Bekaert rubber reinforcement earnings dip, sales stable

Brussels – Bekaert's rubber reinforcement business reported stable first-half sales despite strong volume growth, as price pressure and an ongoing regional demand shift weighed on margins.

Business reported “consolidated third-party” sales of €885 million during the first six months of 2026, on par with €886 million report a year earlier.

Total consolidated sales, which includes intersegment sales to internal divisions, increased to €905 million, from €899 million in the first half of 2025, the Belgian steel cord supplier said in its half-year results released 30 July.

Organically, Bekaert said, sales grew 2% year-on-year, supported by a 6% increase in volumes, reflecting strong demand from tire manufacturers in China, India and Southeast Asia.

The increase more than offset weaker demand in Europe and North America, Bekaert said.

Price and mix, however, declined 4% as demand continued to shift towards Asia, with currency movements reducing sales by 3%, while the acquisition of Bridgestone's steel cord plants added 1%.

Sales of hose and conveyor belt reinforcement products, integrated into the rubber reinforcement division this year, increased 2% year-on-year.

Underlying EBIT declined to €66 million from €81 million in the first half of 2025, while the EBIT margin decreased to 7.3% from 9.0%.

Earnings (EBITDA) for the first six months fell to €107 million from €124 million, with the earnings margin decreasing to 11.8% from 13.8%.

Bekaert said higher volumes, improved cost absorption and continued cost discipline partially offset adverse price effects and the regional demand shift.

The supplier's Brazilian rubber reinforcement joint venture reported first-half sales of €65 million, down 23% year-on-year due to lower volumes and prices amid increased imports of Asian tires.

Looking ahead, Bekaert expects demand to remain solid in China, Southeast Asia and India, while market conditions in Europe and North America are expected to “remain subdued as import pressure persists.”

The division, Bekaert said, is actively targeting growth customers and continues to focus on improved cost absorption as well as on high-value tire reinforcement.

The high-value products, it noted, addresses customer requirements around “material-efficient high-strength designs, circularity initiatives, and tire performance and durability.”