Sogefi (SGF) Q4 2025 earnings summary

Executive summary

• Revenues declined to €984.8 million in 2025, mainly due to weaker European markets and FX impacts, but showed resilience in USMCA, South America, and China.

• Adjusted EBIT rose to €59.1 million (6.0% margin), with margins improving at both contribution and adjusted EBITDA/EBIT levels.

• Net income dropped to €10.3 million, impacted by lower free cash flow and increased non-recurring charges.

• Free cash flow was positive at €12.8 million to €21.1 million, lower than prior year due to absence of one-off items from Filtration disposal.

• Net debt increased to €56.3 million after €17.9 million to €80 million in dividends, mainly reflecting dividend distribution and reduced factoring.

Financial highlights

• Global sales were flat in volume but down in value due to FX; Europe declined, while North and South America and China outperformed.

• Adjusted EBITDA margin improved to 13.8% from 13.2% year-over-year.

• Adjusted EBIT margin increased to 6.6% or 6.0% of sales from 5.4% year-over-year.

• Net debt/EBITDA ratio increased due to higher dividends and lower factoring, with €125–176 million in committed credit lines available.

• Net income margin was 1.0% in FY 2025.

Outlook and guidance

• Revenue expected to decline low to mid-single digits in 2026, including a 1–2% FX impact.

• Adjusted EBIT margin projected to remain in line with 2025, barring new negative events.

• Outperformance expected in North America and China, with Europe slightly below market and South America flat.

• No dividend proposed for 2025.

• Market uncertainty remains high due to geopolitical, economic, and tariff risks; sharper volume declines possible.