German specialty chemicals maker Alzchem exceeded fourth-quarter earnings expectations by 15%, reporting EBITDA of €30.3 million versus analyst consensus of €29.7 million. The company offset an 8% revenue miss driven by European steel sector weakness through stronger margins in its specialty chemicals division, where volumes rose 7.5% and prices gained 4.2%.

The Trostberg-based company faced significant challenges in its Basic and Intermediates segment, where volumes plummeted 21.7% due to prolonged steel industry weakness. Despite this, EPS climbed 11.4% to €1.66, beating forecasts. Full-year 2025 free cash flow remained positive at €40.1 million, with the company ending the year with a net cash position of €30.6 million, nearly double from the previous year.

Alzchem guided for fiscal 2026 sales of approximately €600 million, a 7% increase that fell slightly below analyst expectations. The company expects EBITDA to rise 8% to around €126 million. Jefferies analysts initiated coverage with a Buy rating and €190 price target, noting the company's conservative guidance history and potential U.S. manufacturing site announcement as key developments to watch.