ElvalHalcor’s Presence in Defense Industry – Future Prospects

A significant impact is being made globally by ElvalHalcor, a subsidiary of the Viohalco group, as stated yesterday (8.5.2025) by the company’s deputy financial director, Angelos Yazzitzoglou, during the presentation of its financial results. He added that the company aims to further strengthen its production presence in this specific sector. Already, the Greek Copper and Aluminum Industry supplies major defense industries worldwide with materials for various applications such as ships, unmanned marine vessels, armored vehicles, anti-aircraft systems, and even mobile operation centers, according to a recent announcement. The company also operates in the production of copper alloy strips for small and medium-caliber ammunition, as well as cases for cartridges and projectiles. Additionally, it manufactures large-thickness discs and sheets from copper alloys used for medium and large-caliber ammunition production. Concerning the potential impact of American tariffs, ElvalHalcor is anxiously monitoring developments regarding new aluminum tariffs from the Trump administration, with fears extending to copper. Regarding the tariffs, CFO Nikolas Psyrakis emphasized that the U.S. market cannot internally meet today’s existing demand. ‘If American consumers continue to consume at the same rate, supply will need to come from the same sources as today,’ he noted. It’s worth noting that the ElvalHalcor Group maintains a presence in the American market, with 8% of total sales directed to the U.S., where purchases show high-profit margins. ‘So far, we haven’t seen any impact on our sales. We don’t know how the situation will evolve, but we have a significant advantage: our extensive diversification across both product lines and markets,’ highlighted the CFO. According to him, the Group is advancing in precautionary planning. ‘We will try to run internal plans so that if something happens in the market, we can cover the required quantities,’ underscored Mr. Psyrakis. During 2024, the ElvalHalcor Group made minor investments in the copper sector, mainly for component maintenance, along with some investments to enhance production capacity, which were completed mid-year. ‘Currently, there are no decided investment plans because we want to see how the markets move before making the right decision,’ said Mr. Psyrakis. However, investments are certain since ‘we operate in two sectors where companies cannot avoid investing,’ he pointed out. For 2025, investment levels are planned to slightly increase compared to 2024 without reaching 2022 levels. Despite economic challenges and reduced demand in the construction sector, ElvalHalcor managed to continue its upward trend. The company’s consolidated turnover reached €3,438.5 million in 2024 against €3,293.4 million in 2023, marking a 4.4% increase due to higher sales volume and metal prices. Pre-tax profits rose to €126 million in 2024 compared to €43 million in 2023. The Board of Directors proposed a dividend of €0.09 per share at the General Shareholders’ Meeting. Working capital amounted to €538 million in 2024 from €620 million the previous year, while net debt decreased by €169.9 million, reaching €643 million, thanks to enhanced free cash flows resulting from successful working capital management and slowed investments following the completion of major programs in the aluminum sector and lower reference interest rates. ‘The first quarter has started well. We’re within target,’ optimistically declared Mr. Psyrakis, predicting that ‘2025 won’t be far off what we achieved in 2024.’