Belgian specialty chemicals distributor Azelis Group NV reported a steeper-than-expected drop in fourth-quarter profit, with adjusted EBITA falling 23% to €78 million and missing analyst consensus of €82 million. The decline was driven by a 4.9% drop in organic sales across all three regions, as tariff uncertainty and weak demand pressured margins.

Gross margin contracted 128 basis points to 23.1%, reflecting negative product mix effects, while the EBITA margin fell 164 basis points to 8.4%. The weakness was broad-based, with EMEA revenue down 4.3%, the Americas 5.4%, and Asia Pacific 5.2%. The company's decommoditisation program and excess supply in Southeast Asia further impacted results, with Life Sciences categories underperforming.

For the full year, adjusted EBITA fell 12.7% to €411 million, with revenue declining 2.4% to €4.1 billion. Despite strong cash generation of €442 million in free cash flow, net debt rose to €1.6 billion, pushing the leverage ratio to 3.3 times EBITDA. CEO Anna Bertona cited trade and geopolitical disruptions for the growth recovery failure, with no concrete guidance provided for 2026.