AGFA Q3 2025 Financial Results

Agfa has released its third quarter results.  
Group performance: 
•    Top line decrease of 7.1% (-4.7% currency comparable): increase in Digital Printing & Chemicals not sufficiently offsetting impact from decline in medical film and from cloud transition in HealthCare IT
•    Despite good cost control, adjusted EBITDA decreased to 5 million euro, mainly due to the decline in Radiology Solutions – Acceleration and extension of savings programs
•    Positive free cash flow of 21 million euro in Q3 due to a 24 million euro improvement in working capital and a 38 million euro impact from the AgfaPhoto arbitration. 
•    The free cash flow over the first 9 months improved by 72 million euro compared to last year, driven by a 51 million euro improvement in working capital and 38 million euro related to the AgfaPhoto arbitration. This more than offset the drop in EBITDA
HealthCare IT: Agfa positioned to benefit from market transition to a SaaS business model
•    12 months rolling order intake increased by 5.8% to 163 million euro
•    Top line decreased by 13.0% (-8.7% currency comparable) to 50 million euro – recurring revenue grew by 0.6% (5.0% currency comparable)
•    Adjusted EBITDA decreased to 2.1 million euro
Digital Print & Chemicals: step up in revenue, profitability slightly up despite unfavourable market conditions
•    5.1% top line growth to 115 million euro, mainly driven by Specialty Films & Chemicals
•    Performances of Green Hydrogen Solutions and Digital Printing Solutions influenced by softer market conditions
•    Adjusted EBITDA up from 8.8 million euro to 9.0 million euro
Radiology Solutions: continued decline of the medical film markets, particularly in China
•    Revenue declined by almost 20%, heavily impacting profitability
•    Given the current market situation, additional restructuring efforts are defined

Pascal Juéry, President and CEO of the Agfa-Gevaert Group, commented “Our third quarter results reflect ongoing pressure in the medical film markets. We are therefore accelerating and extending our savings efforts. We remain confident in the strategic direction of our growth engines. HealthCare IT’s shift to the cloud significantly strengthens the company’s long-term positioning as a global leader in Enterprise IT, while as expected temporarily impacting revenue and profit. This strategic evolution is supported by strong customer satisfaction and the signing of several high-value contracts in 2025. In Digital Printing Solutions, we continue to build a robust portfolio of high-end and mid-range offerings. Although current market conditions are currently slow, especially in the USA, the company anticipates renewed demand as economic stability returns. The Green Hydrogen Solutions business delivered a solid third quarter. Growth in Western markets is currently moderate but the company is successfully expanding its footprint in Eastern regions. The inauguration of a new ZIRFON membrane production unit in September marks a significant milestone in our commitment to the clean energy transition.”

Acceleration and extension of restructuring plans
•    Agfa is accelerating and extending the plan to optimise the cost base of the traditional film activities. The current plan, which is expected to bring 50 million euro of savings, is being accelerated through faster implementation. An additional plan is being initiated that is expected to bring additional savings of 25 million euro related to manufacturing activities as well as go-to-market adjustments.
•    The company is implementing short-term measures across the Group to help mitigate the current results.
•    Agfa is working on an initiative to rightsize the overall Group organisation. Details of the plan will be communicated in due time.
•    Agfa is exploring the potential redevelopment of part of its site in Mortsel, Belgium. As a first step, Agfa has submitted a request to the Flemish government to start negotiations with a view to concluding a Brownfield Covenant. Such a covenant creates a formal framework in which all parties involved can work together on a supported and future-oriented redevelopment.
Third quarter
•    The accelerating decline in medical film substantially impacted Agfa’s top line performance. The HealthCare IT division is successfully transitioning to cloud-enabled Enterprise Imaging. As expected, this transition has a temporary effect on the division’s top and bottom line. Within the Digital Print & Chemicals division, the Green Hydrogen Solutions growth engine and the Specialty Films & Chemicals activities posted revenue growth, while Digital Printing Solutions saw the effects of the slow investment climate.
•    Mostly due to the decline in the Radiology Solutions division, the Group’s gross profit margin decreased to 27.1% of revenue.
•    Due to strict cost control, operating expenses decreased from 77 million euro in Q3 2024 to 73 million euro.
•    Adjusted EBITDA amounted to 5 million euro (2.0% of revenue). Profitability was mainly impacted by sales mix effects, the effects of the market decline for the medical film activities and by the situation on the raw material markets.
•    Adjustments and restructuring expenses resulted in a cost of 6 million euro, partly related to the program to optimise the cost base of the traditional film activities.
•    Compared to Q3 2024, net finance costs remained stable at 7 million euro. 
•    Income tax expenses amounted to 2 million euro, versus 7 million euro in Q3 2024.
•    The Agfa-Gevaert Group posted a net result of minus 19 million euro.
Financial position and cash flow
•    Working capital evolved from 30% in Q2 2025 to 29%. In absolute numbers, working capital decreased from 341 million euro to 324 million euro.
•    The Group booked a positive free cash flow of 21 million euro in Q3, mainly due to a 24 million euro improvement in working capital and a 38 million euro cash-in from the AgfaPhoto arbitration. Provisions & other: different quarterly seasonality in Q3; in the first nine months, there was a positive contribution with a cash-in from the build down of the customer lease portfolio. Pension cash-out and cash-out for adjustments and restructuring items were in line with last year.
•    The free cash flow over the first 9 months improved by 72 million euro compared to last year, driven by a 51 million euro improvement in working capital and 38 million euro related to the AgfaPhoto arbitration.
•    Net financial debt (excluding IFRS 16) evolved from 37 million euro in Q4 2024 to 65 million euro. The total debt remains high, with high pension debts and an increase in net financial debt.
•    August 1, 2025, a new 3-year revolving credit facility of 180 million euro was signed, maturing August 1, 2028. 119 million euro was drawn at the end of Q3.
o    Applicable testing for Q3: liquidity headroom amounted to 126.8 million euro at the end of Q3, versus covenants of minimum 30 million euro.
o    Ratios for reference only – no testing required for Q3 2025, will be applicable for testing at year end: At the end of Q3, the leverage ratio (net debt/adjusted EBITDA) was 2.0 versus covenants of maximum 2.75 at Q4. The interest coverage ratio (adjusted EBITDA/interest expense) was at 8.5 versus covenants of minimum 5. Adjusted EBITDA was 33.1 million euro at the end of Q3 2025, versus covenants of minimum 30 million euro.