Azelis Group (AZE) H1 2025 earnings summary

Executive summary

• Revenue reached €2.2bn in H1 2025, up 0.6% year-over-year, with 1.2% organic growth and 2.2% from acquisitions, offset by FX headwinds and market volatility.

• EMEA delivered strong growth, offsetting slowdowns in the U.S. and APAC; business model resilience supported by higher cash flows despite margin compression.

• Free cash flow grew 10.8% to €151m, with cash conversion improving by over 10 percentage points to 63.8%.

• Three acquisitions (Solchem, S Amit, ACEF) expanded presence in Spain, India, and Italy, with combined 2024 revenue over €100m.

• Strategic focus remains on innovation, sustainability, digitalization, and cost savings to drive long-term value.

Financial highlights

• H1 2025 revenue: €2.2bn (+0.6% year-over-year, +1.2% organic); gross profit €515m, down 2.2%, with margin at 23.9%.

• Adjusted EBITA/EBITDA margin at 10.9%, with adjusted EBITA down 7.7% to €234m.

• Net profit for H1 2025 was €85.5m, down 14.6% year-over-year.

• Free cash flow of €151m, with an 11 percentage point increase in cash conversion ratio to 63.8%.

• Net financial expense decreased 3.4% to €69.9m; effective tax rate at 29%.

Outlook and guidance

• Macro uncertainty from tariffs, geopolitical instability, and regional conflicts continues to weigh on demand.

• Cost-saving program (annualized run-rate €20m) to deliver half of savings in H2 2025; focus on cost control and cash preservation.

• Asset-light model and disciplined cost/working capital management to support resilience and cash generation.

• Long-term sector fundamentals remain attractive; M&A to resume once leverage stabilizes.

• Strong positioning to capitalize on industry shifts, supported by global presence and alignment with demand trends.