LACROIX Group (LACR) H2 2025 earnings summary

Executive summary

• 2025 marked a pivotal year with strategic refocusing, including the exit from North America and City-Mobility, and a shift toward stabilization and consolidation after significant transformations.

• Revenue reached €445.5M, with a recurring EBITDA margin of 7.6%, aligning with guidance despite revenue decline from strategic exits.

• Net income from continuing operations was €8.9M, but consolidated net income was negative due to discontinued operations and non-cash impairments.

• Free cash flow was strongly positive at €36.6M, supporting a sharp reduction in net debt.

• Major strategic transformations included the sale of Grand Rapids, shutdown of Mexican operations, and finalization of Road Signs and Mobility carveouts.

Financial highlights

• 2025 revenue from continuing operations was €445.5M, down 6.5% like-for-like, mainly due to the Electronics segment.

• Recurring EBITDA was €34.1M (7.6% margin), up from €25.4M (4.0%) in 2024.

• Recurring operating income reached €21.1M (4.7% margin), down from 5.3% in 2024.

• Net income from discontinued operations was -€56.0M, mainly due to non-cash impairments and operating losses.

• Net debt reduced from €126.7M to €80.8M, with leverage ratio at 2.6x.

Outlook and guidance

• 2026 guidance anticipates moderate topline growth and stable EBITDA margin at 7.6%.

• 2027 objectives confirmed: revenue €475–500M, EBITDA margin above 8%, and Net Debt/EBITDA below 2.0.

• Dividend suspension to be maintained for 2025 due to ongoing turnaround and economic prudence.