Origin Enterprises (OIZ) H2 2025 earnings summary

Executive summary

• Reported strong FY2025 results with operating profit up 8.7% to €90 million and group operating profit (including JVs) up 10.1% to €99 million, driven by resilience in agriculture and 39% growth in Living Landscapes.

• Adjusted diluted EPS increased 12.8% to €0.5421, exceeding guidance, and total dividend proposed up 3% to €0.173.

• Free cash flow surged to €60.8 million, with a conversion rate of 117.9%, supporting €19.7 million returned to shareholders.

• Continued investment in innovation, sustainability, and leadership, including a new glasshouse facility and strengthened management; Board chair to step down before 2026 AGM.

• Living Landscapes segment operating profit grew 39% to €16.6 million, now 18.4% of group profit, reflecting successful diversification.

Financial highlights

• Group revenue reached €2.1 billion, up 3.1% year-over-year on a constant currency basis, with 2.3% volume growth and 0.9% from acquisitions.

• Operating margin improved to 4.3%, up 20 bps; EPS rose 12.8% to €0.5421.

• Net debt at year-end was €70.8 million, or 0.58x EBITDA.

• ROCE improved to 12% (up 80 bps year-over-year).

• Profit for the year rose to €52.8 million from €40.4 million, including €2.1 million net exceptional gain.

Outlook and guidance

• Strategic focus to FY2026 includes optimizing agriculture, scaling Living Landscapes to 30% of group profit, and broadening the product portfolio.

• Lower CapEx anticipated in FY2026 as major projects conclude; continued investment in digital integration and sustainability.

• Predictability of earnings expected to improve over a five-year horizon, despite ongoing weather-related volatility.

• Disciplined capital allocation and further investment in margin-accretive organic and M&A growth.