Q2 25 results reflect adverse trends across the board Bekaert''s Q2 25 sales were down 7%, o.w. 4.3% on a LFL basis (vs. -2.3% expected by consensus). Underlying EBIT came in at EUR171m, down 16% and tracking 7% below cons. By division: 1) Rubber Reinforcement (RR) saw a 5% organic decline as volume gains in China were more than offset by declines in Europe and NA. H1 25 divisional EBIT fell 17% due to lower sales and price pressure. 2) Steel Wire Solutions (SWS) was up 0.7% LFL as lower volumes were more than offset by pricing. The business was well oriented in the US (energy and utility) and weaker in Europe/Latam. 3) Bridon-Bekaert Ropes Group (BBRG) sales decreased 2% LFL on lower volumes but the business increased its EBIT margin significantly as reorganisation issues have been resolved. 4) Specialty Businesses (SpB) continued to face very challenging end markets (LFL down 13% in Q2), reflecting project delays in Europe and a subdued Hose and Conveyer belt subsegment. This has driven a 50% decline in divisional EBIT. Outlook revised down Management now expects slightly lower sales in 2025 vs. 2024 (on a LFL basis) and underlying EBIT margin to decrease to 8-8.5% (vs. stable in its previous indication). Management highlighted that escalating US steel tariffs have been increasingly more difficult to pass through while the weakening macro environment should translate into weakening demand in H2 25. We lower our EPS and TP - Neutral maintained We have revised down our EPS forecasts to take into account the Q2 25 results shortfall and the lower guidance. We have also lowered our target price (to EUR32 from EUR35) to reflect our earnings cut. We keep our Neutral rating.