Q2 2026 Nabaltec AG Earnings Call
Speaker #1: Good morning, everyone, and welcome to Nabaltec AG's Q2 2026 earnings call. My name is Maxi Friedau from Nuways, and I'll be moderating today's call.
Operator: Good morning everyone, and welcome to the Nabaltec AG's Q2 2026 earnings call. My name is Maxi Friederau for nuways AG, and I will be moderating today's call. We will begin with a presentation by the management, followed by a Q&A session. You can ask your question by clicking the raise hand icon. Once I grant you permission to speak, you will be able to ask your question live. I will briefly explain the procedure once the presentation is finished. With that, let's get started. Mr. Hegmann, the floor is yours.
Maxi Friederau: Good morning everyone, and welcome to the Nabaltec AG's Q2 2026 earnings call. My name is Maxi Friederau for nuways AG, and I will be moderating today's call. We will begin with a presentation by the management, followed by a Q&A session. You can ask your question by clicking the raise hand icon. Once I grant you permission to speak, you will be able to ask your question live. I will briefly explain the procedure once the presentation is finished. With that, let's get started. Mr. Hegmann, the floor is yours.
Speaker #1: We'll begin with a presentation by the management, followed by a Q&A session. You can ask your question by clicking the "Resend" icon. Once I grant you permission to speak, you will be able to ask your question live.
Speaker #1: I'll briefly explain the procedure once the presentation is finished. And with that, let's get started. Mr. Heckman, the floor is yours.
Speaker #2: Thank you, Maxi, for the introduction. I also welcome everybody in the audience on behalf of my colleague, Günther Spitzer. For the Q2 2026 earnings call, I just wanted to start with a brief introduction of Nabaltec for the people who do not know us very well.
Johannes Heckmann: Thank you, Maxi, for the introduction. I also welcome everybody in the audience on behalf of my colleague, Julius Spitzer, for the Q2 2026 earnings call. I just wanted to start with a brief introductory of Nabaltec. For the people who do not know us very well, we are a classical medium-sized company in the chemical industry and one of the leading suppliers of environmentally friendly flame retardant fillers, especially Specialty Aluminas, based on our raw materials, aluminum hydroxide and aluminum oxide. Our headquarter is in the heart of Germany, in Schwandorf, in Bavaria. In addition to that, we have two production sites, operation sites in US, in Texas, Corpus Christi, and in Tennessee with Naprotec LLC. As well, we have a small distribution center with a sales organization in China to serve the Chinese market.
Johannes Heckmann: Thank you, Maxi, for the introduction. I also welcome everybody in the audience on behalf of my colleague, Julius Spitzer, for the Q2 2026 earnings call. I just wanted to start with a brief introductory of Nabaltec. For the people who do not know us very well, we are a classical medium-sized company in the chemical industry and one of the leading suppliers of environmentally friendly flame retardant fillers, especially Specialty Aluminas, based on our raw materials, aluminum hydroxide and aluminum oxide. Our headquarter is in the heart of Germany, in Schwandorf, in Bavaria. In addition to that, we have two production sites, operation sites in US, in Texas, Corpus Christi, and in Tennessee with Naprotec LLC. As well, we have a small distribution center with a sales organization in China to serve the Chinese market.
Speaker #2: We are a classic medium-sized company in the chemical industry, and one of the leading suppliers of environmentally friendly flame-retardant fillers, especially alumina. Based on our raw materials, aluminum hydroxide and aluminum oxide, our headquarters is in the heart of Germany, in Schwandorf, in Bavaria.
Speaker #2: In addition to that, we have two production sites—operation sites in the U.S.: one in Texas, Corpus Christi, and one in Tennessee, in Bismarck. As well, we have a small distribution center with a sales organization in China to serve the Chinese market.
Speaker #2: In the 2025 financials here, you can see that we generated roughly, almost €200 million in revenue at an EBIT of €15.2 million and a margin of 7.7%.
Johannes Heckmann: In the 2025 financials here, you can see that we generated roughly almost EUR 200 million in revenue at an EBIT of EUR 15.2 million and a margin of 70.7%. We have roughly 500 employees around the world and are active around the globe with a high export ratio of 76.7%. Our sales departments have support from our distribution partners, to supply our worldwide customers. We are operating, as you can see, since a long time, since 1937, out of Schwandorf. Coming now a little bit closer to our product segments, I want to explain in brief. I am not going into the figures itself, but more what the drivers are. As you can see, we have the Functional Fillers with the product ranges of ground hydroxides up to boehmites.
Johannes Heckmann: In the 2025 financials here, you can see that we generated roughly almost EUR 200 million in revenue at an EBIT of EUR 15.2 million and a margin of 70.7%. We have roughly 500 employees around the world and are active around the globe with a high export ratio of 76.7%. Our sales departments have support from our distribution partners, to supply our worldwide customers. We are operating, as you can see, since a long time, since 1937, out of Schwandorf. Coming now a little bit closer to our product segments, I want to explain in brief. I am not going into the figures itself, but more what the drivers are. As you can see, we have the Functional Fillers with the product ranges of ground hydroxides up to boehmites.
Speaker #2: We have roughly 200,500 employees around the world and are active globally, with a highly expert ratio of 76.7%. Our sales departments have support from our distribution partners to supply our worldwide customers.
Speaker #2: We have been operating, as you can see, for a long time—since 1937—out of Schwandorf. Now, coming a little bit closer to our product segments, I want to explain them briefly.
Speaker #2: I'm not going into the figures themselves, but more into what the drivers are. As you can see, we have the functional fillers with the product ranges of ground hydroxides up to bromides.
Johannes Heckmann: Our most important momentarily growth drivers are the viscosity-optimized hydroxides, I will explain this a little bit later on, and the fine hydroxides, as well as an opportunistic market, the boehmites. On the other side, we see our aluminum oxides, reactive aluminas and ceramic bodies. We see here a recovery in the reactive and aluminum oxide materials, which are mainly needed in the refractor industry, which I also explain a little bit later onwards. As you can see, our major raw materials are feedstock from aluminum hydroxide and aluminum oxide, which is a global resource around the world, and is a good which can be bought from world markets. Coming now a little bit more into detail to the market applications. As you can see, for the Functional Fillers, we have a broad variety of application fields and examples here.
Johannes Heckmann: Our most important momentarily growth drivers are the viscosity-optimized hydroxides, I will explain this a little bit later on, and the fine hydroxides, as well as an opportunistic market, the boehmites. On the other side, we see our aluminum oxides, reactive aluminas and ceramic bodies. We see here a recovery in the reactive and aluminum oxide materials, which are mainly needed in the refractor industry, which I also explain a little bit later onwards. As you can see, our major raw materials are feedstock from aluminum hydroxide and aluminum oxide, which is a global resource around the world, and is a good which can be bought from world markets. Coming now a little bit more into detail to the market applications. As you can see, for the Functional Fillers, we have a broad variety of application fields and examples here.
Speaker #2: Our most important, momentary growth drivers are the visco-optimized hydrates—I will explain this a little bit later on—and the fine hydrates, as well as, in an opportunistic market, the bromides.
Speaker #2: On the other side, we see our oxides, reactive aluminas, and SERM bodies. We see here a recovery in the reactive and the oxide materials, which are mainly needed in the refractory industry.
Speaker #2: Which are also explained a little bit later onwards. As you can see, our major raw materials are feedstock from hydroxide and aluminum oxide, which is a global resource around the world, and is a good which can be bought from world markets.
Speaker #2: Coming now a little bit more into detail on the market applications, as you can see, for the functional fillers we have a broad variety of application fields and examples here.
Speaker #2: Our major market is the cable and wire market, with about 56% in 2025. Here especially, this market is highly leveraged by cables for data communication and energy.
Johannes Heckmann: Our major market is the cable and wire market with about 56% in 2025. Here, especially this market is highly leveraged by the cables for data communication and energy increasing, which gains more and more important. Point 4 is about our communication cables, especially as you can see in the future with a ramp-up of all the networking infrastructure, we can see in Europe as well as in the United States and around the globe. In the battery market, which is a smaller segment with 12%, here we serve our visco-optimized product as well our boehmites. The visco-optimized products gain more and more momentum due to the thermal management, which is needed. This is very important for us, especially in Europe as a new development.
Johannes Heckmann: Our major market is the cable and wire market with about 56% in 2025. Here, especially this market is highly leveraged by the cables for data communication and energy increasing, which gains more and more important. Point 4 is about our communication cables, especially as you can see in the future with a ramp-up of all the networking infrastructure, we can see in Europe as well as in the United States and around the globe. In the battery market, which is a smaller segment with 12%, here we serve our visco-optimized product as well our boehmites. The visco-optimized products gain more and more momentum due to the thermal management, which is needed. This is very important for us, especially in Europe as a new development.
Speaker #2: Increasingly, what gets more and more important is the data communication cables, especially as you can see in the future with the ramp-up of all the networking infrastructure.
Speaker #2: We can see this in Europe as well as in the United States and around the globe. In the battery market, which is a smaller segment with 12% here, we serve our visco-optimized products as well as our bromides.
Speaker #2: The visco-optimized products gain more and more momentum due to the thermal management, which is needed, and this is very important for us, especially in Europe with the new development.
Speaker #2: The bromide has, as I said, recovered slightly, but is still under pressure from the worldwide competitive market, especially out of China.
Johannes Heckmann: The boehmite has, as I said, a little bit, has recovered slightly, but is still under pressure from the worldwide competitive market, especially out of China. If you come now to the next segment, this is Specialty Aluminas. Here you can see the major driver is still the refractor industry, followed by the technical ceramics, which is 25%, and electronic components with 7%, which can be summarized also as technical ceramics. Here, especially the refractor industry, we can see a slight recovery in Europe. It was a fairly complicated and depressed market last year, but as you can see later on in our financials, we see a slight upswing. I wouldn't talk about a total recovery. We are very cautious, but it's a positive momentum.
Johannes Heckmann: The boehmite has, as I said, a little bit, has recovered slightly, but is still under pressure from the worldwide competitive market, especially out of China. If you come now to the next segment, this is Specialty Aluminas. Here you can see the major driver is still the refractor industry, followed by the technical ceramics, which is 25%, and electronic components with 7%, which can be summarized also as technical ceramics. Here, especially the refractor industry, we can see a slight recovery in Europe. It was a fairly complicated and depressed market last year, but as you can see later on in our financials, we see a slight upswing. I wouldn't talk about a total recovery. We are very cautious, but it's a positive momentum.
Speaker #2: If we come now to the next segment, this is especially aluminas. Here you can see the major driver is still the refractory industry, followed by technical ceramics, which is at 25%, and electro and electronic components, with 7%, which can also be summarized as technical ceramics.
Speaker #2: Here, especially in the refractory industry, we can see a slight recovery. In Europe, it was a fairly complicated and depressed market last year, but as you can see later on in our financials, we are seeing a slight upswing.
Speaker #2: I wouldn't talk about a total recovery. We are very cautious, but it's a positive momentum. Everything else is smaller markets, but also here I want to emphasize that we have a broad variety of applications and are not just leveraged on a cluster of one or two applications.
Johannes Heckmann: Everything else are smaller markets, but also here I want to emphasize that we have a broad variety of applications and are not just leveraged on a cluster of one or two applications. Coming now a little bit more into depth on the financial highlights for the Q2, which looks fairly well and goes into the right direction. Revenues, as you can see in the Q2, amounted for EUR 55.3 million, which is an increase of almost 7% compared to the previous year's figures. The sales volumes rose here by 8.3%, which we are very proud of, and the average price was slightly lower in the Q2 compared to the previous year. So we have a slight trade-off in the pricing. The operating result, EBIT decreased by 19.3% to EUR 3.8 million. EBIT margin as well was at 7.2% in the Q2, after 9.3% in the last year.
Johannes Heckmann: Everything else are smaller markets, but also here I want to emphasize that we have a broad variety of applications and are not just leveraged on a cluster of one or two applications. Coming now a little bit more into depth on the financial highlights for the Q2, which looks fairly well and goes into the right direction. Revenues, as you can see in the Q2, amounted for EUR 55.3 million, which is an increase of almost 7% compared to the previous year's figures. The sales volumes rose here by 8.3%, which we are very proud of, and the average price was slightly lower in the Q2 compared to the previous year. So we have a slight trade-off in the pricing. The operating result, EBIT decreased by 19.3% to EUR 3.8 million. EBIT margin as well was at 7.2% in the Q2, after 9.3% in the last year.
Speaker #2: Coming now a little bit more into depth on the financial highlights for the second quarter, which look fairly good and are moving in the right direction.
Speaker #2: Revenues, as you can see in the second quarter, amounted to €55.3 million, which is an increase of almost 7% compared to the previous year's figures.
Speaker #2: The sales volume rose here by 8.3%, which we are very proud of, and the average price was slightly lower in the second quarter compared to the previous year.
Speaker #2: So we have a slight trade-off in the pricing. The operating result, EBIT, decreased by 19.3% to €3.8 million. The EBIT margin as well was at 7.2% in the second quarter, after 9.3% in the last year.
Speaker #2: Main reasons for this drop, and we saw this already in the last year, was in the last quarter was EBIT margin decrease was due to higher energy costs plus of 1.3 million, and the higher depreciation in amortization costs due to the more and more activated investments we have made in the last 10 months.
Johannes Heckmann: Main reasons for this drop, and we saw this already in the last quarter, was EBIT margin decrease was due to higher energy costs, a plus of EUR 1.3 million, and the higher depreciation in amortization costs due to the more and more activated investments we have made in the last 10 months. So the earnings per share amounted at EUR 0.29 compared to EUR 0.35 in the Q2 of 2025. If we look shortly about on our liabilities to banks, these amount at EUR 90.5 million, plus this includes the lease liabilities, according IFRS 16 of EUR 0.43 million, which were offset by cash and cash equivalents of EUR 19.9 million as of the reporting date of 30 June 2026. This brings the group's net debt to a volume of EUR 3.9 million at the end. Coming now to the financials on revenue.
Johannes Heckmann: Main reasons for this drop, and we saw this already in the last quarter, was EBIT margin decrease was due to higher energy costs, a plus of EUR 1.3 million, and the higher depreciation in amortization costs due to the more and more activated investments we have made in the last 10 months. So the earnings per share amounted at EUR 0.29 compared to EUR 0.35 in the Q2 of 2025. If we look shortly about on our liabilities to banks, these amount at EUR 90.5 million, plus this includes the lease liabilities, according IFRS 16 of EUR 0.43 million, which were offset by cash and cash equivalents of EUR 19.9 million as of the reporting date of 30 June 2026. This brings the group's net debt to a volume of EUR 3.9 million at the end. Coming now to the financials on revenue.
Speaker #2: So the the earnings per share amounted and 0.29 euros compared to 0.35 in the second quarter of 2025. If we look shortly about on our liabilities to banks, these amount at 90.5 million, plus this includes the lease liabilities according IFRS 16 of 0.43 million, which were offset by cash and cash equivalents of 19.9 19.9 million euros.
Speaker #2: As of the reporting date of June 30th, 2026, this brings the group's net debt to a volume of €3.9 million at the end. Coming now to the financials on revenue.
Speaker #2: If we look at the functional fillers itself, the revenue here increased by 6.7% in the second quarter compared to the previous year. The sales volumes were high at 8.2 million, 8.2%, sorry, while the average pricing slightly declined by 1.4 million percent in comparison to the last year.
Johannes Heckmann: If you look at the Functional Fillers itself, the revenue here increased by 6.7% in Q2 compared to the previous year. The sales volumes were high at 8.2%, while the average pricing slightly declined by 1.4% in comparison to the last year. Demand in Q2 was slightly above the levels recorded in both the corresponding quarter of the previous year as well as Q1 2026. We see the trend in the right direction. The positive development was mainly driven by the viscosity-optimized hydroxides product areas, where the revenues increased by astonishing 45.9% year-on-year in Q2. boehmites revenues also grew in a double-digit number up to 23% compared to the same period of last year. Here we have to see the base effect. We were quite low in comparison to last year.
Johannes Heckmann: If you look at the Functional Fillers itself, the revenue here increased by 6.7% in Q2 compared to the previous year. The sales volumes were high at 8.2%, while the average pricing slightly declined by 1.4% in comparison to the last year. Demand in Q2 was slightly above the levels recorded in both the corresponding quarter of the previous year as well as Q1 2026. We see the trend in the right direction. The positive development was mainly driven by the viscosity-optimized hydroxides product areas, where the revenues increased by astonishing 45.9% year-on-year in Q2. boehmites revenues also grew in a double-digit number up to 23% compared to the same period of last year. Here we have to see the base effect. We were quite low in comparison to last year.
Speaker #2: Demand in the second quarter was slightly above the levels recorded in both the corresponding quarter of the previous year, as well as the first quarter of 2026.
Speaker #2: So we see the trend in the right direction. The positive development was mainly driven by the visco-optimized hydroxide product areas, where revenues increased by an astonishing 45.9% year on year.
Speaker #2: In the second quarter, bromides revenues also grew by a double-digit number, up to 23% compared to the same period last year, but here we have to consider the base effect.
Speaker #2: We were quite low in comparison to last year. The revenues in the fine hydroxide product area remained largely unchanged compared to the prior year.
Johannes Heckmann: The revenues in the fine hydroxides product area remained largely unchanged compared to the prior year. If you look at the EBIT itself, as I said before, it amounted at EUR 3.2 million in the Functional Fillers product segment. It was EUR 1.4 million below the prior year's level. The decline was majorly attributable to the higher energy costs and increased depreciation and amortization effects. Depreciation and amortization rose from EUR 2.2 million to EUR 2.7 million, following the capitalization of several investment projects, as I mentioned. Majorly, the visco-optimized projects kicks in, but also or especially the boehmites project, which was activated by the beginning of this year. The capital expenditures, as you can see in this segment, amounted at EUR 5.3 million in Q2 2026.
Johannes Heckmann: The revenues in the fine hydroxides product area remained largely unchanged compared to the prior year. If you look at the EBIT itself, as I said before, it amounted at EUR 3.2 million in the Functional Fillers product segment. It was EUR 1.4 million below the prior year's level. The decline was majorly attributable to the higher energy costs and increased depreciation and amortization effects. Depreciation and amortization rose from EUR 2.2 million to EUR 2.7 million, following the capitalization of several investment projects, as I mentioned. Majorly, the visco-optimized projects kicks in, but also or especially the boehmites project, which was activated by the beginning of this year. The capital expenditures, as you can see in this segment, amounted at EUR 5.3 million in Q2 2026.
Speaker #2: If we look at the EBIT itself, as I said before, it amounted to €3.2 million. In the functional filler product segment, it was €1.4 million below the prior year's level.
Speaker #2: The decline was mainly attributable to higher energy costs and increased depreciation and amortization effects. Depreciation and amortization rose from €2.2 million to €2.7 million following the capitalization of several investment projects.
Speaker #2: As I mentioned, mainly the visco-optimized projects kick in, but also, and especially, the bromide project which was activated at the beginning of this year.
Speaker #2: The capital expenditures, as you can see in this segment, amounted to €5.3 million. In the second quarter of '26, the main investments related to the expansion of production capacity for the visco-optimized hydroxide and the installation of gas-fired boilers for steam generation, which we need to install to compensate for the lack of steam we have with the triphonics of our neighboring waste incinerator plant. This is mainly done as a backup system.
Johannes Heckmann: The main investments related to the expansion of production capacity for the viscosity-optimized hydroxides and the installation of a gas-fired boilers for steam generation, which we need to install to compensate the lack of steam where we have with the Triphönix of our neighbor, our waste incinerator plant, which is majorly done as a backup system. If you go now to the Specialty Aluminas, here are the figures you can see in Q2. The revenue in the Specialty Aluminas product segment increased also 7.4% compared to the prior year's period, which, as I said, intends to be a slight recovery. If it is sustainable, we have to see for the next months. The sales volume rose here steadily by 8.4% on a year-to-year basis, while the average selling price was slightly below the level of last year. The ceramic bodies product area recovered revenue growth of 16.8% compared to the prior year.
Johannes Heckmann: The main investments related to the expansion of production capacity for the viscosity-optimized hydroxides and the installation of a gas-fired boilers for steam generation, which we need to install to compensate the lack of steam where we have with the Triphönix of our neighbor, our waste incinerator plant, which is majorly done as a backup system. If you go now to the Specialty Aluminas, here are the figures you can see in Q2. The revenue in the Specialty Aluminas product segment increased also 7.4% compared to the prior year's period, which, as I said, intends to be a slight recovery. If it is sustainable, we have to see for the next months. The sales volume rose here steadily by 8.4% on a year-to-year basis, while the average selling price was slightly below the level of last year. The ceramic bodies product area recovered revenue growth of 16.8% compared to the prior year.
Speaker #2: If we go now to the Luminas, here are the figures you can see in Q2. The revenue in the Luminas segment increased by 7.4% compared to the prior year's period, which as I said, tends to be a slight recovery.
Speaker #2: If it's sustainable, we have to see over the next few months. The sales volume here rose steadily by 8.4% on a year-to-year basis, while the average selling price was slightly below the level of last year.
Speaker #2: The Ceramic Body Product area recovered revenue growth of 16.8% compared to the prior year. This is also a highly value-added good. Driven by higher sales in the catalyst application for hydrogen, the oxides and the reactive aluminum products posted growth in the second quarter as well.
Johannes Heckmann: This is also a highly value-added good, driven by higher sales in the catalyst application for hydrogen technologies. In addition to the aluminum oxides and the reactive aluminas products are posted growth in Q2 as well. Following a negative EBIT, which was reported in Q1, the segment returned to profitability and generated an EBIT of EUR 0.6 million in Q2. You can see we have leveled off the bad side, the negative side, and going back to positive figures. This compares with EBIT of EUR 0.1 million in the prior year's quarter. Lower raw material costs in Q2 contributed positively to the earnings. We are also seeing signs of stabilization in this segment and remain cautiously optimistic. I talk from a slight recovery, and we hope that this development will continue in the H2 of this year.
Johannes Heckmann: This is also a highly value-added good, driven by higher sales in the catalyst application for hydrogen technologies. In addition to the aluminum oxides and the reactive aluminas products are posted growth in Q2 as well. Following a negative EBIT, which was reported in Q1, the segment returned to profitability and generated an EBIT of EUR 0.6 million in Q2. You can see we have leveled off the bad side, the negative side, and going back to positive figures. This compares with EBIT of EUR 0.1 million in the prior year's quarter. Lower raw material costs in Q2 contributed positively to the earnings. We are also seeing signs of stabilization in this segment and remain cautiously optimistic. I talk from a slight recovery, and we hope that this development will continue in the H2 of this year.
Speaker #2: Following a negative EBIT, which was reported in the first quarter, the segment returned to profitability and generated an EBIT of €0.6 million in the second quarter.
Speaker #2: So, you can see that we have leveled off the bad side, the negative side, and are going back to positive figures. This compares with EBIT of €0.1 million in the prior year's quarter.
Speaker #2: Lower raw material costs in the second quarter contributed positively to the earnings. We are also seeing signs of stabilization in this segment and remain cautiously optimistic. I talk from a slight recovery, and we hope for this development this year.
Speaker #2: If you look at the capital expenditures in the Specialty Alumina segment, it amounted to €0.4 million in the second quarter. This is leveling off now, as we have practically finished our major investments in retrofitting our kilns.
Johannes Heckmann: If you look at the capital expenditures in the Specialty Aluminas segment, it amounted for EUR 0.4 million in Q2. This is leveling off now as we have practically finished our major investments in retrofitting our kilns. There is nothing to be seen more. Now I would hand over to Günther, who is reporting you and giving you more explanations about our profit and loss statement for the last six months, 2026. Günther, it is yours.
Johannes Heckmann: If you look at the capital expenditures in the Specialty Aluminas segment, it amounted for EUR 0.4 million in Q2. This is leveling off now as we have practically finished our major investments in retrofitting our kilns. There is nothing to be seen more. Now I would hand over to Günther, who is reporting you and giving you more explanations about our profit and loss statement for the last six months, 2026. Günther, it is yours.
Speaker #2: So there is nothing more to be seen. Now I would like to hand over to Günther, who will report to you and give more explanations about our profit and loss statement for the last six months, 2026.
Speaker #2: Günther, it's yours.
Speaker #1: Thank you, Johannes. Let's continue with the profit and loss statement of the group for the first half of 2026. Revenue in the first six months of 2026 increased by 1.9% year on year to €108.6 million.
Günther Spitzer: Thank you, Johannes. Let us continue with the profit and loss statement of the group for H1 2026. Revenue in the first six months of 2026 increased by 1.9% year-on-year to EUR 108.6 million. Following a decline in revenue in Q1 2026, we are now on
Günther Spitzer: Thank you, Johannes. Let us continue with the profit and loss statement of the group for H1 2026. Revenue in the first six months of 2026 increased by 1.9% year-on-year to EUR 108.6 million. Following a decline in revenue in Q1 2026, we are now on
