FY2025 Pre-close Trading Update
FY25 revenue expected to grow 2.5% on constant currency like-for-like basis, adjusted operating profit in line with expectations.
vs expectations: in line
- FY25 revenue growth (constant currency, like-for-like) 2.5%
- FY25 revenue growth (reported) flat
- Q4 revenue growth (constant currency, like-for-like, working day-adjusted) 4.7%
- Expected adjusted operating profit range £32.0m to £32.4m
- Pre-IFRS 16 net debt leverage <1.5x
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Essentra plc, a leading global provider and manufacturer of essential components and solutions, today provides a trading update for the financial year ended 31 December 2025 ("FY25") and the fourth quarter covering the thirteen weeks ended 31 December 2025 ("Q4" or the "quarter"), ahead of the announcement of its full year results on 17 March 2026.
In Q4, the Group delivered year-on-year revenue growth and improved order intake. The Board expects adjusted1 operating profit for FY25 to be in line with market expectations2.
Trading performance
Group revenue for FY25 is expected to grow by 2.5% on a constant currency, like-for-like3 basis. On a reported basis, including the impact of foreign exchange, Group revenue is expected to be flat year-on-year.
Group revenue in Q4 increased by 4.7% on a constant currency, like-for-like3, working day-adjusted basis. Consistent with the Q3 performance, revenue growth continues to be underpinned by pricing, strategic targeting of faster-growing end-markets such as energy transformation and digital infrastructure, as well as the easing of prior year comparatives.
EMEA delivered year-on-year high single digit growth in the quarter, driven by a strong relative performance in Turkey, benefiting from more resilient end-market sectors and pricing. EMEA excluding Turkey delivered moderate growth against soft prior year comparatives despite mixed market conditions. The Americas delivered low single digit growth in the quarter, driven by pricing initiatives and stable distributor end-channels. The APAC region saw a slight decline in the quarter as anticipated, due to large one-off projects in the prior year driven by market dynamics in China.
As guided, Group adjusted operating margins for FY25 remain consistent with the first half of the year. Management continues to focus on delivering operational efficiencies in the near term and the Group remains well-placed to benefit as the market recovers.
On 18 December 2025, the Group announced the acquisition of Device Technologies, a US-based designer, manufacturer and distributor of specialty cable protection devices. Consistent with the Group's inorganic growth strategy, this acquisition complements Essentra's existing product expertise and extends Essentra's manufactured product offering. Early integration plans are progressing as expected. The acquisition pipeline remains strong and management continue to review certain bolt-on opportunities.
The Group's balance sheet and cash generation remain strong. FY25 pre-IFRS 16 net debt leverage guidance is unchanged and is expected to close within the targeted leverage range of <1.5x The Group retains headroom into 2026 to support operational and strategic value-enhancing growth initiatives.
- The term "adjusted" is on a continuing operations basis, before amortisation of acquired intangible assets and adjusting items
- Company compiled market expectations for 2025 adjusted operating profit is a range of £32.0m to £32.4m
- The term "like-for-like" describes the performance of the business on a comparable basis, adjusting for the impact of acquisitions and foreign exchange
Cautionary forward-looking statement
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