Cembre (CMB) Q2 2025 earnings summary

Executive summary

• Consolidated sales for H1 2025 reached €124.3 million, up 4.0% year-over-year, with net profit rising 8.6% to €22.6 million and EBITDA margin improving to 31.0%.

• Growth was driven by European and non-European markets, while Italian sales declined.

• The group maintained leadership in Europe for electrical connectors, with a diversified product mix and global client base.

• Ongoing investments in automation, capacity expansion, and innovation, including new industrial buildings and a €42M project for electrical connectors.

• The average number of employees increased to 930 from 888 in H1 2024.

Financial highlights

• EBITDA increased 10.4% year-over-year to €38.5 million (31.0% margin), and EBIT rose 11.3% to €31.5 million (25.4% margin).

• Net profit margin improved to 18.2% (up from 17.4%), and basic/diluted EPS rose to €1.34 from €1.24.

• Net financial position shifted from a €2.0 million surplus at end-2024 to a €23.8 million deficit at June 30, 2025, mainly due to €31.6 million in dividends and €11.4 million in capital expenditure.

• Cash and cash equivalents at period end were €16.4 million, down from €19.4 million in H1 2024.

• Net operating working capital rose to €103.2 million (44.9% of sales).

Outlook and guidance

• Despite economic and geopolitical uncertainties, consolidated revenues and positive economic results are expected for 2025.

• Focus remains on business development through new product launches, R&D, and increased penetration in foreign markets, especially the US and Germany.

• Continued cost management and operational efficiency via automation and process innovation.