Aquafil SpA’s first-half 2026 earnings met management expectations as the recycled nylon producer reported stable volumes and improved margins, though its shares slipped 0.73% to €1.37 on Thursday.
The Italy-based company, listed on the Borsa Italiana, said its ECONYL brand maintained steady production volumes compared with the prior-year period, with margins expanding as the recycled material gained a larger share of total revenue. Management confirmed full-year 2026 targets and margin recovery plans for the second half, despite ongoing cost pressures.
Raw material input costs remained elevated, rising by multiple millions of euros in the first half due to petrochemical and chemical price increases linked to disruptions in the Middle East and Gulf regions. Aquafil noted that pricing adjustments, which typically lag by three months for most of its business, have been partially offsetting these costs. The nylon textile filament segment operates on a six-month lag due to seasonal fashion contracting cycles, delaying full pass-through of higher prices.
Geographic performance remained uneven. Europe’s carpet yarn market stayed weak, pressured by the Russia-Ukraine war and Middle East instability, while textile yarn volumes grew modestly. North America showed resilience, with volumes rising in both textile and carpet yarn segments as customers accepted price increases more readily than in Europe or Japan. Asia Pacific demand for carpet yarns trended positive.
Aquafil reiterated plans to cut costs by an additional €8 million to €10 million annually in 2026 and 2027, excluding inflation, as part of its margin recovery strategy. The company’s free cash flow yield stood at 19%, with a current ratio of 1.81 and a debt-to-equity ratio of 2.66. Shares, which trade between €1.21 and €2.14 over the past 52 weeks, closed at €1.37, down from €1.38 the prior session.
