Envipco shares fall on weak earnings outlook

Envipco shares declined sharply on Friday after the company lowered its full-year revenue and profit guidance, citing operational setbacks and weaker-than-anticipated demand in key markets.

The Amsterdam-based recycling firm, which specializes in beverage container collection and processing, said it now expects revenue between €200 million and €220 million for the year, down from its prior forecast of €240 million to €260 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) are projected at €15 million to €20 million, compared with the previous range of €25 million to €30 million.

Envipco attributed the downgrade to delays in contract renewals, operational inefficiencies in its processing facilities, and softer demand for recycled materials. The company also noted that regulatory changes in some European markets had impacted its cost structure and revenue streams.

Shares in Envipco fell as much as 15% in early trading, extending losses from Thursday’s 8% decline following the guidance update. The stock has now erased roughly 30% of its value over the past month, underperforming broader European small-cap benchmarks.

Analysts at Jefferies maintained a Hold rating on the stock but reduced their price target to €1.20 from €1.50, citing heightened execution risks. "The revised guidance reflects a more challenging near-term environment," the firm said in a note. "While the long-term outlook for recycling remains intact, execution at Envipco will be critical to restoring investor confidence."

Envipco’s management is scheduled to hold a conference call with investors next week to discuss the revised outlook and outline measures to address the operational challenges. The company did not provide an updated outlook for 2025.

The stock’s decline comes amid broader concerns over profitability in the European recycling sector, where firms face margin pressures from rising energy costs and competitive pricing in secondary raw material markets.