NewPrinces (NWL) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 was €1.94 billion, down from €2.03 billion year-over-year, mainly due to deflation and adverse GBP/EUR exchange rates.

• Adjusted EBITDA rose 20.2% to €157.4 million, with margin up to 8.1% from 6.2%/6.3% year-over-year.

• Normalised EBIT increased 140% year-over-year, driven by procurement synergies and lower input costs.

• Strong free cash flow generation of €163.4 million, with EBITDA to free cash flow conversion at 104%.

• Strategic focus on margin-driven growth, operational efficiency, and disciplined portfolio management, supported by integration of acquisitions and exits from low-margin contracts.

Financial highlights

• Revenue declined 4.4–4.5% year-over-year, impacted by a -5.8% currency exchange effect and deflationary pricing.

• Adjusted EBITDA margin improved to 8.1% from 6.2%/6.3% year-over-year.

• Normalised net income (excluding business combination income) was €39.2 million, up from -€4.6 million; reported net income was €106.2 million, down from €153.4 million due to lower business combination income.

• Net debt (ex-IFRS 16) improved to €236.3 million from €246.2 million at year-end 2024; adjusted net debt at 30 September 2025 was €332 million, improved from €346.2 million.

• Free cash flow conversion rate at 104% (group), with net cash flow from operating activities at €217.7 million.

Outlook and guidance

• Q4 expected to be the strongest quarter, with full-year EBITDA guidance confirmed at GBP 210–220 million.

• Top-line growth expected to be flattish for the year, with improvement in Q4; midterm ambition includes >3% organic revenue CAGR from 2026 and 300bps margin improvement.

• Targeting over 20% return on capital employed and annual CAPEX spend of £30–35 million.

• Leverage expected to remain ≤2.0x.

• Continued focus on cost control, financial management, and free cash flow generation to support growth and shareholder remuneration.