Tarkett (TKTT) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue rose 0.9% year-over-year to €1,573.5 million, with organic sales down 0.2% due to stable volumes and selective price adjustments; Q2 revenue up 1.5% year-over-year.

• Adjusted EBITDA increased 4.5% to €154.9 million (9.8% margin), driven by productivity gains and Sports acquisitions.

• EBIT fell 14% to €51.5 million, impacted by higher restructuring costs and lower North America performance.

• Net income attributable to shareholders was -€0.2 million, down from €18 million in H1 2024; diluted EPS at €0.00.

• Free cash flow was -€134.2 million, reflecting seasonal working capital needs and higher inventory, compared to -€75.9 million in H1 2024.

Financial highlights

• Adjusted EBITDA margin improved to 9.8% from 9.5% year-over-year.

• EBIT margin declined to 3.3% from 3.8% year-over-year.

• Net financial debt at €617 million, leverage ratio improved to 1.8x adjusted EBITDA from 2.0x in June 2024.

• Capital expenditure was €38.2 million, up from €32.5 million in H1 2024.

• Liquidity at €557 million, including €223 million in cash and €278 million in undrawn RCF.

Outlook and guidance

• H2 2025 expected to be similar to H1, with continued market uncertainty and weak demand in Europe and the US.

• Backlog in North America expected to clear in Q3 as logistics normalize.

• Medium-term market outlook remains positive, especially for Sports, but geopolitical and macroeconomic risks persist.