Curated News
By: NewsRamp Editorial Staff
June 30, 2025
Aquafil's Profit Soars 17.8% as ECONYL Drives Sustainability Success
TLDR
- Aquafil Group's 15.5% EBITDA margin gain and ECONYL® dominance offer investors competitive advantage through superior profitability and market differentiation.
- Aquafil achieved higher margins through cost optimization, raw material savings, and product mix efficiency, with detailed financial metrics showing systematic improvement.
- Aquafil's ECONYL® expansion advances sustainability through recycled products, making tomorrow better by reducing environmental impact and promoting circular economy practices.
- Aquafil turned revenue decline into profit surge with 17.8% EBITDA growth, showcasing how sustainability can drive unexpected financial success.
Impact - Why it Matters
This news matters because Aquafil's strong financial performance demonstrates that sustainability-focused business models can deliver both environmental benefits and robust profitability. The company's success with ECONYL regenerated nylon shows how circular economy principles can create competitive advantages while reducing waste and resource consumption. For investors, Aquafil's improving margins and deleveraging progress signal a financially sound company in the growing sustainable materials sector. For consumers and industries, the expansion of ECONYL products means more accessible sustainable alternatives in textiles, fashion, and interior design, contributing to broader environmental goals without sacrificing quality or performance.
Summary
Stonegate Capital Partners has updated its coverage on Aquafil Group (ECNL.MI), highlighting the company's impressive second-quarter 2025 performance marked by strong profitability despite modest revenue declines. The Italian company achieved an EBITDA margin of 15.5%, significantly up from 12.3% in the same period last year, driven by lower raw material costs, efficiency initiatives, and a favorable product mix. The ECONYL® brand proved pivotal once again, representing 60.7% of fiber revenues and demonstrating management's successful execution of its long-term sustainability strategy.
Regionally, the U.S. BCF segment recorded double-digit growth while EMEA remained stable and APAC continued to underperform. Aquafil reported revenue of €140.5M, adjusted EBITDA of €21.3M, and adjusted EPS of €0.02 for the quarter, with first-half 2025 showing revenue of €281.2M (-2.4% YoY) but significantly improved EBITDA of €38.4M (+17.8% YoY) and net income of €2.2M versus a €6.1M loss in 1H24. The company also launched a major cost-optimization project in its U.S. carpet recycling operations, consolidating facilities to reduce labor and logistics costs with initial savings expected in the second half of 2025 and more substantial benefits in 2026 and beyond.
Management remains cautiously optimistic for the second half of 2025, expecting margin benefits from cost-reduction initiatives and stabilization in input costs. Despite regional headwinds in EMEA and APAC, Aquafil reaffirmed its focus on sustaining profitability improvements and capturing additional market share through its growing ECONYL® portfolio. Stonegate's valuation analysis using both DCF and EV/EBITDA methods suggests a valuation range between €3.92 and €5.41, reflecting the company's strong operational performance and strategic positioning in sustainable materials.
Source Statement
This curated news summary relied on content disributed by Reportable. Read the original source here, Aquafil's Profit Soars 17.8% as ECONYL Drives Sustainability Success
