Agfa-Gevaert is a digital and materials turnaround opportunity, with growth potential in ZIRFON, but carrying legacy risks.

Agfa-Gevaert: A New Lease of Life Through Digitalisation and Materials Innovation

A Careful Industrial Repositioning, Driven by Discipline, Digitalisation, and Speciality Materials

Agfa-Gevaert (Euronext: AGFB) has undergone a transformation from an iconic photographic company into a focused digital imaging and specialty materials company. Following the sale of its Offset Solutions division to Aurelius Group in 2023, Agfa significantly reduced its exposure to the cyclical print sector and freed up capital for growth in higher-margin segments, such as digital radiology, industrial inkjet, and advanced chemical materials. 

With a healthier balance sheet, improved liquidity, and a refocused portfolio, the Belgian imaging pioneer is positioning itself for a more stable and profitable future, rooted in the digitalisation of healthcare, industrial innovation, and sustainable material technology.

1. A structural reset after two decades of transformation. The divestment of the Offset Solutions division in 2023 was Agfa's most significant restructuring in over a decade. This business unit, which in the 2022 financial year was still responsible for nearly a fifth of total revenue (€779 million), was transferred to Aurelius Group and renamed ECO3. Thanks to the deal, Agfa continues to supply consumables and technical services to the former division, ensuring recurring income without the heavy capital requirements of the offset printing industry. This simplified the company's structure and enabled management to concentrate on higher-margin and more defensible segments.
2. Legal arbitration victory strengthens the financial foundation In June 2025, Agfa secured a long-awaited legal victory in an arbitration case related to the spin-off of its consumer imaging business in 2004. The International Chamber of Commerce dismissed the claims of the AgfaPhoto insolvency administrator and awarded Agfa approximately €38 million, putting an end to a potential risk that had plagued the company for nearly two decades. In July 2025, following the ruling, Agfa also received a payment of €45 million, including interest. This decision strengthened Agfa's balance sheet and provided the company with additional liquidity for digital transformation projects.
3. Digital Imaging: From film to software and data: Agfa's Radiology Solutions division remains its operational core, supplying hospitals worldwide with imaging systems, enterprise platforms, and medical film. Although analogue film volumes continue to decline, revenue from Agfa's Direct Radiography (DR) and enterprise imaging platforms is growing steadily, ensuring recurring income and higher margins. By expanding its cloud services and AI-driven analytics platforms, Agfa is positioning itself as a hybrid player that combines traditional medical imaging with the data-driven healthcare systems of the future.
4. Industrial Inkjet and Materials Technology: The next growth wave The Digital Print & Chemicals division is now the basis of Agfa's industrial growth strategy. Its Anapurna and Jeti Tauro printer families continue to gain market share, supported by proprietary UV-curable inks and high recurring revenue per installed unit. In addition, Agfa is leveraging its deep expertise in chemistry and coatings to develop functional membranes and specialty films for next-generation energy and filtration systems. These technologies, such as the ZIRFON membranes for the production of green hydrogen, illustrate how Agfa is evolving from a traditional film manufacturer into a materials innovation company aligned with Europe's energy transition.
5. Restructuring and financial discipline Despite operational improvements, Agfa continues to carry significant pension obligations from historical defined-benefit pension plans. While these are largely non-cash, they remain a balance sheet constraint. In parallel, Agfa launched a multi-year cost-saving programme, with an agreement reached in February 2025 to eliminate 470 jobs in Belgium, primarily through natural attrition and redeployment. This reflects the ongoing decline of analogue film activities. Further measures are planned to optimise the cost base of the film activities.
6. A simpler, more focused company Effective 1 January 2026, Agfa will operate and report through a streamlined structure of three business segments:
   • HealthCare IT: Led by Nathalie McCaughley.
   • Industrial Solutions: Led by Vincent Wille and consisting of Digital Printing Solutions and Green Hydrogen Solutions.
   • Imaging and Chemicals: Led by Pascal Juéry and consisting of Film and Chemicals, Computed Radiography, and Contractor Operations and Services (CONOPS).
7. Dividend policy: Dormant but flexible Agfa-Gevaert has not paid a dividend since 2010, reflecting its strategic focus on restructuring, reinvestment, and balance sheet repair. While no dividend payments are currently planned, management has not ruled out resuming payouts in the future, especially if free cash flow strengthens following the cost-cutting and growth initiatives.
8. Valuation and market outlook Analysts note that the growth of the Healthcare IT division and the stability of the Digital Print & Chemicals division do not yet fully offset the ongoing decline in the traditional medical film sector. While the stock's valuation is subjective, the market is currently reflecting the challenges in the traditional segments. However, future operational improvements and growth in the digital and industrial arms could provide a basis for a potential long-term recovery.
9. Key investor takeaways
   • Structural Simplification: The 2023 sale created a leaner, more focused portfolio.
   • Balance Sheet Strengthening: A legal victory adds approximately €38 million and eliminates legacy risk. In July 2025, Agfa also received a payment of €45 million following the ruling.
   • Digital Momentum: DR systems, imaging software, and industrial inkjet are generating recurring income.
   • Materials Innovation: The development of membranes and special films is broadening the growth base.
   • Restructuring Risk: A restructuring agreement from February 2025 concerns 470 jobs in Mortsel due to the continued decline of analogue film.
   • Pension Liabilities: Historic pension obligations continue to weigh on the balance sheet.
   • Dividends Suspended: No dividend has been paid since 2010, but there is potential with improved cash flow. 

Conclusion: A cautious European turnaround story Agfa-Gevaert's transformation is one of persistent effort. After shedding its weakest business units, resolving legal issues, and repositioning around digital imaging and advanced materials, Agfa is a credible industrial turnaround story.

While dividends are suspended, operational improvements, a clearer balance sheet, and innovation in specialty materials and digital healthcare suggest a company positioned to create long-term value, making it an interesting case for patient, long-term investors.

"This is not financial advice. All views expressed are personal interpretations of publicly available information and are not predictions or recommendations."