TRUMP’S DEFENSE BUDGET, INVESTMENTS, AND TARIFFS
During a recent briefing for analysts, ElvalHalcor’s Deputy CFO, Angelos Yazitzoglou, highlighted the group’s intent to expand its activities in the defense sector. With an expected boost in defense spending from NATO and the European Union’s €800 billion defense initiative, the sector is poised for significant growth. “Currently, only 1% of our turnover comes from defense. We aim to increase this percentage as the EU funding presents opportunities for related projects,” he stated.
REFERENCE TO TARIFFS AND UKRAINE
Yazitzoglou discussed tariffs, noting that exports to the U.S. constitute 8% of total sales, suggesting that there will be no considerable adverse impact on the balance sheet. “We do not anticipate significant changes due to tariffs in 2025,” he said. In relation to the potential end of the war in Ukraine, Yazitzoglou described it as a positive development, likely reducing energy costs and lower aluminum prices due to the lifting of import restrictions on metals from Russia.
INVESTMENTS
Regarding investments, Yazitzoglou mentioned that following the completion of the aluminum plant investment in 2023, CAPEX is projected to be lower in 2024, at €51.4 million. CAPEX for 2025 will remain around the same level, possibly slightly higher, as the group adopts a cautious stance to assess market developments, potential tariff changes, and the geopolitical climate’s impact on the global market.
Author: Ioanna Dragona
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