Consolidated Half-Year Financial Report
2025
Index
4 Corporate Boards 6 Directors' Report of the Aquafil Group at June 30, 2025
CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT JUNE 30, 2025
36 Consolidated Balance Sheet 37 Consolidated Income Statement 37 Consolidated Comprehensive Income Statement 38 Consolidated Cash Flow Statement 40 Statement of Changes in Consolidated Shareholders' Equity42 Notes to the Consolidated Financial Report at June 30, 2025
Statement of the Principal Financial Officer and the Delegated Bodies
Report on the Audit of the Half-Year Directors' Report at June 30, 2025
Corporate Boards
Aquafil S.p.A.
CORPORATE BOARDS
Board of Directors
CHIARA MIO GIULIO BONAZZI
GIOVANNI STEFANO LORO FRANCO ROSSI
SILVANA BONAZZI
FRANCESCO BONAZZI ROBERTO SIAGRI
ILARIA MARIA DALLA RIVA PATRIZIA RIVA
Chairperson (*)
Chief Executive Officer Director
Director Director Director Director (*) Director (*) Director (*)
(*) Director declaring independence in accordance with Article 147-ter, paragraph 4 of the CFA and Article 3 of the Self-Governance Code.
Control, Risks and Sustainability Committee
PATRIZIA RIVA ROBERTO SIAGRI CHIARA MIO
Appointments and Remuneration Committee
ROBERTO SIAGRI PATRIZIA RIVA
ILARIA MARIA DALLA RIVA
Supervisory Board
MICHELE PANSARELLA KARIM TONELLI
MANFREDI FERRARI LICCARDI MEDICI
Board of Statutory Auditors
STEFANO POGGI LONGOSTREVI BETTINA SOLIMANDO BEATRICE BOMPIERI
Independent Audit Firm
PRICEWATERHOUSECOOPERS S.p.A. - Piazza Tre Torri 2, 20145, Milan.
Chairperson Member Member
Chairperson Member Member
Chairperson Member
External member
Chairperson Statutory Auditor Statutory Auditor
The Board of Directors will remain in office until the approval of the financial statements for the year 2025 and the Board of Statutory Auditors will remain in office until the approval of the financial statements for the year 2026. The independent audit firm was appointed for the 2017-2025 period.
For full details on the Corporate Boards, reference should be made to the Corporate Governance and Ownership Structure Report, drawn up in accordance with Article 123-bis of Legislative Decree 58/1998 and available on the Aquafil Group website.
5
6
Directors' Report of the Aquafil Group at June 30, 2025
GENERAL INFORMATION OF THE PARENT COMPANY AQUAFIL S.P.A.
Registered Office: Via Linfano, 9 - Arco (TN) - 38062 - Italy Telephone: +39 0464 581111
Certified e-mail: pec.aquafil@aquafil.legalmail.it E-mail: info@aquafil.com
Website: https://www.aquafil.com
Share capital (at approval of the Half-Year Financial Statements at June 30, 2025):
Approved: € 90,522,417.36
Subscribed: € 53,354,161.28
Paid-in: € 53,354,161.28
Tax and VAT No.: IT 09652170961
Trento Economic & Administrative Registration: TN - 228169 Company duration, 31/12/2100
There are no changes relating to the name of the entity preparing the financial statements or of other means of identification since the previous period.
CONSOLIDATION SCOPE
The Group consolidates the following companies, with headquarters in EMEA, the United States, Asia and Oceania. There were no changes to the consolidation scope during the period.
(USA) 100%
0,10%
France BVBA
(BE) 99,9%
S.p.A.
(IT) 100%
Co. Ltd. (TH) 99,99%
Aqualeuna
GmbH (DE) 100%
(UK) 100%
Recycling (ACR)
#1 Inc. (USA) 100%
0,03%
Recycling (ACR)
#2 Inc. (USA) 100%
Private Ltd.
(IN) 99,97%
(USA) 100%
Polymers (Jiaxing) Co. Ltd.
(PRC) 100%
(USA) 100%
Acca S.p.A.
(CL) 50%
Bluloop
S.r.l. SB
(IT) 100%
CRO d.o.o.
(HR) 100%
Engineering GmbH
(DE) 100%
(NO) 32%
Poly-Service S.a.s.
(FR) 45%
Sanayi Ve Ticaret A.S.
(TR) 99,99%
(SI) 100%
Oceania Pty Ltd.
(AU) 100%
(CL) 100%
Japan Corp.
(JP) 100%
The Group is composed of the Parent Company Aquafil S.p.A. and 20 companies consolidated on a line-by-line basis as a result of direct or indirect control. In addition to these are the associated companies Nofir A.S. and Poly Services S.a.s., as well as the joint venture Acca S.p.A., which are valued at equity.
Production is carried out at 21 plants located in Europe, the United States, Asia and Oceania.
H1 2025 Performance
The Group, overall, reports stronger volumes for the first half of the year compared to the first half of the previous year and lower average prices, resulting in a decrease in total revenues.
The performances by product line were as follows:
carpet fibres (BCF) reports volumes substantially in line with the previous year, although generating higher revenues thanks to higher average prices in the US.
clothing fibres (NTF) did not see any significant signs of recovery, with both volumes and revenues contracting, mainly due to the persistent market weakness and particularly, in the US.
polymers continued to report robust volume growth in line with the 2025-2026 Business Plan announced to the market.
In conclusion, the first half of the year saw diverging trends - although overall volumes increased marginally and polymer quantities continue to gain market share, the persistent clothing fibre weakness impacted total revenues. Although the general environment has not yet entirely stabilised, the H1 margin improved over the previous year, mainly thanks to the reduced impact of raw material costs.
With regards to the Group debt, measures were taken to streamline and optimise costs, including the plant reorganisations in the US.
SIGNIFICANT EVENTS IN THE FIRST HALF OF 2025
The Group's key events in the first half of the year included:
In the first half of the year, the loans were settled on schedule and unsecured new medium/long-term loans were agreed by the parent company Aquafil S.p.A for a total amount of Euro 35 million, as follows:
Euro 10 million with Banca CF Plus with SACE backing;
Euro 5 million with Banca Etica;
Euro 10 million syndicate loan with BCC Veneta and ICCREA with SACE backing;
Euro 10 million with Credit Agricole with SACE backing.
On February 6, the parent company Aquafil S.p.A. settled in advance the loan taken out with Monte dei Paschi di Siena of a residual debt of Euro 1,875 thousand;
On February 20, 2025, the Company announced that Mr. Roberto Bobbio, Group CFO and Executive Officer for Financial Reporting, resigned for personal reasons, effective March 1, 2025. Roberto Bobbio has retained his duties and responsibilities until February 28, 2025. Mr. Bobbio does not hold any Aquafil shares as of today. The Company also announced that it had already identified Mr. Andrea Pugnali, former Regional CFO of the group company Aquafil USA Inc., as the ideal candidate to fill the role of Group CFO: Andrea Pugnali formally assumed this role as of August 1, 2025. To ensure a smooth transition, the routine management of the AFC department's activities, as well as ensure the smooth running of activities related to upcoming corporate events, until August 1, 2025 all functions previously reporting to the Group CFO reported directly to Mr. Giulio Bonazzi, the Company's CEO. Finally, the Company announced the appointment, effective March 1, 2025, of Ms. Barbara Dalla Piazza, Consolidation & ESG Director, as the Executive Officer for Financial Reporting pursuant to and for the purposes of Law 262/05 and Article 154-bis CFA, and, effective the same date, Mr. Stefano Giovanni Loro, President BCF, as Executive Officer for Sustainability Reporting, pursuant to and for the purposes of EU Directive 2022/2464: Dalla Piazza covered the respective position until the transfer of the related responsibilities to the new Group CFO.
On February 26, 2025, the following financing was settled by the Parent Company using surplus liquidity on hand:
the loan taken out with Crédit Agricole of a residual debt amounting to Euro 962 thousand;
the loan taken out with Crédit Agricole of a residual debt amounting to Euro 1,818 thousand.
On March 7, 2025, the following financing was settled by the Parent Company using surplus liquidity on hand:
the loan taken out with BNL of a residual debt amounting to Euro 1,136 thousand;
the loan taken out with BNL of a residual debt amounting to Euro 682 thousand.
On June 30, 2025, Aquafil Synthetic Fibres and Polymers Co. Ltd entered into a CNY 9.2 million loan with China Zheshang Bank with a 5-year term.
The Aquafil Group has begun to reorganise the carpet collection and recycling activities currently managed by two legal entities (Aquafil Carpet Collection, ACC and Aquafil Carpet Recycling #1, ACR1) located across five separate operating sites.
The carpet collection activities are managed by ACC at four locations - three in Southern California and one in Phoenix - while the recycling activities are managed by ACR1 in Phoenix.
These operations weighed on the result for the period, in addition to EBITDA, mainly due to the squeezing of
virgin raw material prices and the continued decline in the percentage of Nylon 6 carpets available on the market, in favour of Polyester carpets.
The reorganisation involves the reallocation of the five above locations into a single facility located in California, near Anaheim, which will cover both post-consumer carpet collection and recycling. The expected benefits include reducing personnel costs and improving operating efficiency by eliminating the need to pack and unpack carpets between locations, reducing logistics costs, in addition to obtaining higher subsidies as a direct result of concentrating operations in the state of California.
This transaction resulted in the recognition of the following non-recurring charges:
Accrual of a provision for charges to finish the dismantling and restoring of plants of USD 1.5 million;
Costs related to the production stop for the extraordinary maintenance and personnel involved in dismantling machinery and plants of USD 1.5 million.
For some machinery and production lines currently at the sites and whose reuse is not yet certain, the relative value was adjusted to the lower of the fair value and value in use, resulting in a write-down of USD 2.2 million.
OPERATING ENVIRONMENT
Implications of the Russia - Ukraine and Israel - Palestine conflicts
The conflict between Russia and Ukraine beginning on February 24, 2022 is having significant repercussions in Europe in terms of economic instability, slowing growth and high levels of inflation, driven by the sudden unavailability of the products and services subject to embargo. The lack of a resolution therefore continues to generate significant uncertainty and impact the general economic environment, and particularly in Europe.
The Aquafil Group in 2022 ceased all commercial relations with parties located in the countries involved in the conflict. It continues not to have a dependence on particular products and/or suppliers/clients in these areas which may impact upon operations. No direct consequences were therefore felt from the stoppage of import/exports of the products and businesses subject to limitations.
The conflict between the State of Israel and Hamas, which began on October 7, 2023 - with potential knock-on effects on other middle eastern political dynamics - currently does not appear close to a short-term peaceful solution and contributes to the continued climate of uncertainty that pervades the international markets. The impact of the conflict for the Aquafil Group, given the limited significance of these regions as markets for its product lines, has therefore not affected the operating result for the period, nor the procurement of goods and services, which are usually not sourced from the areas impacted.
AQUAFIL ON THE STOCK MARKET
At June 30, 2025, the Aquafil share price (ISIN IT0005241192) was Euro 1.32, down approx. 7.6% on December 30, 2024 (Euro 1.43). The FTSE Italia STAR index meanwhile rose over the same period (approx. +4%).
In H1 2025, Aquafil's share price trended downward, recording a low of Euro 1.15 (on March 18, 2025) and a high of Euro
1.51 (on February 24, 2025).
The average volume traded during the period was 200,611 shares, with a maximum daily volume of 1,005,166 shares (traded on March 19, 2025) and a minimum daily volume of 25,738 shares (traded on April 25, 2025).
AQUAFIL GROUP CONSOLIDATED FINANCIAL HIGHLIGHTS
Definition of alternative performance indicators
Gross operating profit (EBITDA)
This is an alternative performance indicator not defined under IFRS but used by company management to monitor and assess the operating performance as not impacted by the effects of differing criteria in determining taxable income, the amount and types of capital employed, in addition to the amortisation and depreciation policies. This indicator is defined by the Aquafil Group as the net result for the year adjusted by the following components:
income taxes,
investment income and charges,
amortisation, depreciation and write-downs of tangible and intangible assets,
provisions and write-downs,
financial income and charges,
non-recurring items.
Adjusted EBIT
Calculated as EBITDA, to which the accounts "amortisation, depreciation and write-downs" and "provisions and write-downs" are added. Adjusted EBIT differs from EBIT in terms of the non-recurring components and other charges, as specified in the notes to the "Key Group Financial Highlights" table.
Net Financial Position (NFP)
On April 29, 2021, Consob issued "Call to attention No. 5/21" in which it highlighted that the new "ESMA Guidelines" of March 4, 2021 replaced on May 5, 2021 those of preceding Consob communications. In particular, guideline No. 39 requires that financial statement disclosure includes the following definition of net financial debt:
Liquidity
Other liquidity
Other current financial assets
Liquidity (A+B+C)
Current financial debt (including debt instruments but excluding the current portion of non-current financial debt)
Current portion of non-current financial debt
Current financial debt (E + F)
Net current financial debt (G - D)
Non-current financial debt (excluding current portion and debt instruments)
Debt instruments
Trade payables and other non-current payables
Non-current financial debt (I + J + K)
Total financial debt (H + L)
Key Group Financial Highlights
in Euro thousands
H1 2025
H1 2024
Profit/(loss) for the period
2,224
(6,133)
Income taxes
272
(1,020)
Investment income and charges
(78)
0
Amortisation, depreciation and write-downs
27,328
26,987
Provisions and write downs/(releases)
1,494
(11)
Financial items (*)
4,139
11,709
Non-recurring items (**)
2,996
1,049
EBITDA
38,373
32,581
Revenues
281,158
288,133
EBITDA margin
13.6%
11.3%
in Euro thousands
H1 2025
H1 2024
EBITDA
38,373
32,581
Amortisation, depreciation and write-downs
(27,328)
(26,987)
(Provisions and write downs)/releases
(1,494)
11
Adjusted EBIT
9,552
5,606
Revenues
281,158
288,133
Adjusted EBIT margin
3.4%
1.9%
(*) Comprises: (i) interest expense on loans and other bank charges for Euro 7.9 million, (ii) customer cash discounts for Euro 1.3 million, (iii) financial income for Euro 0.6 million and (iv) net exchange gains of Euro 4.5 million.
(**) These include: (i) non-recurring Group expansion costs for Euro 0.1 million, (ii) non-recurring extraordinary legal consultancy costs for Euro 0.3 million;
(iii) non-recurring costs for personnel mobility of Euro 0.8 million, (iv) other non-recurring charges for Euro 0.4 million, mainly regarding the electricity blackout at Aquafil S.p.A. (v) non-recurring charges for the current reorganisation at Aquafil Carpet Collection and Aquafil Carpet Recycling #1 for Euro 1.4 million, as reported in the "significant events in the first half of 2025" paragraph. For further details on the non-recurring items, see paragraph 6.14 of the Notes to the Half-Year Financial Statements.
For an analysis of the highlights indicated above, reference should be made to subsequent paragraphs.
Key Group balance sheet and financial indicators
(Euro thousands)
June 30, 2025
December 31, 2024
Consolidated Shareholders' Equity
136,271
158,353
Net Financial Position (NFP)
218,659
213,542
NFP/EBITDA RATIO
3.21
3.42
The comments on the movements in the Net Financial Position are reported in paragraph 10 "Group balance sheet and financial position" paragraph.
H1 2025 CONSOLIDATED INCOME STATEMENT
The H1 2025 Income Statement compared with the same period of the previous year is reported below:
(Euro thousands)
Note
H1 2025
of which non-recurring
H1 2024
of which non-recurring
Revenues
6.1
281,158
0
288,133
0
of which related parties
6
158
Other revenues and income
6.2
6,249
10
3,285
37
of which related parties
172
0
Total revenues and other revenues and income
287,407
10
291,418
37
Cost of raw materials and changes to inventories
6.3
(121,356)
(219)
(137,791)
0
Service costs and rents, leases and similar costs
6.4
(68,164)
(1,280)
(61,701)
(148)
of which related parties
(326)
(329)
Personnel costs
6.5
(64,367)
(1,434)
(62,175)
(830)
Other costs and operating charges
6.6
(1,612)
(72)
(1,659)
(109)
of which related parties
(35)
(35)
Amortisation, depreciation and write-downs
6.7
(27,328)
(26,987)
Provisions and write downs/(releases)
6.8
(1,494)
(1,373)
11
Increase in internal work capitalised
6.9
2,137
1,976
EBIT
5,223
(4,368)
3,092
(1,049)
Investment income/charges
78
0
of which related parties
78
0
Financial income
6.10
606
641
of which related parties
2
0
Financial charges
6.11
(7,895)
(10,531)
of which related parties
(117)
(49)
Exchange gains/(losses)
6.12
4,484
(356)
Profit/(loss) before taxes
2,495
(4,368)
(7,153)
(1,049)
Income taxes
6.13
(272)
1,020
Profit/(loss) for the period
2,224
(4,368)
(6,133)
(1,049)
Minority interest profit/(loss)
0
0
Group Net Profit/(loss)
2,224
(4,368)
(6,133)
(1,049)
Basic earnings per share
6.15
0.03
(0.12)
Diluted earnings per share
6.15
0.03
(0.12)
Comments on the main H1 Consolidated Income Statement accounts
Comments on the main H1 Consolidated Income Statement accounts compared to H1 of the previous year follow:
Revenue breakdown by product line and region
Revenues by region and product line are presented in the following table (Euro millions) and also in percentage terms, alongside an analysis of the movements against the same period of the previous year:
BCF (fibre for carpet) NTF (fibre for fabrics) Polymers Total
(in millions of Euro)
2025
2024
Cge.
Cge.%
2025
2024
Cge.
Cge.%
2025
2024
Cge.
Cge.%
2025
2024
Cge.
Cge.%
EMEA
93.1
96.9
(3.8)
(4.0)%
31.2
31.9
(0.7)
(2.2)%
25.4
28.9
(3.5)
(12.1)%
149.6
157.7
(8.0)
(5.1)%
North America
71.3
62.3
9.1
14.6%
11.8
12.5
(0.7)
(5.9)%
3.3
4.3
(0.9)
(22.3)%
86.4
79.1
7.4
9.3%
Asia and Oceania
41.7
47.1
(5.5)
(11.6)%
1.6
1.5
0.1
4.7%
0.8
1.3
(0.5)
(37.8)%
44.1
50.0
(5.9)
(11.8)%
RoW
0.4
0.5
(0.1)
(11.5)%
0.6
1.0
(0.4)
(39.6)%
0
0
0
N/A
1.0
1.4
(0.4)
(30.4)%
TOTAL
206.5
206.7
(0.3)
0.1%
45.2
46.9
(1.7)
(3.7) %
29.5
34.5
(5.0)
(14.4)%
281.2
288.1
(7.0)
(2.4)%
73,4%
71.8%
16.1%
16.3%
10.5%
12.0%
100%
100%
Sales revenues in the period of Euro 281.2 million decreased Euro 7.0 million (-2.4%) on Euro 288.1 million in H1 2024.
Specifically, a comparison between the two periods highlights:
EMEA revenues totalled Euro 149.6 million, compared to Euro 157.7 million in the same period of the previous year, decreasing Euro 8.0 million (-5.1%). The reduction is mainly due to the decrease in BCF and NTF product line quantities sold;
North American revenues were Euro 86.4 million, compared to Euro 79.1 million in the same period of the pre-
vious year, an increase of Euro 7.4 million (+9.3%). The BCF product line reports higher revenues, mainly as a result of the increased quantities sold in the period, in addition to more favourable sales price movements than in the same period of the previous year. The NTF product line saw a slight decrease in revenues as a result of the reduced quantities sold in the period, alongside lower sales prices than in the same period of the previous year.
Asia and Oceania revenues amounted Euro 44.1 million, compared to Euro 50.0 million in the same period of the
previous year, a decrease of Euro 5.9 million (-11.8%). The decrease is mainly due to the reduction in sales volumes.
Other Revenues and Income
Other revenue and income amounted to Euro 6.2 million, compared to Euro 3.3 million in H1 2024, increasing Euro 3.0 million, mainly due to the reimbursements received by the U.S. Group companies for the grants to support personnel costs and the prior year income of AquafilSLO.
Costs for Raw Materials, Ancillaries and Consumables
Raw materials, ancillaries and consumables totalled Euro 121.4 million, compared to Euro 137.8 million in H1 2024, a decrease of Euro 16.4 million. Raw materials, ancillaries and consumables accounted for 43% of revenues, compared to 48% in H1 2024. The decrease in the percentage of raw materials on revenues is essentially due to their reduced cost.
Service costs
Service costs totalled Euro 68.2 million, compared to Euro 61.7 million in H1 2024, an increase of Euro 6.5 million (+10.5%). The increase is mainly due to the higher cost of utilities, in view of the increased gas prices in H1 2025 compared to H1 2024.
Personnel costs
Personnel costs totalled Euro 64.4 million, increasing Euro 2.2 million compared to H1 2024 (Euro 62.2 million). Overall, they accounted for 22.9% of revenues, compared to 21.6% in H1 2024. Despite the reduction in the average headcount in 2025, personnel costs increased mainly due to the allocation of senior management bonuses and the salary adjustments in line with inflation.
Other Costs and Operating Charges
Other costs and operating charges totalled Euro 1.6 million, in line with H1 2024 (Euro 1.7 million).
Increase in internal work capitalised
Increases for internal work amounted to Euro 2.1 million, in line with H1 2024 (Euro 2.0 million).
Amortisation, depreciation and write-downs
Amortisation, depreciation and write-downs in H1 2025 totalled Euro 27.3 million, in line with H1 2024 (Euro 27.0million). An asset write-down of approx. Euro 2 million was made in the first half of 2025 by Aquafil Carpet Recycling# 1, as outlined in greater detail in the "Significant events in the first half of 2025" section.
EBITDA
EBITDA, as defined by the alternative performance measures outlined in the key financial highlights of this report, was Euro 38.37 million, compared to Euro 32.58 million in the same period of the previous year, up Euro 5.79 million.
This increase is mainly due to the effects of the above-outlined items.
The EBITDA Margin on revenues in H1 2025 was 13.6% (11.3% in the same period of the previous year).
Other provisions
"Other provisions" amounted to Euro 1.5 million, mainly concerning the accrual to the risks provision by the company Aquafil Carpet Recycling# 1, following the reorganisation of the carpet collection and recycling activities, as outlined in greater detail previously in the "Significant events in the first half of 2025" paragraph.
EBIT
H1 2025 EBIT was Euro 5.2 million, compared to Euro 3.1 million in the first half of 2024 (increasing Euro 2.1 million). This increase is mainly due to the effects described above.
Financial Management Result
H1 2025 net financial charges amounted to Euro 2.7 million, compared to Euro 10.2 million in the same period of the previous year (improving Euro 7.5 million). The movement is due to the following: i) the decrease in financial charges of Euro 2.6 million, mainly due to the lower interest rate and reduced gross debt; ii) the improved net balance of exchange gains and losses, resulting in a net gain in H1 2025 of Euro 4.5 million, compared to a net loss of Euro 0.4 million in the same period of the previous year.
Income taxes
Income taxes in the period reported a charge of Euro 0.3 million, compared to net income of Euro 1.0 million in the first half of 2024 (an increase of Euro 1.3 million due to the improved gross result).
Consolidated Half-Year Result
The Group consolidated net result was a profit of Euro 2.2 million, compared to a loss in the first half of 2024 of Euro
6.1 million, an improvement of Euro 8.4 million, due to the reasons outlined above.
Q2 2025 CONSOLIDATED INCOME STATEMENT
Euro thousands
Q2 2025
Q2 2024
Profit/(loss) for the period
1,796
(3,029)
Income taxes
(349)
(122)
Investment income and charges
78
0
Amortisation, depreciation and write-downs
14,415
13,582
Provisions and write-downs
1,386
1
Financial items (*)
1,619
6,157
Non-recurring items (**)
2,478
751
EBITDA
21,268
17,339
Revenues
137,147
140,633
EBITDA margin
15.5%
12.3%
The interim reporting is supported by a breakdown of the consolidated result for Q2 2025 against the same period of 2024.
Euro thousands
Q2 2025
Q2 2024
EBITDA
21,268
17,339
Amortisation, depreciation and write-downs
(14,415)
(13,582)
Provisions and write-downs
(1,386)
(1)
Adjusted EBIT
5,466
3,757
Revenues
137,147
140,633
Adjusted EBIT margin
4.0%
2.7%
Consolidated Income Statement Note
(in thousands of Euro)
Q2 2025
of which non-recurring
Q2 2024
of which non-recurring
Revenues
137,147
0
140,633
0
of which related parties
(0)
75
Other revenues and income
3,380
(6)
1,646
5
of which related parties
85
0
Total revenues and other revenues and income
140,527
(6)
142,279
5
Cost of raw materials and changes to inventories
(56,752)
(219)
(64,346)
0
Service costs and rents, leases and similar costs
(33,324)
(891)
(31,059)
(74)
of which related parties
(157)
(173)
Personnel costs
(32,582)
(1,293)
(31,209)
(577)
Other costs and operating charges
(983)
(69)
(893)
(105)
of which related parties
(17)
(17)
Amortisation, depreciation and write-downs
(14,415)
(13,582)
Provisions and write downs/(Releases)
(1,386)
(1,373)
(1)
Increase in internal work capitalised
1,263
1,059
EBIT
2,347
(3,851)
2,249
(751)
Investment income/charges
78
0
of which related parties
78
0
Financial income
304
(34)
of which related parties
1
0
Financial charges
(3,839)
(5,093)
of which related parties
(49)
(21)
Exchange gains/(losses)
2,557
(272)
Profit/(loss) before taxes
1,447 (3,851)
(3,151) (751)
Income taxes
349
122
Profit/(loss) for the period
1,796 (3,851)
(3,029) (751)
Minority interest net profit
0
0
Group Net Profit/(loss)
1,796 (3,851)
(3,029) (751)
Comments on the main Q2 Consolidated Income Statement accounts
Comments on the main Q2 Consolidated Income Statement accounts compared to Q2 of the previous year follow:
Revenues by product line and region
Revenues by region and product line are presented in the following table (Euro millions) and also in percentage terms, alongside an analysis of the movements against the same period of the previous year:
BCF (carpet fibres) NTF (clothing fibres) Polymers TOTAL
2Q25
2Q24
Cge.
Cge.%
2Q25
2Q24
Cge.
Cge.%
2Q25
2Q24
Cge.
Cge.%
2Q25
2Q24
Cge.
Cge.%
EMEA
47.1
47.5
(0.4)
(0.8)%
14.8
16.2
(1.4)
(8.6)%
11.5
11.8
(0.3)
(2.2)%
73.4
75.5
(2.0)
(2.7)%
North America
36.0
31.1
4.9
15.8%
5.7
6.3
(0.6)
(9.6)%
1.5
1,9
(0,3)
(17,9)%
43,2
39,3
4,0
10,1%
Asia and Oceania
18.7
24.1
(5.4)
(22.4)%
0.9
0.3
0.6
173.3%
0.6
0.7
(0.1)
(18.7)%
20.2
25.2
(5.0)
(19.8)%
Rest of the world
0.1
0.2
(0.1)
(59.9)%
0.2
0.6
(0.4)
(61.5)%
0
0
0
N/A
0.3
0.7
(0.5)
(61.2)%
Total
101.9
102.9
(1.0)
(0.9)%
21.6
23.4
(1.8)
(7.7)%
13.7
14.4
(0.7)
(5.1)%
137.1
140.6
(3.5)
(2.5)%
74.3%
73.2%
15.7%
16.6%
10.0%
10.2%
100%
100%
Sales revenues totalled Euro 137.1 million, compared to Euro 140.6 million for Q2 2024, decreasing Euro 3.5 million (-2.5%).
Specifically, a comparison between the two periods highlights:
EMEA revenues totalled Euro 73.4 million, compared to Euro 75.5 million in the same period of the previous year, decreasing Euro 2.0 million (-2.7%).
North American revenues were Euro 43.2 million, compared to Euro 39.3 million in the same period of the previous year, an increase of Euro 4.0 million (+10.1%).
Asia and Oceania revenues amounted Euro 20.2 million, compared to Euro 25.2 million in the same period of the previous year, a decrease of Euro 5.0 million (-19.8%).
Other Revenues and Income
Other revenues and income increased from Euro 1.7 million in Q2 2024 to Euro 3.4 million in Q2 2025, up Euro 1.7 million and mainly due to the reimbursements received by the US Group companies in terms of personnel cost supports.
Raw Materials, Ancillaries and Consumables
Raw materials, ancillaries and consumables totalled Euro 56.7 million, compared to Euro 64.3 million in Q2 2024, a decrease of Euro 7.6 million (-11.8%). The decrease in the percentage of raw material, ancillary and consumable costs on revenues for Q2 2025 was due to the reduction in raw material purchase prices compared to the corresponding period of 2024.
Service costs
Service costs totalled Euro 33.3 million in Q2 2025, an increase of Euro 2.3 million (7.3%). Service costs represented 24.3% of revenues, compared to 22.1% in the same period of the previous year.
Personnel costs
Personnel costs were Euro 32.6 million, compared to Euro 31.1 million in Q2 2024 (substantially in line with the previous year). The percentage of revenues was 23.8% (22.2% in Q2 2024).
Other Costs and Operating Charges
Other costs and operating charges amounted to Euro 1.0 million (in line with Q2 2024).
Increase in internal work capitalised
Increases for internal work amounted to Euro 1.3 million, substantially in line with Q2 2024.
EBITDA
EBITDA, as defined by the alternative performance measures outlined in the key financial highlights of this report, was Euro 21.3 million, compared to Euro 17.3 million in Q2 2024, increasing Euro 4 million.
The EBITDA Margin on revenues in Q2 2025 was 15.5% (12.3% in the same period of the previous year). This increase is mainly due to the effects of the above-outlined items.
Amortisation, depreciation & write-downs
Amortisation, depreciation and write-downs in Q2 2025 amounted to Euro 14.4 million (Euro 13.6 million in the same period of the previous year), increasing by Euro 0.8 million. An asset write-down of approx. Euro 2 million was made in the second quarter of 2025 by Aquafil Carpet Recycling# 1, as outlined in greater detail in the "Significant events in the first half of 2025" section.
EBIT
Q2 2025 EBIT was Euro 2.3 million, in line with the same period of the previous year (Euro 2.2 million).
Financial Management Result
Net financial charges of Euro 1.2 million were reported in Q2 2025, compared to net charges of Euro 5.4 million in Q2 2024. The improvement of Euro 4.2 million is mainly due to: i) the decrease in financial charges of Euro 1.2 million, as a result of the reduction in interest rates and of the gross debt; ii) improved net exchange differences, which amounted to net gains of Euro 2.6 million in the quarter, compared to net losses of Euro 0.3 million in the same quarter of the previous year.
Income taxes
Income taxes were positive for Euro 0.3 million, compared to Euro 0.1 million in the same quarter of the previous year.
Consolidated Quarterly Result
The Group consolidated net result was a profit of Euro 1.8 million, compared to a loss of Euro 3.0 million in the same period of the previous year.
GROUP BALANCE SHEET AND FINANCIAL SITUATION
The following table reclassifies the consolidated equity and financial position of the Group at June 30, 2025 and December 31, 2024.
Group Balance Sheet and Financial Situation
(Euro thousands)
June 30, 2025
December 31, 2024
Change
Trade receivables
30,757
20,370
10,387
Inventories
186,966
197,535
(10,568)
Trade payables
(101,222)
(109,178)
7,955
Tax receivables
987
1,529
(542)
Other current assets
8,939
8,033
906
Other current liabilities
(21,859)
(19,642)
(2,215)
Net working capital
104,568
98,646
5,923
Property, plant and equipment
212,660
233,900
(21,240)
Intangible assets
13,231
15,168
(1,937)
Goodwill
14,240
16,064
(1,824)
Financial assets
1,893
2,082
(189)
Net fixed assets
242,024
267,214
(25,190)
Employee benefits
(4,510)
(4,627)
117
Other net assets/(liabilities)
12,719
10,517
2,202
Net Capital Employed
354,801
371,751
(16,949)
Cash and banks
112,777
130,366
(17,589)
ST bank payables and loans
(76,928)
(75,706)
(1,222)
M-LT bank payables and loans
(175,549)
(177,651)
2,102
M-LT bond loan
(38,741)
(44,481)
5,740
ST bond loan
(13,165)
(13,301)
136
Current financial receivables
1,139
980
159
Other financial payables
(28,063)
(33,603)
5,540
Net Financial Position
(218,530)
(213,396)
(5,133)
Group shareholders' equity
(136,270)
(158,353)
22,082
Minority interest shareholders' equity
0
(1) 0
Total shareholders' equity
(136,271)
(158,353)
22,082
In the consolidation process, the balance sheet items expressed in foreign currencies were impacted by the write-back/ write-down of opening balance sheet items in 2025 (currency translation effects) principally between the Euro the US and Chinese currencies: the changes in the balance sheet items compared to the previous year arose partly due to this factor.
Net working capital amounts to Euro 104.6 million, increasing Euro 5.9 million on Euro 98.6 million at December 31, 2024.
The movement is mainly due to the reduction in the value of inventories for Euro 10.6 million, almost entirely offset by increased trade receivables for Euro 10.4 million, in addition to the increase in other current assets and liabilities for Euro
1.3 million.
Fixed assets at June 30, 2025 amounted to Euro 242.0 million, decreasing Euro 25.2 million on Euro 267.2 million at December 31, 2024, as a combined effect of:
net investment activities in tangible and intangible assets of Euro 12.9 million, including Euro 1.5 million regarding the increase concerning the movement in goods recognised as per IFRS 16;
negative conversion differences and other minor items for Euro 10.7 million;
amortisation and depreciation in the period of Euro 27.3 million.
Investments in tangible and intangible assets are outlined in the Explanatory Notes and mainly concerned (a) the industrial and energy efficiency improvements at the Group's facilities, (b) the industrial efficiency and energy improvement regarding the production of ECONYL® caprolactam and of its raw materials, in addition to the development of circularity-focused technologies, (c) the expansion of existing production capacity, (d) the improvement and technological upgrading of existing plants and equipment, (e) the right-of-use as per IFRS 16 and (f) the development costs of textile fibre samples, which comply with the criteria set out in IAS 38.
Shareholders' Equity decreased by Euro 22.1 million, from Euro 158.4 million to Euro 136.3 million, mainly due to the translation reserve of financial statements expressed in currencies other than the Euro for a negative Euro 24.3 million and the net profit of Euro 2.2 million.
The Net Financial Position at June 30, 2025 was a debt position of Euro 218.7 million, compared to Euro 213.5 million at December 31, 2024, increasing Euro 5.2 million. The main factors are presented in the consolidated cash flow statement and mainly concern: (a) cash flows generated from operating activities of Euro 34 million, (b) the absorption of net working capital of Euro 15.4 million, (c) the absorption of cash for net investments of Euro 11.2 million, excluding the IFRS 16 effects which do not generate cash flows, (d) the payment of net financial charges of Euro 7.1 million, (e) the settlement of income taxes and other changes of Euro 1.2 million, in addition to the application of IFRS 16 for Euro 1.5 million and (f) the negative conversion reserve relating to cash and cash equivalents of Euro 3.0 million.
Group company current account liquidity, diversified by region and institution, decreased from Euro 130.4 million at December 31, 2024 to Euro 112.8 million at June 30, 2025.
New mortgages were entered into in the first half of the year totalling Euro 36.2 million, with instalments on existing loans settled for Euro 43.8 million, of which Euro 6.5 million repaid in advance. A breakdown of the bank debt is provided in the Notes.
The short-term credit lines granted to the Group companies were available for a total amount at period-end of Euro 52.2 million, with the relative lines not used.
INTERCOMPANY TRANSACTIONS AND TRANSACTIONS WITH RELATED COMPANIES
Inter-company transactions
Aquafil Group operations directly involve - both in terms of production and distribution - the Group companies, which are assigned, interconnected and depending on the case, the processing, special processing, production and sales phases for specific regions.
The main activities of the various group companies and principal events in H1 2025, broken down by each of the three product lines, were as follows:
BCF (Bulk Continuous Filament for textile floor covering) Line
The core business of the Aquafil Group is the production, re-processing and sale of yarn, mainly polyamide 6-based yarn, partly petroleum based and partly from regenerated ECONYL®, for the higher-quality end-markets. The Group also produces and markets polyester fibres for certain textile flooring applications.
The Group companies involved in the production and sales processes for this product line are the Parent Company Aquafil S.p.A., with production site in Arco (Italy), Tessilquattro S.p.A., with production based in Cares (Italy) and in Rove-reto (Italy), Aquafil SLO doo, with facilities in Ljubljana, Store and Ajdovscina (Slovenia), Aquafil USA Inc. with two facilities in Aquafil Drive and Fiber Drive in Cartersville (USA), Aquafil Synthetic Fibres and Polymers Co. Ltd with facilities in Jiaxing (China), Aquafil Asia Pacific Co. Ltd with facilities in Rayong (Thailand), Aquafil UK, Ltd., based in Kilbirnie (Scotland), which carries out commercial activities for the UK market, the commercial company Aquafil Benelux-France BVBA based in Harelbeke (Belgium) and the commercial company Aquafil Oceania Pty Ltd., based in Melbourne (AUS).
Group commercial operations for this product line are undertaken with industrial clients, which in turn produce for the intermediate/end-consumer markets, whose sectors are principally (a) the "contract" markets (hotels, offices and large public environments), (b) car floors and (c) residential textile flooring. Ongoing product and process technology innovation involves frequent updates to the yarns comprising the customer's collection; the research and development is carried out by the internal development centre in collaboration with developers within client companies and architectural studies and designers upon the final users of carpets.
NTF Line (Nylon Textile Filament - Fibres for textile/clothing use)
The NTF product line produces and reprocesses polyamide 6 and 66 fibres, Dryarn® polypropylene microfibers for men's and women's hosiery, knitwear and non-run fabrics for underwear, sportswear and special technical applications. The markets concern producers in the clothing, underwear and sportswear sectors, on which the main clothing brands operate.
The production/sale of fibres for textile/clothing use is undertaken by the companies Aquafil SpA (Arco), Aquafil SLO doo with facilities in Ljubljana and Senozece (Slovenia), AquafilCRO doo, with facilities in Oroslavje (Croatia), Aquafil O'Mara Inc., with facilities in Rutherford College (North Carolina) and Aquafil Tekstil Sanayi Ve Ticaret A. S., with commercial operations based in Istanbul (Turkey).
The percentage of NTF polyamide-6 fibre made from caprolactam obtained from the ECONYL® regeneration process is significant. The product is being used in the final applications of many clothing brands, who are increasingly sensitive to environmental issues.
Nylon 6 polymer line
The Group produces and sells polymers and polyamide 6 for end segments, including "engineering plastics" (injection moulding).
The polymers are mainly produced/sold by Aquafil SpA, Tessilquattro SpA, Aquafil SLO doo and Aquafil USA Inc., based in Cartersville (USA).
ECONYL® regeneration process
A significant proportion of polyamide-6 fibres, for both the BCF and the NTF product lines, as well as for polymers, are produced using the caprolactam from regenerated ECONYL® , a logistical-production system which obtains top-quality caprolactam from the transformation of materials, and mainly recovered industrial (pre-consumer) polyamide 6 and/or (post-consumer) materials disposed of at the end of their life cycle.
The caprolactam monomer obtained at the Ljubljana plant from the ECONYL® process supports all three product lines
- BCF, NTF and polymers - as an alternative raw material to that from fossil sources, for applications (a) in textile flooring with a specific sustainability focus, (b) in clothing and accessories, in particular at the request of the leading international fashion brands more dedicated to a concrete circular economy and (c) in the design and manufacture of innovative polyamide 6 based plastic products, instead of other plastic materials that, unlike polyamide 6, can not be restored to their original state by way of chemical regeneration.
The ECONYL® regeneration process is fed by recovering polyamide-6 textile flooring materials and fish netting at the end of their useful lives and a series of other industrial and consumer waste materials with high polyamide-6 content. The process is completed at the facilities of AquafilSLO doo in Ljubljana (SLO), while taking advantage of synergies within a single system of logistics and production across multiple Group companies. For the regeneration of textile flooring, certain stages of material collection and pre-treatment of used carpeting are carried out by the companies Aquafil Carpet Recycling (ACR) #1 Inc. in Phoenix, Arizona (USA) and Aquafil Carpet Collection (ACC) Inc., Phoenix, Arizona (USA), Miramar, Chula Vista and Anaheim (California). For the regeneration of fish netting, the investee company Aquafil Chile SpA (Santiago) procures good quality polyamide 6 based fishing nets in that country to ensure consistent and stable support for the ECONYL® regeneration process, as does the investee company Nofir AS in Bodǿ, Norway, a European leader in the collection and treatment of end-of-life fish netting.
Other activities
Aquafil Engineering GmbH, Berlin (Germany), carries out industrial chemical plant design and supply for customers outside the Group and in part for Group companies.
Aqualeuna GmbH, with registered office in Berlin (Germany), does not conduct operations-related activities and is solely the holding company, with a 100% stake, of Aquafil Engineering GmbH. The company currently has a tax dispute pending with the German Tax Agency, a detailed explanation of which may be found in the Notes.
The subsidiary Aquafil India Private Ltd (India) does not undertake operational activities.
Related party transactions
The transactions of the Aquafil Group with related parties, as defined by international accounting standard IAS 24, relating to the consolidated financial statements for the year ended June 30, 2025, are presented below. The Aquafil Group
undertakes commercial and financial transactions with its related companies, consisting of transactions relating to ordinary operations and at normal market conditions, taking into account the features of the goods and services provided. The Group has made available on its website https://www.aquafil.com, in the Corporate Governance - Procedures and Regulations section, the Related Parties Transactions Policy.
The Aquafil Group undertakes transactions with the following related parties:
Parent Company and other companies at the head of the chain of control (Parent Companies);
other parties identified as related parties in accordance with IAS 24 (other related parties).
The transactions between the Parent Company, its subsidiaries outside of the consolidation scope and the Aquafil Group concern financial transactions, commercial leases and transactions for the settlement of accounts receivable and payable arising from the tax consolidation of Aquafin Holding S.p.A., which includes, in addition to Aquafil SpA, the company Tessilquattro SpA. and the company Bluloop Srl. The transactions are shown in the Explanatory Notes to the financial statements.
The transactions were executed at market conditions; for a breakdown of the income statement and balance sheet amounts generated by related party transactions included in the Group consolidated financial statements at June 30, 2025, reference should be made to the Explanatory Notes.
With the exception of that indicated above there were no other transactions or contracts with related parties which, with regard to materiality upon the financial statements, may be considered significant in terms of value or conditions.
RESEARCH AND DEVELOPMENT
Introduction
The Aquafil Group has a Research & Development unit that manages and oversees all product and process innovation applied mainly to BCF yarns, NTF yarns, PA6 polymers and the ECONYL® regeneration process.
Technological research, development and innovation for H1 2025 constitutes the natural continuation of the work carried out in the preceding years, and concerned the main stages of production and the materials used, from the production inputs to the by-products of polymerisation, spinning, reprocessing and, for ECONYL®, regeneration and recycling of materials.
A number of projects - due to their complexity - last many years and are undertaken in collaboration with outside partners; other less complex projects present results in a short timeframe.
More specifically, R&D led to actions regarding efficiency, performance, product functioning, eco-design, recycling, use of auxiliary products from natural origins, the study of micro-plastics, the development of polymerisation processes, and the sectors with final product application, taking advantage of outside contributions coming in the form of market input, new technologies, new materials, and the use of solutions recommended by qualified research partners.
Summary and description of the individual projects
Technological research, development and innovation concerned numerous projects, some of which began in 2025, while others began in prior years. The main projects are listed below:
"Ecodesign": identification of basic knowledge and technology for the creation of industrial prototypes of textile flooring designed at origin to be recognisable (through the "R2R, born Regenerated to be Regenerable" dedicated voluntary marking) and recyclable, and to recover the residual value of the materials at the end-of-use. The project is carried out in collaboration with textile flooring stakeholders throughout the supply chain to create know-how that has industrial value;
Development of new technologies for mechanically separating multilayers in complex carpets, where standard grinding technologies cannot work. This project focuses mainly on projects such as: (a) carpet tiles, (b) broadloom carpets and (c) rubber underlay carpets. The objective of the technology identified and currently developed up to TRL5 is to be economic, versatile and reliable and that can be installed locally, at the point of industrial waste production or post-consumer carpet collection, to enable on-site pre-processing of the material, optimising reverse logistics costs. Tests are also currently being conducted with carpet manufacturers on the purification and reintroduction of separated materials into production cycles, with the goal of achieving the full circularity of the solution;
Related to the Ecodesign activity, Aquafil participated in the European project CISUFLO (CIrcular SUstainable FLO-orcovering), under the Horizon 2020 programme and involving 23 partners, and which has the objective of identifying innovative EcoDesign flooring solutions and recycling technologies. Aquafil S.p.A. participates in two capacities: as a recycler of polyamide 6, with responsibility for assessing the effectiveness of new design criteria in terms of recycla-bility of developed carpet tiles, and as an innovator of the product (EcoDesign) and dedicated recycling technologies. As part of the consortium, Aquafil collaborates on the development of innovative technologies for the separation and removal of glue mixtures and the relating inorganic loads from the ECONYL® regeneration products. Among the project's results to date are the development of AI-based systems for end-of-life carpet identification, the creation of predictive models to understand the environmental and economic impact of various circularity scenarios, and the
demonstration of the "single-material" approach for making high-polyamide 6 carpets suitable for direct recycling through the ECONYL® Regeneration System. The project concluded on June 30, 2025;
Development of flame-retardant carpets in association with certain customers. The combination of additives to meet the performance demands of the market, meaning a reduction in the weight of the finished product and passing the flammability tests required by the airlines. 2024 saw the first aircraft outfitted with carpets made from ECONYL® yarn and the development of a new production technology supported by related quality control. In H1 2025, research continues through the development and industrialisation of a carpet latex with specially developed additives, which act in combination with the treatment on flame retardant ECONYL® yarn;
Development of a BCF fibre with stain-resistant and water-repellent properties, based on existing products and introducing improvements in product performance, by validating options for surface treatments available on the market. In terms of stain resistance, a product has been chosen that gives the yarn excellent resistance to acid stains and more common stains, such as coffee and wine. The research activity continues with the characterization of the colour-dependent anti-stain effect. The H1 2025 study focused on the scalability of the solution chosen, assessing its impact on technology, quality control, logistics and production organisation both at the Italian plant and globally;
Study and engineering of polyamide 6 stabilising molecules aimed at increasing the UV and heat resistance for outdoor applications of nylon textile fibres (NTFs);
Along with industrial partners, joint development of new types of medium- and high-resistance polyamide 6 fibres for specific technical applications;
Study of innovative auxiliary products, including those of a natural origin, aimed at improving the chemical and physical characteristics of BCF and NTF yarns and which are compatible not only with polyamide and production processes, but also with the ECONYL® Regeneration System;
Research and development of ECONYL® PA6-based materials (with special additives developed in-house) that can be used in 3D printing. A project funded by the Autonomous Province of Trento, named MAGRITTE, began in 2024 to formulate an ECONYL® based compound suitable for large-scale 3D printing. The project, which began in May 2024, will last 24 months and also seeks to print an exhibition furniture product that can be fully recycled at the end of its life through the ECONYL® Regeneration System, in accordance with ecodesign guidelines. In H1 2025, the University of Trento completed its research on additives and fillers to be added to the ECONYL® polymer base. Tessilquattro then evaluated production feasibility and finally produced the formulations suggested by the University. The materials produced were then sent to ProM Facility for printing, which will take place in H2 2025;
Study and development of "Cast" nylon based on polyamide 6 ECONYL® with high mechanical performance H1 2025 saw the dosage of activator and catalyst in caprolactam studied and optimized, with the goal of avoiding the need to deactivate and therefore overdose them. Cast nylon sheets were also produced at the multipurpose plant in Arco using the opening mould designed in the preceding months. The process delivered positive results in terms of polymerisation and residual monomer;
Development of a standard methodology to determine the micro-plastics found in various forms (i.e. solid, liquid, gas). The ISO 4484-2:2023 standard has also been implemented by the various member states, including Italy, by the UNI body as UNI ISO 4484-2:2023. The work also features the publication and dissemination of scientific articles, which also continues through new partnerships. Specifically, this involves a collaboration with CNR STIIMA in Milan
(along with CNR STIIMA in Biella) focusing on an environmental impact study of fibrous microplastics emitted from fabrics during washing, as part of the life cycle assessment;
"Organic caprolactam" project in collaboration with Genmatica Inc., in San Diego, California (USA). This partnership continues with a focus on activities to continuously improve microorganism yields and productivity, to study the impact of by-products in the linear intermediate on its cyclization to caprolactam, and to optimise purification of crude bio 6-ACA. In H2 2024, this work made it was possible to carry out a new pilot fermentation campaign, which was subsequently validated on the pilot plant in Arco, and whose tests involved the cyclization of 6-ACA, the purification of crude bio-caprolactam, and subsequent distillation, enabling production of the final polymer in early 2025. This pilot campaign gathered valuable information, which will allow the third demo campaign to be carried out as effectively as possible in Ljubljana in H2 2025;
Development of a PET depolymerisation technology. In H1, tests continued at the Arco pilot plant, with the aim of studying on the scale of hundreds of kilogrammes the effect of the main parameters defining the process: a) type and colour of PET fed; b) amount of catalyst; c) process temperatures; d) type of decolourising agents and their amounts; e) conditions for evaporation of glycol; f) mode of crystallisation of BHET; and g) mode of drying of the obtained BHET. For some of these parameters, optimisation can be considered to be well advanced, while for others development work continues.
In a parallel effort, the doctoral research degree course continues with the Department of Physics at the University of Trento on the topic of "Composition, structure and chemical recycling of polymers from polycondensation": the main achievements in early 2025 relate to the identification via NMR of a number of impurities and the definition of the optimal parameters for evaporation of BHET and glycol mixtures;
Development of a process to separate polymer fibers (as such and/or in the form of fabrics) from elastomers. The process was found to be suitable for PA6, PA66 and PET-based fabrics and was therefore the subject of a special patent application filed in December 2022. H1 2025 saw trials carried out to separate elastomer from fabrics containing combinations of nylon 6 and elastomer. The Ljubljana production site hosts a pilot plant that enables the various stages of the process to be tested. Meanwhile, laboratory research activities continued to optimise process parameters and develop analytical methodologies. Alongside this, in collaboration with the University of Trento, various types of elastomers - both purchased and obtained post-separation and recovery - were identified to highlight any structural differences useful to optimise the separation process;
Research and development of processes aimed at the chemical recovery of polymers from separation/recycling processes: this activity was undertaken in partnership with the University of Padua. A focus was placed on the potential recovery of elastomer from separation from fibers by conversion to polyols for the production of polyurethanes. Specifically, after appropriate depolymerisation reactions and purifications, the resulting liquid is used to make polyurethane formulations. A range of formulations were studied and the influence of various recycled material contents on the final properties of the resulting polyurethane foam was assessed;
Identification, development and assessment of an appropriate pyrolysis technology for recovery and utilisation of by-products of the ECONYL® process, enabling the additional recovery of a monomer from the remaining portion of polyamide. Longer, more continuous pyrolysis tests were carried out in H1 2025 to assess the stability and repro-ducibility of the process and the most critical points of the plant. Tests were conducted at various temperatures to identify the threshold below which the ash still contains pyrolysable organic material. Process data was also collected and oil, gas and ash composition was analysed. These data were assessed to find correlations between the various parameters and to create a predictive model;
Optimisation of polymerisation production processes, in order to reduce energy and water consumption;
As part of the continuous improvement of the ECONYL® process, caprolactam distillation and purification processes were optimised in order to reduce energy consumption and decrease process byproducts. Specifically, this work focused on caprolactam recovery from waste streams and optimising the process of separating solids after neutralisation to increase filtration efficiency. In the former case, preliminary industrial-scale studies were conducted in H2 2024 and continued into Q1 2025. The studies led to the design of a dedicated reactor that is currently undergoing testing and development. In the latter case, meanwhile, studies are focusing on flocculation, through a three-year dissertation from the Faculty of Chemistry and Chemical Technology at the University of Ljubljana. This studies the behaviour of a range of flocculants, along with the development of methods to test physical parameters that may influence flocculation;
Our involvement as industry experts and project leaders in standardisation for the textile industry's microplastics methodology means Aquafil can actively participate in national (UNI) and international (EN and ISO) standardisation on the topics of circularity, Ecodesign, sustainability, biodegradability in the textile and fishing nets and accessories sectors. In May 2025, AquafilSLO hosted the annual meeting of the UNI TC 046 textile commission near Ljubljana. The commission is working on several textile-specific standards including many on the circular economy for textile products and the supply chain;
Analysis and introduction of innovative training techniques using digital tools (video tutorials and interactive knowledge testing with a focus on knowledge transfer);
Low & Ultralow DPF: Development of new portfolio of items of 1 DPF or under for the textile industry. The first product is currently being validated;
HIGH BULK Project: in accordance with market trends, Aquafil worked on producing higher-coverage yarns used in lighter, thus cheaper, but uncompromisingly wear-resistant carpets. In the course of the project, the key parameters that create the cover were then identified and studied, testing, first internally, then externally at a partner customer, the mechanical performance as the carpet production looms changed. Finally, using an iterative approach of testing and improvement, a completely new filament section was developed that can increase crush resistance and yarn coverage. It is worth underscoring the innovative nature of this solution, which is likely to be patented in the coming months. Based on the selection made, first samples and then preindustrial quantities of yarn were sent to a key customer, who made three types of carpets on three different looms. Initial results are very promising; the new yarn has made it possible to reduce the weight of yarn in the carpet by about 25%, while maintaining wear resistance in accordance with regulatory standards. The project will continue with the completion of the study of supply chains and the conduct of trials at the pre-industrial level with selected customers.
Patent developments
The following is a list of the main patents that have been filed:
Patent on the separation of elastomers from polymeric fabrics, with a particular focus on PA6 for recycling by means of the ECONYL® process.
Priority 09.12.2022, PCT filing 06.12.2023 international publication WO/2024/121765.
The opinion of ISA, the international research authority, arrived in 2024; the documents cited and the objections raised coincided with that reported by the UIBM in 2023. As such, the response was the same as it was for the Italian case, in which these responses were accepted (leading to the grant of an Italian patent in late 2024).
A decision was therefore made to proceed with the international preliminary examination, thereby simplifying the process to enter the national stages. The international study initially confirmed the ISA's opinion, so a new rebuttal was submitted in early 2025; this time, following some minor changes to the claims, the examiner recognised the novelty and inventive nature of each of the claims: it was therefore decided to enter the national stages with this latest version of the claims.
In H1 2025, the following areas of interest were selected: Europe, the U.S., Canada, China, South Korea, Japan, Vietnam, Indonesia, Thailand and India; the patent was published in India in June 2025;
Patent on the composition of a compound for 3D printing that can be directly chemically recycled. Priority 03.11.2022, PCT filing 31.10.2023 international publication WO/2024/095146.
The ISA opinion that all claims were considered novel and inventive was received in 2024; 2024 also saw the granting of the patent in Italy. Following the ISA opinion, there was no need to apply for the preliminary examination in preparation for entry into the national stages, which began in early 2025 in Europe, Eurasia, the U.S., China, Japan, and Brazil;
Patent on textile flooring waste treatment and recycling process.
Priority 21.09.2022, PCT filing 17.07.2023, international publication WO/2024/061510.
The PCT was filed in 2023, with international publication in March 2024. Following the first ISA opinion in early 2025, extensions were made in the individual areas of interest: Europe, USA, Canada, China, Japan, India, Mexico, Australia and New Zealand;
Patent on the separation of fibreglass from polymers with a particular focus on PA6 for recycling by means of the ECONYL® process.
Priority 10.11.2021, PCT filing 10.11.2022 international publication WO/2023/084441.
Patent with inventors Aquafil and University of Padua (Department of Industrial Engineering), but the exclusive property of Aquafil. Following the approval of all the claims in 2023, in 2024 the patent was filed in all the relevant regions, i.e. those with high levels of availability of PA6 reinforced with fibreglass, in order to increase the sources of raw materials for the ECONYL® Regeneration System. Europe, Eurasia, the USA, Canada, Brazil, China, Japan, South Korea, and India.
In 2024, publications were made in all areas of interest, and requests for payment of annuities for the European patent had already arrived, indicating that a grant would be forthcoming. In January 2025, the first grant was obtained in Eurasia, specifically in Russia and Belarus, countries where caprolactam is produced;
Patent on the synthesis of catalysts for PET glycolysis.
Priority 17.05.2021, PCT filing 16.05.2022 international publication WO/2022/243832.
Patent with inventors Aquafil and University of Padua (Department of Industrial Engineering), but the exclusive property of Aquafil. The national extensions were launched in the areas where polyester and processes for its chemical recycling play a key role: Europe, Eurasia, the USA, Canada, Mexico, Brazil, China, Japan, South Korea, Thailand, Indonesia, India, and Saudi Arabia.
The certificate of grant for the Italian patent was obtained in 2023, and in 2024 annual fee payment notices began to arrive from Canada, Brazil, Saudi Arabia, and Europe, a sign that a grant was forthcoming: the grant for Europe arrived in January 2025. An official action began in Eurasia in 2024, for which a rebuttal with slightly modified claims was prepared; a grant was then obtained in April 2025;
Patent on the production process of a new multicomponent NTF fibre with reduced impact on GWP (global warming potential).
Priority and PCT filing 10.02.2021 international publication WO/2022/173379.
For the patent, the extension was launched in Europe, with publication in 2023;
Patent on synthesis of caprolactam from 6-ACA, principally designed for the production of caprolactam from plant-based raw materials.
Priority 28.12.2018, PCT filing 23.12.2019 international publication WO/2020/136547.
Aquafil jointly-owned patent with Genomatica. The national extensions were launched in the areas where there is production of caprolactam and available of renewable raw materials: Europe, Eurasia, the USA, Mexico, Brazil, China, Japan, South Korea, Thailand.
By 2024 grants had been obtained in Eurasia, India, Japan, and the U.S., and by the end of the year official actions were underway in Europe, China, and South Korea. In H1 2025, the official actions in China and South Korea concluded with the grant of the patent in those two countries; the official certificate is not yet available for Europe, but the annuity payment notification has already arrived. Grants were also awarded in Mexico and Brazil in H1 2025;
Patent on improvements and optimization of solvent-free caprolactam purification technology. Priority and PCT filing 15.12.2017, international publication WO/2019/117817.
For this patent, regional extensions were requested in the main areas where there are caprolactam production plants present, and in the two-year period 2020-2021 patents were obtained, in chronological order in the USA, Europe, Eurasia and Japan. In 2023, the patent was also granted in China, the last remaining country and a key one for caprolactam production. Annual maintenance fees are currently paid;
Patent on the recovery and separation of the waste components of end-of-life polyamide carpeting. Priority and PCT filing 29.05.2017, international publication WO/2018/222142.
For the patent, valid in the USA, a further patent application was made for additions to the same process, which led to the patent being granted in Europe in 2023. Annual maintenance fees are currently paid;
Patent on the recovery of copper from discarded fishing nets used to supply ECONYL®. Priority and PCT filing 22.12.2016, international publication WO/2018/117978.
Between 2020 and 2024, grants were received in all countries for which applications had been made: USA, Japan, China, Europe, Canada, India and Chile. From 2025 onward, only annual maintenance fees will be payable.
CORPORATE GOVERNANCE
For further information on corporate governance, reference should be made to the Corporate Governance and Ownership Structure Report, prepared in accordance with Article 123-bis of Legs. Decree 58/1998, approved by the Board of Directors, together with the Directors' Report made available at the registered office of the company and on the Group website (https://www.aquafil.com/it/investor-relations/bilanci-e-relazioni).
Certain disclosure within the scope of the Corporate Governance and Ownership Structure report is covered by the "Remuneration Report" drawn up as per Article 123-ter of Legislative Decree 58/1998. Both reports, approved by the Board of Directors, are published in accordance with law on the company website https://www.aquafil.com.
OTHER INFORMATION
Management and co-ordination activity
The Company is not subject to management and co-ordination pursuant to Article 2497 and subsequent of the Civil Code.
The parent company Aquafin Holding SpA does not exercise management and co-ordination over Aquafil as substantially operating as a holding company, without an independent organisational structure and, consequently, de facto does not exercise direct management over Aquafil SpA.
All of the Italian direct or indirect subsidiaries of Aquafil SpA have met the publication requirements under Article 2497-bis of the Civil Code, indicating Aquafil SpA as the company exercising management and co-ordination.
Treasury shares
At June 30, 2025, the Company holds a total of 1,278,450 treasury shares, comprising 1.46% of the share capital, for a total value of Euro 8,612,054.
Group IRES (Corporate Income Tax) taxation procedure
Aquafil SpA is the consolidating company of the group taxation procedure, as chosen by Aquafin Holding SpA for the 2023-2025 three-year period in accordance with Articles 117 to 128 of Presidential Decree 917/1986, as amended by Legs. Decree No. 344/2003. Similarly, the companies Tessilquattro SpA and Bluloop Srl are consolidated companies within the Group taxation procedure, in accordance with the option exercised by Aquafin Holding SpA as consolidating company.
Aquafil S.p.A. for fiscal year 2023 altered the method for allocating fiscal losses resulting from tax consolidation in the event of the suspension or non-renewal of tax consolidation in accordance with Article 124(4) of the Income Tax Law. Specifically, as part of the renewal for the three-year period 2024-2026, it was indicated in line OP6, col. 3, code "4" (Change in the criterion used for any allocation of residual losses) and in column 7, code "3" (Allocation to companies that produced losses in a different manner from the previous). This change therefore results in the allocation of losses to Aquafil S.p.A..
Organisation, management and control model in accordance with Legs. Decree 231/2001
The Italian companies of the Aquafil Group have supplemented the organisation, management and control model as per Legislative Decree No. 231 of June 8, 2001, including the conduct code and operating procedures. Specifically, the Model provides for the drafting of a Code of Conduct, mapping of the corporate areas at risk, assessment of the control safeguards, and a disciplinary system to punish any offences. The Supervisory Board, appointed by the Board of Directors, is appointed to oversee its operation and update, and compliance with the law. The Model was adopted by means of a Board resolution in 2014 and was updated in 2023. It is application to Italian Group companies that have adopted it, whose employees may also use the whistleblowing system to report any offences. Over the last year, the model has been revised based on the extended catalogue of 231 offences provided for under Italian law. Specifically, three families of offences have been added to the list of predicate offences in the General Section of the Model: Crimes against cultu-