De'Longhi (DLG) Q2 2025 earnings summary

Executive summary

• H1 2025 revenues reached €1,584.2 million, up 11.3% year-over-year, with strong growth in both professional (+53.5%) and household (+6.5%) divisions, and all regions contributing positively.

• Adjusted EBITDA rose 17.6% to €240.7 million (15.2% margin), with net income up 9.8% to €116.6 million and net cash position at €346 million.

• Professional division now represents 14% of revenues and 24% of group EBITDA, driven by premiumization, product launches, and La Marzocco consolidation.

• Continued high-impact global marketing campaigns and activations at major events to boost brand visibility.

• Upgraded 2025 guidance: revenue growth of 6–8% and adjusted EBITDA of €590–610 million.

Financial highlights

• H1 2025 revenues: €1,584.2 million (+11.3% YoY); Q2 revenues: €829.0 million (+8.4% YoY); net industrial margin: €837.3 million (52.9% of revenues, up from 51.1%).

• Adjusted EBITDA margin at 15.2% for H1 (up from 14.4%); Q2 margin at 15.0%; EBIT for H1: €167.9 million (10.6% margin).

• Net financial position improved to €346 million as of June 2025, up from €305.3 million in June 2024.

• Free cash flow before dividends, buybacks, and acquisitions was €296 million over 12 months, but negative €45.8–€46 million in H1 due to inventory build-up and seasonality.

• Net income for H1: €116.6 million (+9.8% YoY); earnings per share: €0.78.

Outlook and guidance

• Upgraded 2025 guidance: revenue growth expected between 6–8%, adjusted EBITDA of €590–610 million.

• H2 growth rate expected to be lower than H1 due to strong prior-year comparison and macroeconomic uncertainty.

• Tariff headwinds of €50 million net impact confirmed for 2025; mitigation actions and pricing expected to offset most of the impact in 2026.

• Continued investment in advertising and promotion, with spend to increase in absolute terms but remain in line as a percentage of sales.

• Management remains cautious due to ongoing geopolitical and tariff uncertainties.