hGears (HGEA) Q4 2025 earnings summary

Executive summary

• Results for FY2025 slightly exceeded guidance, with improved profitability and margins driven by efficiency and cost reduction measures, despite challenging market conditions and lower volumes, particularly in the e-Bike segment.

• Structural changes and disciplined execution supported margins and cash preservation, with a strong focus on liquidity and a solid balance sheet.

• Market environment remained challenging due to geopolitical uncertainties and weak macroeconomic momentum.

Financial highlights

• FY2025 revenues declined by 4.1% year-over-year to EUR 91.8 million, mainly due to weakness in the e-Bike segment.

• Adjusted EBITDA improved to EUR 1.6 million, up from EUR 0.5 million, reflecting structural adjustments and cost improvements.

• Adjusted gross margin remained stable at 45.7% despite adverse product mix and lower volumes.

• Adjusted personnel expenses declined by EUR 2.7 million year-over-year, with headcount reduced from 644 to 601.

• Free cash flow was stable at EUR -3.3 million, impacted by a EUR 2.1 million accounting-related reclassification; CapEx normalized to EUR 2.9 million.

• Net debt increased to EUR 18.5 million; equity ratio fell to 31.9% due to a EUR 13.9 million impairment.

Outlook and guidance

• 2026 revenue expected in the range of EUR 80–90 million, adjusted EBITDA between EUR -3 million and EUR 0, and free cash flow between EUR -5 million and EUR -2 million.

• Guidance reflects continued market uncertainty, prudent cost assumptions, and limited visibility, especially in e-Bike and automotive.

• No significant change planned for e-Bike volumes in 2026; conservative assumptions for automotive due to project delays.