Luceco (LUCE) Q4 2025 earnings summary

Executive summary

• Revenue increased 11.9% year-over-year to GBP 271.4 million, with adjusted operating profit up 16.6% to GBP 33.8 million and adjusted EPS up 20% to GBP 0.15.

• Strong growth in EV charger sales (up 84.7% to GBP 18.1 million) and energy transition products, now a significant revenue stream.

• Acquisitions of D-Line and CMD integrated successfully, contributing to revenue, profit, and synergy benefits.

• Dividend increased 20% to GBP 0.06 per share, maintaining a 2.5x earnings cover.

• Significant cash flow generation and a strong balance sheet support further investment and M&A.

Financial highlights

• Adjusted operating margin improved by 0.5 percentage points to 12.5%.

• Gross margin reached a record 41.8% despite higher raw material costs.

• Net debt ratio reduced to 1.2x from 1.6x, with strong cash generation of GBP 30 million.

• Adjusted free cash flow was GBP 30.4 million, reversing prior year working capital outflow.

• Overheads increased mainly due to acquisitions and targeted investments in energy transition activities.

Outlook and guidance

• Like-for-like double-digit revenue growth continued into early 2026.

• Board expects adjusted operating profit for 2026 to exceed GBP 37 million, with further upside possible from Demand Flexibility.

• Continued focus on operational leverage, manufacturing efficiency, and acquisition synergies.

• Energy Transition products and EV charger participation in Demand Flexibility are key growth drivers.

• Cautious outlook due to global economic disruption and Middle East conflict.