SIG (SHI) Q4 2025 TU earnings summary

Executive summary

• Full year sales were flat compared to the prior year, with a 1% increase in volumes and subdued demand across all markets, especially in the UK, Germany, and Ireland.

• Operating profit increased by £7 million to approximately £32 million, in line with expectations.

• Significant cost savings and working capital improvements were achieved, supporting robust liquidity.

• Strategic focus is on procurement, portfolio simplification, and optimizing operating leverage.

• Management structure for UK Specialist Markets was removed in Q4, and Mayplas business was closed as part of portfolio review.

Financial highlights

• Group operating profit rose to £32 million, £7 million higher year-over-year.

• Free cash outflow improved to £12 million from £39 million in 2024.

• Year-end liquidity stood at £171 million, with £81 million in cash and £90 million undrawn RCF.

• Leverage remained flat at 4.7x year-over-year.

• Operating expenses reduced by £39 million (6%) due to restructuring and productivity initiatives.

Outlook and guidance

• Focus for 2026–2027 is on maintaining robust liquidity, further cost reductions, and working capital efficiency.

• Targeting 3%-5% operating margins through the cycle by 2030, with sustainable positive free cash generation expected at 3% margin.

• No acquisitions planned for 2026 or 2027; focus remains on organic growth and portfolio optimization.

• Input cost inflation expected to be low single digits, with pricing assumed to remain flat.

• More detailed 2026 outlook to be provided with full FY25 results in March 2026.