Breaking Down Tessenderlo Group NV Financial Health: Key Insights for Investors

From its origins as Produits Chimiques de Tessenderloo in 1919 to a modern diversified group, Tessenderlo Group NV has weathered pivotal moments-most tragically the 1942 ammonium nitrate blast that killed 189 people and injured over 900-then rebuilt, expanded through the 2015 merger with Picanol and pursued growth with a 2025 strategic partnership with Darling Ingredients to create Nextida™, a collagen-and-gelatin business projected to generate about $1.5 billion in annual revenue and expected to close in 2026; today the publicly traded TESB on Euronext Brussels shows a market capitalization near €1.52 billion (Dec 12, 2025) with ~59.23 million shares outstanding, group revenues of €2.75 billion on a trailing-twelve-month basis (€2.65 billion in 2024, down 9.58% from €2.93 billion in 2023), and a five-segment operating model-Agro, Bio-Valorization, Industrial Solutions, Machines & Technologies and T-Power-that converts specialty fertilizers, collagen and gelatins, chlorine derivatives, machinery and electricity into diversified cash flows while emphasizing sustainability, innovation, operational excellence and social responsibility.

Tessenderlo Group NV (TESB.BR): Intro

• Founded in 1919 in Tessenderlo, Belgium as Produits Chimiques de Tessenderloo.
• Core segments historically: Agro (fertilizers and crop nutrition), Bio-valorization & animal by-products, Industrial solutions (silicates, resins, chloralkali-related products), and Specialty products (silica, functional ingredients).

• 1919 - Company founded in Tessenderlo, launching its long-term presence in the chemical sector.
• 1942 - A catastrophic ammonium nitrate explosion destroyed the Tessenderlo factory and large parts of the town; official toll: 189 fatalities and over 900 injured. The factory was later rebuilt on the same site and operations continued to expand.
• 2015 - Strategic expansion via a merger with Picanol (weaving machines), broadening industrial capabilities and geographic reach.
• 2025 - Announced a strategic partnership with Darling Ingredients to combine collagen and gelatin segments into a new company, Nextida™ focused on health, wellness and nutrition growth.
• 2025/2026 - The Nextida™ combination is expected to create a company with approximately $1.5 billion in annual revenue; closing anticipated in 2026 pending regulatory approvals.

• Mission: to deliver essential molecules, sustainable ingredients and circular solutions that enable safer food, healthier lives and improved industrial processes.
• Strategic priorities: portfolio optimization, growth in higher-margin specialty ingredients (collagen/gelatin, functional proteins), geographic expansion, and improving sustainability and circularity of feedstocks.

• Multi-segment model: revenue generated from sales of chemicals, fertilizers, specialty silica and functional ingredients to B2B customers across agriculture, food, nutrition, water treatment and industry.
• Integrated value chain: sourcing raw materials (including animal by-products for collagen/gelatin), processing via proprietary plants and technologies, and selling both commodity and higher-margin specialty products.
• Industrial partnerships and M&A: strategic alliances (e.g., Picanol merger, Nextida™ with Darling Ingredients) used to scale specialty segments and capture end-market value.

• Portfolio rationalization: selling non-core assets and focusing capex on specialty and high-return units to lift group margins.
• Nextida™ formation: expected to concentrate collagen/gelatin activity into a growth vehicle, improving strategic clarity and scale in nutrition/health markets; projected to materially increase Tessenderlo's exposure to higher-margin specialty revenues.
• Cost and integration levers: synergies from mergers/partnerships, optimization of production footprint and procurement efficiencies targeted to boost adjusted EBITDA conversion.

Tessenderlo Group NV (TESB.BR): History

• Public listing: Euronext Brussels, ticker TESB
• Market capitalization (12 Dec 2025): ~€1.52 billion
• Shares outstanding: ~59.23 million
• 2015 strategic move: merger with Picanol to broaden industrial footprint
• 2025 strategic partnership: formation of Nextida™ with Darling Ingredients, combining collagen/gelatin segments

Tessenderlo Group NV (TESB.BR): Ownership Structure

• Sustainability: prioritize efficient resource use, emissions reduction and circular approaches across product lifecycles.
• Innovation: continuous R&D investments to develop new formulations, processes and services for industrial, agricultural and consumer markets.
• Operational excellence: standardized manufacturing, strict safety protocols and quality controls to increase throughput and reduce incidents.
• Integrity & transparency: governance practices, public reporting and compliance programs to maintain stakeholder trust.
• Social responsibility: community engagement, employee safety programs and targeted social investments in host regions.
• Collaborative culture: cross‑functional teamwork, open communication and employee development to drive performance and retention.

• Segmented commercial model: revenue is generated through multiple business lines-specialty industrial chemicals, agricultural solutions (crop protection, fertilizers), and consumer/life‑science products-serving manufacturers, distributors and end customers globally.
• Value creation via formulations and services: proprietary formulations, toll‑manufacturing and technical support services raise margins beyond commodity chemistry sales.
• Geographic diversification: manufacturing footprint and sales presence across Europe, North America, Latin America and APAC reduce region‑specific risk and capture growth pockets.
• Cost & capital discipline: continuous process improvements and selective capital allocation (M&A, capacity expansion) aim to improve adjusted EBITDA and free cash flow conversion.

• Institutional investors: represent the largest ownership block, reflecting active coverage by asset managers and pension funds.
• Retail shareholders: meaningful free float on Euronext Brussels for individual investors.
• Management & board: hold minority stakes aligning leadership with shareholder interests, typically through direct holdings and long‑term incentive plans.
• Treasury & other: company treasury shares and smaller strategic stakes held by partner entities or foundations.

Tessenderlo Group NV (TESB.BR): Mission and Values

• Agro - production, marketing and trading of crop nutrients: liquid crop fertilizers, potassium sulfate (SOP), and organic soil improvers for farmers and distributors.
• Bio-Valorization - rendering and biochemical processing of animal by-products into gelatins, collagen peptides, hydrolyzed proteins and animal fats, turning waste streams into saleable biomaterials.
• Industrial Solutions - manufacture and sale of chlorine derivatives, fine chemicals and performance additives for industrial customers (water treatment, construction, coatings, etc.).
• Machines & Technologies - design and supply of industrial machinery, mechanical engineering services and process equipment that support internal plants and external customers.
• T-Power - energy production (thermal and electrical) to supply group operations and sell surplus power to the grid where applicable.

• Upstream feedstock sourcing and commodity trading (Agro) capture margin through scale and logistics optimization.
• Value-add processing (Bio-Valorization & Industrial Solutions) converts low-value inputs into higher-margin specialty products (gelatin, peptides, fine chemicals).
• Equipment sales and engineering (Machines & Technologies) produce project revenue plus recurring servicing and spare parts income.
• Energy production (T-Power) reduces internal operating costs and generates third-party electricity sales when capacity permits.
• Cross-segment integration enables internal supply chain efficiencies and margin retention (e.g., by-products used as inputs elsewhere in the group).

• Agro: ~40% - driven by crop nutrient volumes, SOP sales and pricing cycles.
• Bio-Valorization: ~25% - specialty proteins, gelatins and animal fat sales with higher margin mix.
• Industrial Solutions: ~20% - chlorine derivatives and chemicals for industrial customers.
• Machines & Technologies: ~10% - project-based revenue and aftermarket services.
• T-Power: ~5% - internal energy supply and external power sales.

• Integrated value chain: ability to capture margins by converting by-products into higher-value outputs across segments.
• Specialty product portfolio (gelatins, peptides, potassium sulfate) with technical know-how and customer relationships.
• Geographic diversification and scale in raw material sourcing and logistics.
• Asset-backed cash generation from industrial plants and energy assets supporting steady free cash flow.

• Investing in capacity expansions for high-margin Bio-Valorization products (R&D and plant upgrades).
• Maintaining and optimizing Agro logistics and storage to capture seasonal pricing benefits.
• Selective M&A to broaden specialty product footprint and geographic reach.
• Energy efficiency and decarbonization projects within T-Power and process plants to lower operating costs and meet sustainability targets.

Tessenderlo Group NV (TESB.BR): How It Works

• Core business model: manufacture and sell specialty inputs (fertilizers, crop protection, gelatins, collagen peptides, chlorine derivatives) plus provide machines, engineering services and generate power for internal use and external sale.
• Value levers: product differentiation (specialty fertilizers, high-purity gelatin/collagen), vertical integration (by-products valorization), recurring B2B contracts, and selective M&A & partnerships (e.g., Nextida™).

• Agro: Revenue from specialty fertilizers, crop-protection formulations and organic soil improvers sold to farmers and distributors across Europe, North America and emerging markets. The Agro segment is typically the largest contributor to group revenue in crop seasons.
• Bio‑Valorization: Revenue from gelatins, collagen peptides, proteins and animal fats sold into food, pharma, nutraceutical and cosmetic industries. This segment benefits from higher-margin specialty and health-nutrition products and the strategic joint-venture/partnership activity (Nextida™) to scale collagen-based offerings.
• Industrial Solutions: Sales of chlorine derivatives (e.g., sodium chlorate, chlor-alkali derivatives), fine chemicals and industrial services and equipment to pulp & paper, water treatment, metals and other manufacturing industries.
• Machines & Technologies: Income from selling advanced process machinery, mechanical engineering solutions and aftermarket services to industrial clients, often linked to other Tessenderlo operations or external OEM customers.
• T‑Power: Electricity generation and sale - monetizing energy production (utility-scale and onsite cogeneration) both to supply internal operations (reducing operating costs) and to sell power to third parties where grid access allows.

• Agro: ~35-40%
• Bio‑Valorization: ~20-25% (prior to full Nextida integration)
• Industrial Solutions: ~20%
• Machines & Technologies: ~5-7%
• T‑Power and other activities: ~5-10%

• Raw materials sourcing and by-product valorization - e.g., animal-derived feedstocks from slaughterhouses are processed into gelatins/collagen (Bio‑Valorization) while other streams feed chemical and fertilizer lines.
• Integrated manufacturing - chemical intermediates are produced and routed internally or sold externally, improving margins versus pure merchant suppliers.
• Customer mix - combination of long-term contracts (B2B industrial customers, utilities, food/pharma manufacturers) and seasonal/agricultural spot markets.
• Innovation & premiumization - higher-margin collagen peptides, specialty fertilizers and machines/engineering solutions allow margin uplift vs. commoditized products.
• Energy optimization - T‑Power reduces production costs via cogeneration and monetizes spare capacity.

• Partnership with Darling Ingredients to form Nextida™ targets a focused collagen & gelatin global platform, expected to reach approximately $1.5 billion in annual revenue on a pro‑forma basis, significantly scaling Tessenderlo's Bio‑Valorization exposure and market position in collagen-based health and nutrition products.

• Agro sales volumes (seasonal tons sold), selling prices per ton and crop-chemical mix.
• Bio‑Valorization margin per ton for gelatin/collagen and peptide mix shift toward higher-value peptides.
• Chlor-alkali and fine-chemical sales volumes and energy costs (electricity, gas) impacting Industrial Solutions.
• Machine & Technologies order book, backlog and aftermarket service revenue.
• Power production (GWh) and realized electricity prices for T‑Power.

Tessenderlo Group NV (TESB.BR): How It Makes Money

• Market position: market capitalization ~€1.52 billion (as of 12 Dec 2025) and trailing twelve months (TTM) revenue of €2.75 billion.
• Recent performance: 2024 revenue €2.65 billion, down 9.58% from €2.93 billion in 2023, reflecting cyclical pressures in commodities and integration timing for growth initiatives.
• Strategic growth: partnership with Darling Ingredients to form Nextida™, projected to create ~US$1.5 billion in annual revenue; expected close in 2026 pending regulatory approvals.

• Primary revenue streams:
  • Crop nutrition and fertilizers - bulk volumes and seasonal sales to agriculture markets.
  • Animal by-products and collagen solutions - higher-margin, specialty ingredients (expanded via Nextida™).
  • Industrial chemicals and resins - commodity and specialty customers in manufacturing and water treatment.
  • Value‑added services - technical support, contract manufacturing and logistics.
• How margins are created:
  • Vertical integration of raw materials and downstream processing reduces input cost exposure.
  • Specialty product mix (bio-based, collagen, resins) carries higher gross margins than commodity fertilizers.
  • Portfolio optimization and divestments/freeing capital to invest in sustainable and higher-growth lines.
• Strategic drivers for future cash flow:
  • Nextida™ is expected to scale collagen and nutrition solutions, adding stable recurring revenue and synergies.
  • Focus on sustainability and innovation to access premium markets and regulatory incentives.
  • Geographic and end-market diversification to reduce single-market cyclicality.