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Stonegate Capital Partners Updates Coverage on Aquafil Group (ECNL) Q425

By: Newsfile

Dallas, Texas--(Newsfile Corp. - March 13, 2026) - Aquafil Group (MI: ECNL): Stonegate Capital Partners updates coverage on Aquafil Group (MI: ECNL). Aquafil's FY25 results were better than the headline revenue decline suggests, as the year was defined more by mix, margin, and operating discipline than by top-line growth. Revenue fell 3.9% to 520.8M, largely reflecting lower raw material-linked selling prices. Volumes increased 4.4% on the year, leading to EBITDA increasing 16.1% to 72.4M representing EBITDA margin of 13.9%. In our view, the key takeaway is that Aquafil is showing early signs of a cleaner earnings profile, supported by resilient North America trends, continued Engineering Plastics growth, ECONYL® exceeding 60% of fiber revenues, and early savings from the 17M cost rationalization program. At the same time, the balance sheet improved, with net financial position at 209.5M and leverage declining to 2.89x, suggesting management's focus on cost control, mix, and debt reduction is beginning to translate into more durable operating leverage heading into 2026. 

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Key Takeaways:

  • FY25 revenue fell 3.9% to 520.8M, but volumes rose 4.4% and EBITDA increased 16.1% to 72.4M, suggesting the story is shifting from price pressure to mix improvement, cost discipline, and cleaner margin conversion.
  • Guidance calls for ~5% volume growth, EBITDA of 79M-83M, and further deleveraging, supported by carryover from the 17M cost program, better mix, cash discipline, and sourcing changes -giving investors a more credible path to earnings growth even in a volatile input environment.
  • Leverage improved to 2.89x, net financial position fell to 209.5M, and ECONYL® exceeded 60% of fiber revenues, which together suggest a more durable model with improving strategic mix, better margin resilience, and more flexibility heading into 2026.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/288427

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