums up to EUR 114.2 million, which is 23% lower than last year. When we have a deeper look at it, you see that although I mentioned before they had higher revenues due to the aluminium price. In the EBITDA you only have an impact of the higher aluminium price. Here, as I mentioned before, it's mainly out of the metal division because in the rolling division, the higher aluminium price also affects the production cost. When we see in the reconciliation why the EBITDA is lower than last year, there is a big impact out of price and premiums. This is what we mentioned before.
It's due to the effects in the rolling division, as Helmut mentioned before in the transport sector. Here we also see lower prices because of the weak economy. Also, the impact of the U.S. tariffs kicks in there. Another effect we can see is that the EBITDA is influenced by raw material costs, energy costs, and at the moment also in the raw material cost. Still, for the first three quarters there is an effect of higher alumina costs compared to last year and higher energy costs on the metal side because of the high LME prices. When we look at page 15, you have another one division, the EBITDA division wise, where we have in the metal division lower primary aluminium shipments as mentioned before and an impact of the higher aluminium price and already kicking in the attractive aluminium market price that we can see here.
As mentioned before, we are always influenced compared to 2024 to now being fully displaced to the U.S. tariffs. Compared to last year where we had an exemption for the casting division, there's nothing else to mention, as we mentioned before, the market environment which had an effect on the shipments and the prices in the casting division, but we were able to be flexible and react accordingly. The same is true for the rolling division, where we saw an increase in shipments and revenues, but due to change product mix affected by tariffs and price dynamics, we saw a pressure here, but we are able to stabilize the impact also if you compare it to the second quarter. We are more or less on the same level as in the second quarter, where you can see that even due to the impact of the higher U.S.
tariffs, we were able to stabilize our results in the rolling division. In general you can see that we showed our ability to adapt to the actual situation and set measures to stabilize our results. When you now look at the EBITDA of the third quarter 2025, which is at EUR 33.5 million, which is compared to last third quarter a minus out of 36%. I think it's worth mentioning that of course here you can see that it's lower than last year. Last year we had, as we told you before, totally different circumstances we were in. When we compare it to the second quarter 2025, so last quarter, we see that we are more or less at the same level, because there we had EUR 34.6 million.
This shows us that we set the right measures, showed our flexibility to move to other areas, other product mix and so on, to stabilize our results here and to make countermeasures to the increased price dynamics we see. For the net income after taxes, the result, the reduction is due to the low operating profit. There are no special effects in there. I can move on to the cash flow statement of AMAG Group for the first three quarters. On that side we can show that even though the cash flow as it is impacted by the lower EBITDA compared to last year, we show increase in operating cash flow because of our measures we do on the working capital side. We also see that there is a significantly lower investment cash flow.
These are measures we planned because due to our situation we are in and the circumstances, we decided to reduce our investment volumes and this also affected the cash flow in a positive way. We can show you that we had for the first 9 months a free cash flow of EUR 94.2 million, which is an increase of 134%. When we move on to slide 20, you can show you our net financial debt in million euro. There you can see that we reduced our net financial debt with 10% compared to year end. The ratio EBITDA to net debt rose from 2.1- 2.4. This is due to the lower EBITDA for the last 12 months and still a stable number and a solid number for AMAG. When we go on to the next balance sheet figures, our equity is as well stable.
We have 1% less than at the year end. There are some effects in it. Perhaps I want to point out that there is also a translation difference out of the U.S. dollar in there which we had due to the weaker U.S. dollar and our U.S. dollar business in Canada. This has effect there compared to last year. But [AP] that we are stable at the equity. We can show you also that on the cash side we have an increase. This is due to refinancing measures we did the last month. I mentioned everything for the division, so I will not tell you anything more on that side. You have all the details we can present on the following slides.
Finally, I just want to go on the ESG key figures as we always also want to tell you how we are performing on that side and show you that our focus still is as well on being positive and have positive development on our ESG figures. To point out just one, when you see how our scrap utilization rate develops, we are still on high level and even could increase it. This also is when you see that we had a shift in product mix and therefore a good sign that we could increase our utilization rate. We also could increase our utilization rate and we could decrease our passive energy consumption. Also, all our other numbers here that we show, let's see the tier RR or the compliance valuation is everything very positive that we can report.
Said that, I now hand over to Helmut again for some closing words and some information on the outlook.
Thank you very much. What we can clearly say with numerous discussions with our customers, the economic environment remains challenging. The global economic outlook and the influence of the American or U.S. tariff policy on our business remains subdued. This has especially negative influence on the development of the industry in the Eurozone. The earning performance of AMAG divisions were discussed in detail. We are of course influenced by these global developments. We can see and foresee for the last quarter that metal division and our smelter in Canada performs well. The rolling and casting activities in Ranshofen answer to these demands very flexibly. Cost efficiency is always in the center of our activities at the moment. The shifts in product mix I think will continue. We have to stay flexible because of this. Overall I can repeat what I mentioned already before.
We now expect EBITDA for the full year of 2025 at the upper limit of the communicated range. This was EUR 130 million. Again, I have to point out that valuation effects now in the last quarter may of course have a noticeable impact on this result. With this we are open for your questions and try to answer these as good as possible. Thank you very much.
We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. Anyone who has a question may press star and one at this time. The first question comes from Michael Marschallinger from Erste Group. Please go ahead.
Yes, good morning. Thanks for taking my questions. I have two. Firstly, on your guidance, you already said you achieved EUR 140 million for the first 9 months. You are guiding off EUR 130 million. This would still imply a rather steep drop in the fourth quarter of some EUR 16 million. This would be more than 50% in comparison to the first quarter. Could you maybe walk us through the emissions where you would expect such a big drop?
As we said, there is still, and we think, an unstable market. There might be again some shift in mix, but there are some chances and there are some risks remaining due to these numbers. Chances, of course, we are actively looking at all cost positions that we have and continue to improve our cost efficiency. There can be other risks, especially, I missed the English word now for trofalust, but for example, for contract risks for long-term contracts for the future that might not have a full cost positive result. Such things are in development, under development, especially in the last quarter when the future contracts are being negotiated with our customers. Changes in tariffs are more in the area of risk. Is the level of products sold to the customers still under negotiation?
There is some uncertainty connected to the volumes that we can sell and to the mix that we can sell.
Okay, sorry.
Yeah, go ahead.
This would be more risk that could materialize, you mean, if the business continues performing well, similar to the third quarter. Do you see maybe also some upside potential that's above this EUR 130.
Generally, you have to understand that the fourth quarter always more or less has 2 months because the defender in our case is always low result. This is planned like this because of longer stop of the factory for maintenance purposes. If you look at the last years or previous years, you will always see that these amounts is not that strong. Therefore, Q4 is always weaker than the month before.
Perhaps I can add, because you compared it with the first quarter, that our first quarter this year was not already.
Sorry.
With the third quarter, compared it with the first quarter, and in the first quarter you have already the full effect.
Sorry, I just got it wrong. Yeah, you know, we always do, and you can see it in our history, we always do a very thorough analysis of how our forecast will look like. I think we proved that we are very thorough and look good in detail in that. That's what we forecast. Therefore, we can say we see ourselves on the up end of our forecast bandwidth. Taking everything in account in this volatile environment, this is what we see at the moment where our year end will, how our year end will size will probably look like.
Okay, thank you. Lastly, quickly on the metal division, you said the shipments volumes were temporarily impacted. Would you expect some reversal of this effect in the fourth quarter?
When we say temporarily affected, that means that we have the pots that are producing the primary aluminium and there are some pots of them. When we have all of them working full setup, then we can produce more aluminium and then some of them are in the relining process or undergoing.
Maintenance.
Undergoing maintenance. There can be a period where there are less pots in production and we produce less metal. That was what was the case. When we look at our forecast, we see on the maintenance in relining process, as it is called, we are on track to be up to full capacity by year end, I would say.
Okay, understood. Thank you.
As a reminder, if you wish to register for a question, please press star and one on your telephone. The next question comes from Volker Bosse from Baader Bank. Please go ahead.
Hello, Volker Bosse, Baader Bank. Thanks for the presentation and all the insights provided. I would have three questions, please. First is on your outlook. You gave a subdued market outlook. However, you also successfully implemented several cost efficiency measures. My question would be what is to come in 2026 if the situation remains unchanged? What kind of measures do you have still in the back or planned already for 2026 to also be more efficient than next year, if top line remains as it is, so to say. Perhaps also any one-offs which you can also indicate for next year potentially. I mean just your thoughts on how you will react on the unfavorable situation would be the first out of three questions.
We do not expect a significantly improved market environment next year. We expect more or less that it will continue the way it is this year. It doesn't make sense to be too positive. Therefore, as we mentioned, we look at efficiency measures, which we of course also did in the past, but now, so to say, reinforced. This is what we can at the moment.
Can you be more specific what you have in mind? If you speak about general efficiency measures to come, in which areas, which directions you think, what can be done?
To be very honest, we look at every single cost position.
Okay, thanks. Second question would be on your CapEx plans. Could you remind me perhaps what is the CapEx for the full year? Given the unfavorable situation, what are the CapEx plans for next year, please?
We try, and this was the same this year, to stay below the depreciation level. This depreciation level is in the range of EUR 82 million or so.
As you know, we did a big investment program 10 years ago. From 2014- 2017, we increased capacity here. We had some big investments in Canada. There are also some modernizations going on there, not increasing capacity but necessary investments. Taking this all into account, we have a depreciation level which we will not exceed in the next years because we already had the big investments, and now we are staying at this state-of-the-art level we have.
Yes, I want to point out that we still have the most modern plant in the western world. We invested from recycling equipment, casting equipment all the way to rolling and finishing lines equipment. The last important or major investment that we did was surface treatment lines 1.5 years ago. We are now well set, well equipped, and this allows us to do this.
Thank you. The third question would be perhaps a brief one on current trading. If you can give indications about the volumes, about shipments in the fourth quarter, how does it look year-on-year? Thanks.
Maybe you can repeat the question.
Yeah, it's a question on current trading. The question is about the volumes, the shipments in Q4.
Where do you stand?
What do you expect in a year-on-year comparison? Thank you.
You're talking about the rolling division, right?
Yeah, volume in shipments.
We think that it will be in a similar range to last year, in my understanding.
Okay, thank you very much and all the best. Thank you.
Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Christoph Gabriel for any closing remarks.
Thank you very much to all of you.
you for joining this call. As always, I'm pleased to answer any further questions that may come. In that case, just give me a call or write me an email and I'm always there for you. Thank you very much and have a great Thursday. Goodbye.
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