Azelis Group (AZE) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 revenue reached EUR 1.0bn, down 0.7% year-on-year in constant currency, with a 3.9% organic decline partially offset by 3.3% growth from acquisitions.

• Adjusted EBITA was EUR 104m, with margin down to 10.0%, reflecting a 12.7% year-over-year decline and cost discipline partially offsetting lower revenue.

• Free cash flow was EUR 119m, with a 113% cash conversion ratio, highlighting strong cash generation and asset-light business model.

• Net debt reduced to EUR 1.5bn, leverage at 3.4x, and liquidity at EUR 799m.

• Strategic focus remains on cost discipline, cash generation, and executing key programs while navigating volatility.

Financial highlights

• Revenue of EUR 1.0bn, down 0.7% year-on-year at constant currency; 5.2% decline on a reported basis due to FX headwinds.

• Gross profit was EUR 246m, margin 23.7%, down 2.3% year-on-year, with a 38 bp contraction due to negative mix effects.

• Adjusted EBITA margin declined to 10.0%, down 86 bp year-on-year.

• Free cash flow conversion ratio improved to 113% from 100% prior year.

• Net working capital to revenue ratio improved to 13.9% from 14.7% prior year.

Outlook and guidance

• Persistent volatility expected due to geopolitical tensions, with only moderate near-term uplift from pre-buying or price inflation.

• Focus remains on cost management, cash generation, and capturing upside as market conditions gradually recover.

• The business model is considered resilient and well-positioned for long-term industry trends.