IMCD (IMCD) Q4 2025 earnings summary

Executive summary

• Revenue grew 1% year-over-year to €4,779 million, with 5% growth on a constant currency basis, driven by organic growth and seven acquisitions that added €320 million in annualized revenue and 200 employees; a further acquisition in South Korea was completed in January 2026.

• Gross profit reached €1,194 million, up 3% on a constant currency basis but down 1% on a reported basis, with margin declining to 25.0% from 25.4%.

• Operating EBITA declined 6% to €498 million, mainly due to margin pressure, inflation-driven cost growth, and adverse currency movements.

• Net result dropped 22% to €217 million, reflecting lower EBITA, higher finance costs, and one-off organizational adjustments.

• Strategic initiatives included the rollout of a Sales Assistant tool, global digitalization efforts, and a 57% increase in employee training hours.

Financial highlights

• Revenue increased by €51 million (1%) to €4,779 million; gross profit margin slightly decreased to 25.0%.

• Operating EBITDA fell 6% to €539 million, with margin down to 11.3%.

• Free cash flow rose 3% to €465 million, with a cash conversion margin of 91.4%.

• Net finance costs rose to €80 million, mainly due to higher currency exchange losses and lower deferred consideration gains.

• Cash earnings per share dropped 18% to €5.19; basic EPS was €3.68, down 24% year-over-year.

Outlook and guidance

• Management remains confident in sustaining growth and creating long-term value, despite ongoing macroeconomic, political, and currency uncertainty.

• Early 2026 shows more optimism and a building order book, but visibility remains limited and currency headwinds are expected to persist.

• Focus remains on earnings growth, service optimization, and market position strengthening.