S&P upgrades Befesa to BB+ and Befesa stock gains 2.03 percent

Published on 10/07/2026 at 13:38 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

S&P sees EUR 265.0 million adjusted EBITDA in 2026, up from EUR 237.0 million. Befesa stock costs EUR 36.15 on October 7, 2026 after EUR 35.43.

Architekturrender eines modernen Metallrecycling-Komplexes mit Solaranlage bei Abenddämmerung — Befesa S.A. plant moderne Recyclinganlagen mit Solarstrom und nachhaltiger Metalltechnik, ISIN LU1704650164, Illustration mit AI erstellt.

Befesa (LU1704650164) traded at EUR 36.15 at Lang & Schwarz on October 7, 2026 at 1:33 p.m. CEST, up 2.03 percent from the prior close of EUR 35.43. The latest company catalyst is a credit upgrade: on September 29, 2026, S&P Global Ratings raised Befesa's long-term issuer rating from BB to BB+, with a stable outlook.

Rating upgrade reflects lower leverage

The rating action also covered Befesa's EUR 650.0 million senior secured term loan and EUR 100.0 million revolving credit facility, both raised from BB to BB+. The Financial Times reported that the upgrade followed stronger operating performance, deleveraging and completed growth projects.

For investors, the important change is financial flexibility rather than the rating label alone. S&P expects Befesa's adjusted EBITDA to reach EUR 265.0 million in 2026, compared with EUR 237.0 million in 2025, a EUR 28.0 million or 11.81 percent increase. The projection is an estimate, not reported company earnings.

Cash flow outlook meets zinc risk

S&P expects free operating cash flow of EUR 97.0 million in 2026 and EBITDA of at least EUR 260.0 million under its base case. The rating agency also identifies a downside scenario in which adjusted debt to EBITDA rises above 3.00 times if EBITDA falls to EUR 215.0 million or lower, potentially following weaker steel demand or a material drop in zinc prices.

The balance between those figures matters because Befesa's outlook depends on recycling volumes, zinc prices and the ramp-up of growth projects. S&P expects higher European electric arc furnace capacity to support demand, while its downside case puts a concrete floor under the risk discussion.

Next results date is October 29

Befesa's next quarterly statement and conference call are scheduled for October 29, 2026, according to wallstreetONLINE. That report will provide the next reported test of the deleveraging and cash flow case.

Stock gains 2.03 percent in trading

Befesa stock was trading at EUR 36.15 at Lang & Schwarz on October 7, 2026 at 1:33 p.m. CEST, plus 2.03 percent versus the Lang & Schwarz prior close of EUR 35.43 on October 6, 2026. The further course of trading is shown by the continuously updated real-time quote of Befesa stock.