Stonegate Capital Partners has updated its coverage on Aquafil S.p.A (BIT: ECNL), noting that the company’s second-quarter 2026 results support its margin and deleveraging reset despite a sharp increase in raw material and transportation costs during the period. The analysis comes as Aquafil navigates a challenging cost environment while maintaining operational efficiency.
Aquafil reported revenue of €135.7 million for the second quarter, a decline of 1.0% year-over-year, with volumes broadly stable. EBITDA decreased 2.5% to €20.7 million, yet the EBITDA margin held steady at 15.3% compared to 15.5% in the same quarter last year. Stonegate highlights that the modest EBITDA decline was primarily due 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 cost increase in Q2 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. The NFP/LTM EBITDA ratio improved to 2.64x from 2.89x, underscoring the company’s continued focus on deleveraging. Stonegate notes that this balance-sheet progress is a meaningful part of the investment thesis, as it provides additional flexibility heading into 2027. Management continues to prioritize deleveraging, and further progress could eventually reopen capacity for higher capital expenditures or external growth.
One of the key takeaways from Stonegate’s update is that Aquafil has maintained its improved margin profile despite the input-cost increases. The 1H26 EBITDA margin expanded to 15.0% from 13.6% in the prior-year period. Management indicated that the normal pricing lag is approximately three months, with key North American customers incorporating higher raw-material pricing starting in August, and additional recovery expected into the fourth quarter.
However, Stonegate points out that the main remaining execution requirement for 2026 is now volume rather than margin recovery. First-grade volumes increased only 0.3% in the first half of 2026, versus management’s approximately 5% full-year objective. This implies a meaningful acceleration in the second half is required, even as management continues to reaffirm its annual goals. Europe is described as the principal area of demand uncertainty.
Stonegate’s update reflects a view that Aquafil’s lower fixed cost base and operating efficiencies are supporting margins even before a broader demand recovery. The improving balance sheet adds to the company’s flexibility, positioning it well for future opportunities. The full announcement, including downloadable images and bios, can be viewed here.
