hGears (HGEA) Q4 2025 earnings summary

Executive summary

• FY2025 results slightly exceeded guidance, with improved profitability and margins due to efficiency and cost reduction measures, despite lower volumes, especially in the e-Bike segment.

• Maintained strong focus on liquidity and cash preservation, operating with a solid balance sheet.

• Market environment remained challenging due to geopolitical uncertainties, weak macroeconomic momentum, and limited market visibility.

• Structural changes and disciplined execution supported margins and cash preservation.

Financial highlights

• FY2025 sales reached EUR 91.8 million, down 4.1% year-over-year, mainly due to weakness in e-Bike.

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

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

• Adjusted personnel expenses fell 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.

Outlook and guidance

• 2026 revenue expected between EUR 80 million and EUR 90 million.

• Adjusted EBITDA guidance for 2026 is between EUR -3 million and EUR 0, reflecting prudent assumptions amid cost and market uncertainties.

• Free cash flow expected in the range of EUR -5 million to EUR -2 million for 2026.

• Guidance assumes stable e-bike volumes, conservative automotive outlook, and higher energy costs.