Aquafil Group (ECNL.MI) reported second-quarter 2026 results that underscore the resilience of its improved margin profile and continued deleveraging, even as the company faced a sharp increase in raw material and transportation costs during the period. 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%, compared to 15.5% in the same quarter last year, and for the first half of 2026, the margin expanded to 15.0% from 13.6% in the prior-year period.
The modest EBITDA decline was attributed to a timing mismatch between higher input costs and contractual price recovery, rather than a reversal in underlying cost performance. Management indicated that the majority of the second-quarter cost increase is being recovered through third-quarter pricing, with additional recovery expected in the fourth quarter. The normal pricing lag is approximately three months, and key North American customers have begun incorporating higher raw-material pricing starting in August, with further adjustments anticipated in the fourth quarter.
Balance-sheet progress remains a central part of the investment thesis. Net financial position (NFP) improved to €196.9 million from €209.5 million at year-end 2025, and NFP to last twelve months (LTM) EBITDA improved to 2.64x from 2.89x. Management continues to prioritize deleveraging, and they indicated that further progress could eventually reopen capacity for higher capital expenditures or external growth opportunities.
The primary execution requirement for the remainder of 2026 is now volume recovery rather than margin improvement. First-grade volumes increased only 0.3% in the first half, which is well below management's approximately 5% full-year objective. This implies a meaningful acceleration in the second half of the year is necessary, even as management reaffirms its annual goals and identifies Europe as the principal area of demand uncertainty.
According to Stonegate Capital Partners, which updated coverage on Aquafil, the quarter reinforces that the company'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. “Aquafil’s 2Q26 results continued to support the margin and deleveraging reset despite the cost headwinds,” noted the research update.
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