Q3 2025 Trading Update

Essentra plc, a leading global provider and manufacturer of essential components and solutions, today issues a trading update for the third quarter, covering the thirteen weeks ended 27 September 2025 ("Q3" or the "period").

Trading performance

Revenue in Q3 increased by 5.9% at constant currency on a like-for-like¹, working day-adjusted basis, reflecting year-on-year recovery as certain end-market conditions slowly improve and comparatives to the prior year ease. The improved performance was delivered whilst continuing to navigate mixed market conditions, as indicated by widely reported manufacturing PMI trends. Group new order intake increased by 5.6% in Q3 compared to the prior year, with September returning to Q2 2025 levels following seasonally softer trading in July and August.

Consistent with H1 2025, EMEA revenue performance during the period was mixed. The region returned to year-on-year growth against soft prior-year comparatives, further supported by a strong relative performance in Turkey, which continues to benefit from faster-growing end-markets, the implementation of pricing initiatives and local currency devaluation. EMEA ex-Turkey experienced subdued demand across the quarter, particularly in higher margin UK and Western European geographies. The Americas maintained its year-on-year growth momentum, delivering revenue in the period in line with Q2 levels. Performance was supported by pricing initiatives and increased stability within distributor end-channels. The APAC region continues to be driven by market dynamics in China, supported by a number of business wins in faster-growing end-markets.

Management remains focused on delivering operational efficiencies in the near term, while selectively reinvesting for growth in line with regional demand. In EMEA, investment in service continues alongside ERP deployment, while pricing initiatives are progressing, particularly in the Americas. The previously announced footprint rationalisation measures, as outlined at the HY25 results, remain on track.

The Group's financial position remains robust. FY25 leverage is expected to remain within the medium-term target range of 0.5x to 1.5x, supported by strong operating and free cash flow conversion. Essentra's acquisition pipeline remains strong, with management actively engaged in reviewing a number of bolt-on opportunities.

Outlook

As expected, Essentra delivered year-on-year revenue growth and an improving order intake through the third quarter which has continued into October. While the Group remains cautious about the timing of any material recovery in market conditions, actions taken to streamline the cost base and optimise operations will protect profitability and allow Essentra to benefit from significant operational gearing as market conditions improve.

Given the strength of Essentra's operations in Turkey, which generate lower margins compared to the rest of EMEA, the Group's overall gross margin was slightly weaker than expected in the period and this effect is likely to continue into the final quarter of the year. As such, management now anticipates that the full year adjusted operating margin will remain consistent with the first half of the year.

The Board remains confident in the Group's ability to deliver its medium-term strategic and financial targets underpinned by continued progress on operational initiatives and a strong pipeline of value-enhancing organic and inorganic growth opportunities.

• The term "like-for-like" describes the performance of the business on a comparable basis, adjusting for the impact of acquisitions, disposals and foreign exchange

Cautionary forward-looking statement