Benteler: Stable despite industry headwinds

Research evidence excerpt

Benteler: Stable despite industry headwinds

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Benteler

Stable despite industry headwinds

Earnings Review

Key takeaways 18 May 2026

High Yield Credit• Benteler's 2026 outlook is in line with what the business accomplished through LTM

Austria

1Q2026: which is sales of c. EUR 8.1bn... Automotive Suppliers

• Adj. EBITDA margins >8% and FCF of EUR 150mn, after normalised customer pre-

payments. Stephanie Vincent, CFA Research Analyst

MLI (UK)• Leverage remains 0.5x above BENTLR's 1.5x target, through the cycle. +44 20 7996 1143

stephanie.a.vincent@bofa.com

Margin path stable with steel/tube stronger

Benteler’s margins were in-line with the outlook they aim to achieve for FYE26 (i.e. > fx= foreign exchange

8%, with LTM 1Q26 at 7.9%). FX had a negative impact on margins in the quarter. The

company demonstrated good cost controls/pricing as gross margins, selling expenses, BST: Benteler Steel Tube

admin costs and research/development outlays were all in-line with levels seen in 2025. SSNs= senior secured notes

Management noted S&P’s March light vehicle production/LVP outlook of -1.8% (this has

since been revised down, again, due to the prolonged U.S.-Iran conflict). For steel/tube

Benteler sees gradual growth in rig counts.

Leverage remains elevated vs. mid-term targets.

Benteler ended 1Q with reported net leverage around 2x and, we estimate, adjusted net

leverage around 2.9x/gross leverage at c. 3.6x (accounting for items like

pensions/factoring (our estimate)). These types of figures map to Ba type-metrics for an

auto supplier, using Moody’s methodology (our calculations).

Keep BENTLR €31 SSNs at Overweight

We appreciate the company’s demonstrated ability to generate modest cash flow

(prefinancing activities) despite a weak market.