Recticel S.A (RECT) | News Based Sentiment Analysis

• On September 3, 2025, Recticel reported a 12.3% increase in sales for the first half of the year, reaching EUR 335.2 million compared to EUR 298.6 million in 2024; however, this growth didn't translate to profitability, resulting in a net loss of EUR 0.3 million versus a net income of EUR 6.6 million in the same period last year. This highlights a key challenge: converting strong sales into earnings.
• The EUR 0.3 million net loss was significantly impacted by an EUR 11.5 million write-off related to a vendor loan for Ascorium, its automotive interiors business, reflecting ongoing weakness in the global automotive market. This write-off led to a loss per share of EUR 0.19, a sharp contrast to the EUR 0.082 per share profit reported in the first half of 2024, underscoring the pressure from the automotive sector.
• Following the first-half results, Recticel’s share capital increased on August 29, 2025, after the exercise of 6,000 subscription rights from a warrant plan initiated on June 28, 2019. These 6,000 new ordinary shares began trading on Euronext Brussels on September 2, 2025, bringing the total number of shares with voting rights to 56,686,920.
• Despite the challenges, Recticel reaffirmed its full-year 2025 outlook on September 3, 2025, anticipating an Adjusted EBITDA of approximately EUR 55 million, representing a 10% year-over-year growth from EUR 49.6 million in 2024. This positive outlook suggests confidence in future performance despite current headwinds.
• Berenberg cut its price target for Recticel to EUR 13.50 on September 3, 2025, while maintaining a “buy” rating, as higher sales didn’t translate into improved margins, with the adjusted EBITDA margin slipping to 8.2%. This adjustment reflects analyst concerns about profitability even with strong sales growth.
• As of September 12, 2025, Recticel S.A. (Euronext:RECT) is in a falling trend channel, indicating increasing investor pessimism, with no support in the price chart and resistance at approximately 9.50 euro. The Relative Strength Index (RSI) is below 30, signaling strong negative short-term momentum.

The Investment Story: September was a mixed month for Recticel, with strong sales figures overshadowed by profitability concerns and a negative shift in investor sentiment. The company is balancing current challenges in the automotive sector with long-term investments in growth and sustainability.

What It Means for Investors: The combination of robust sales and declining profits creates a complex investment picture. While the reaffirmed EBITDA outlook and expansion plans offer potential, investors should closely monitor margin performance and the impact of the automotive market on Ascorium.

Looking Ahead: Investors should watch for updates on the Tennessee and Wevelgem facilities, as well as any further developments impacting the automotive market. The stock's technical indicators suggest continued downward pressure in the short term.

The Bottom Line: Recticel presents a nuanced investment opportunity with solid core performance offset by automotive sector risks. The company’s strategic investments and positive outlook offer potential for long-term value, but careful monitoring of profitability and market conditions is crucial.