Euroapi SAS

Euroapi reported a net loss of €141.5 million for the first half of 2026, compared with a loss of €28.5 million a year earlier, as the company absorbed heavy non-recurring charges tied to its Focus 27 restructuring plan. Net sales fell 13.5% year-over-year to €356.5 million, while core EBITDA dropped to €20.7 million, representing a 5.8% margin versus 9.6% in H1 2025. The bottom line was weighed down by €63.8 million in non-recurring items, including €42.5 million in employee-related expenses linked to a Frankfurt redundancy plan, and €92.6 million in depreciation and amortization that contained €33 million in impairments. The company swung to a net debt position of €37.9 million from a net cash position of €68.2 million at the end of 2025, though it retains substantial liquidity with a €451 million revolving credit facility that has been only lightly drawn. For the full year, Euroapi expects net sales to decline around 10% on a comparable basis and a core EBITDA margin of approximately 6% at constant perimeter, with a roughly €9 million adverse foreign-exchange impact from the Hungarian forint.

EUROAPI reported first-half 2026 net sales of €356.5 million, down 13.5% year-on-year as reported and 11.8% on a comparable basis, while Core EBITDA fell to €20.7 million from €39.5 million a year earlier. The company posted a net loss of €141.5 million, compared with a loss of €28.5 million in H1 2025, driven by €63.8 million in non-recurring costs tied to its FOCUS-27 transformation plan and a €63.0 million impairment charge. EUROAPI also announced the signing of a share purchase agreement to sell its Brindisi site to Huvepharma for an enterprise value of €5 million, with EUROAPI providing €60 million in transition support over two years. Despite a challenging environment, the company maintained its full-year net sales outlook but adjusted its Core EBITDA margin guidance to around 6%, citing a roughly €9 million adverse impact from the appreciation of the Hungarian Forint.

Euroapi's fair value estimate has been cut from €2.00 to about €1.48, a roughly 26% reduction, after analysts reset growth and margin assumptions. The revenue growth assumption moved from an increase of about 21.1% to a revenue decline of about 189.9%, while the profit margin was adjusted from roughly 171.7% to about 73.1%. The future price-to-earnings ratio was raised from 15.6 times to about 28.7 times, with the discount rate held steady at 6.47%. JPMorgan analyst Zain Ebrahim lowered the price target from €2.90 to €1.70, maintaining a Neutral rating, reflecting reduced conviction around execution and growth visibility.