Avolta (AVOL) Q4 2025 earnings summary

Executive summary

• Achieved strong organic growth of 5.5%, with EMEA (8.2%), Latin America (7.4%), and Asia Pacific (6.9%) leading, while North America was flat; disciplined capital allocation and focus on cash generation and ROIC accretion supported performance.

• EBITDA margin increased for the fourth consecutive year to 9.7%, with EBITDA reaching CHF 1,324m (+4.5% YoY).

• Equity Free Cash Flow rose 15% to CHF 487m, with per-share growth of 18% due to share buybacks and a conversion rate of 36.8%.

• Earnings per share grew 33%, driven by strong EBITDA and reduced share count.

• Return on invested capital (ROIC) improved to 11.4%, surpassing pre-pandemic levels.

Financial highlights

• Turnover reached CHF 13.72 billion, up 5.5% organically and 5.9% at constant exchange rates compared to 2024.

• Net profit was CHF 645 million, with minority interest at 22.8%.

• Gross profit margin saw a slight decline due to regional mix, while concession expenses as a percentage of turnover increased.

• Personnel and general expenses decreased, aided by productivity improvements and internalization of functions.

• Record equity free cash flow, supported by improved inventory management and stable CapEx.

Outlook and guidance

• Medium-term outlook confirmed: organic growth of 5–7% per annum, EBITDA margin to improve by 20–40 basis points annually, and cash flow conversion to rise by 100–150 basis points.

• Early 2026 trading shows approximately 4.5% organic growth YTD, with February at 5.5%.

• Guidance remains unchanged despite geopolitical risks and regional volatility.