LU-VE (LUVE) Q2 2025 earnings summary

Executive summary

• Q2-25 marked a return to growth with a record order backlog up 31.7% year-over-year, supporting a positive outlook for H2 2025.

• H1-25 sales were nearly flat year-over-year at €294.7M (-0.6%), with Q2 sales up 3.2% and Q2 adjusted EBITDA margin at a record 15.6%.

• Adjusted EBITDA for H1-25 reached €43.1M (14.6% margin), up 0.3% YoY; adjusted net income was €22.6M (7.7% of sales), up 9.5% YoY.

• Strategic investments in the US and China, and a focus on operational efficiency and order intake, are expected to drive future growth.

• Heightened geopolitical and economic uncertainty, with volatility in raw material prices and currency exchange rates, impacted H1 2025.

Financial highlights

• H1-25 sales: €294.7M (-0.6% YoY); Q2-25 sales: €159.4M (+3.2% YoY); at constant FX, -1%.

• Adjusted EBITDA: €43.1M (14.6% margin, +0.3% YoY); Q2-25: €24.8M (15.6% margin, a record).

• Adjusted net income for H1-25: €22.6M (7.7% of sales), up 9.5% YoY; net profit: €17.0M (5.8% margin, -15.3% YoY).

• Net financial debt reduced to €96.4M (NFD/EBITDA LTM: 1.17x vs 1.48x in H1-24); net financial position improved by €22.5M YoY.

• Cash flow from operations in H1-25: €30.3M (10.3% of sales); LTM net cash generation adjusted: €53.4M.

Outlook and guidance

• Year-end sales targets remain achievable, supported by a record order book and ongoing project negotiations.

• Sales expected to grow in H2 2025, driven by strong order backlog and improved demand in select segments.

• Focus on datacenter and industrial projects, automation, process optimization, and supply chain efficiency.

• Second stage of US plant expansion underway; nuclear application sales expected to start in H2-2025.

• Short-term visibility remains limited due to macroeconomic and geopolitical uncertainties, especially for large projects.