Aquafil Group (ECNL.MI) reported second-quarter 2026 results that continued to support its margin and deleveraging reset, even as raw material and transportation costs surged during the period, according to an update from Stonegate Capital Partners. Revenue declined 1.0% year-over-year to €135.7 million, with volumes broadly stable, while EBITDA fell 2.5% to €20.7 million. The EBITDA margin held at 15.3% versus 15.5% in the same quarter last year, reflecting a timing mismatch between higher input costs and contractual price recovery rather than a deterioration in underlying cost performance. Management indicated that the majority of the Q2 cost increase is being recovered through Q3 pricing, with additional recovery expected in the fourth quarter.
For the first half of 2026, net financial position (NFP) improved to €196.9 million from €209.5 million at year-end 2025. Stonegate noted that the quarter reinforces that Aquafil's lower fixed cost base and operating efficiencies are supporting margins even before a broader demand recovery. The improving balance sheet provides additional flexibility heading into 2027.
Key takeaways from the update include Aquafil's ability to maintain its improved margin profile despite the substantial Q2 input-cost increase. The EBITDA margin for 1H26 expanded to 15.0% from 13.6% in the prior year period. Management indicated the normal pricing lag is approximately three months, with key North American customers incorporating higher raw-material pricing beginning in August and additional recovery expected into the fourth quarter.
Balance-sheet progress remains a meaningful part of the investment thesis, with NFP declining to €196.9 million and NFP/LTM EBITDA improving to 2.64x from 2.89x. Management continues to prioritize deleveraging, while indicating that further progress could eventually reopen capacity for higher capital expenditures or external growth.
The main remaining 2026 execution requirement is now volume rather than margin recovery. First-grade volumes increased only 0.3% in 1H26 versus management's approximately 5% full-year objective, implying a meaningful acceleration in the second half is required. Management continues to reaffirm its annual goals and describes Europe as the principal area of demand uncertainty.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), provides a full spectrum of investment banking, equity research, and capital raising for public and private companies.
