TXT e-solutions (TXT) Q4 2025 earnings summary

Executive summary

• Achieved record revenues of €394.3 million in 2025, up 29.5% year-over-year, with strong organic growth of 12% and significant contribution from acquisitions.

• EBITDA rose 53.3% to €60 million, with margin improving to 15.2%, reflecting operational efficiencies and margin expansion.

• Adjusted net profit increased 72.4% to €34.5 million, representing 8.8% of revenue; adjusted EBIT up 61.2% to €47.8 million.

• Proposed dividend of €0.35 per share, a 40% increase over last year, reflecting robust profitability.

• Strategic investments in AI, Smart Solutions, and M&A, with €23 million invested in 2025, underpin sustainable growth.

Financial highlights

• Gross margin improved to 38.1% (from 33.5% in 2024), driven by operational efficiency and higher-value activities.

• R&D investment exceeded €23 million (+56.5% YoY); commercial costs rose 43% to support growth.

• Adjusted net financial debt at €98.8 million at year-end 2025, up from €90.7 million.

• Earnings per share rose to €1.83 (from €1.24 in 2024); dividend yield at 1.2%.

• Free cash flow conversion at about 50% of EBITDA; operating cash flow conversion at 75%.

Outlook and guidance

• 2026 guidance targets EBITDA above €65 million, ~10% organic revenue growth, and over €6 million EBITDA from new M&A.

• Continued focus on Smart Solutions, Aerospace, and Industrial/IoT segments, with Digital Advisory and Software Engineering expected to maintain double-digit growth.

• Leverage ratio to remain below 2x EBITDA, maintaining financial flexibility.

• Macroeconomic environment remains moderately positive but with persistent uncertainties and geopolitical risks.