Standard Profil - comment

Although Standard Profil has improved margins and delivered higher reported EBITDA, the overall numbers remain weak. Revenue fell by 10% as the conflict in the Middle East continued to disrupt commodity and energy prices and supply chains. Margins benefited from cost-saving measures, lifting EBITDA versus the prior year, but absolute profitability remains very depressed. The company has begun negotiations with customers to recover higher commodity costs, which are expected to persist into the coming quarters.

More concerning is the 17% decline in the order book to €2.5bn, driven by revisions to production plans, delays to new platform launches and weaker order intake. Given the limited liquidity in the bonds, this will have minimal impact but should be quoted lower.