De'Longhi (DLG) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenues of €755.2 million, up 14.6% year-over-year, with strong growth in both household (+7.2%) and professional (+22% pro-forma) divisions, driven by higher sales volumes and the full consolidation of La Marzocco.

• Profitability improved with adjusted EBITDA up 24% to €116.3 million (15.4% of revenues), and net income increased 11.7% to €57.4 million, supported by favorable product mix and professional business growth.

• Positive net financial position of €482.8 million, improved from €307.6 million a year earlier, even after a €36M share buyback.

• All geographies delivered positive turnover, with notable strength in Europe, Americas, Middle East, and Pacific.

• Product innovation and design excellence recognized with multiple international awards and a major global campaign featuring Brad Pitt.

Financial highlights

• Revenues: €755.2 million (+14.6% year-over-year); net industrial margin: €394.8 million (52.3% of revenues), up from 50.9%.

• Adjusted EBITDA margin rose to 15.4% from 14.2% in Q1 2024; adjusted EBITDA was €116.3 million, up 24%.

• Net income attributable to the group was €57.4 million (7.6% margin), up 11.7% year-over-year.

• Free cash flow before dividends, buybacks, and acquisitions was negative €124.2 million in Q1, reflecting seasonal inventory build.

• Net financial position at €482.8 million, up €175.2 million year-over-year.

Outlook and guidance

• 2025 guidance reaffirmed: turnover growth of 5–7% and adjusted EBITDA of €580–600 million, with stronger first half expected.

• Tariff impact for 2025 estimated at €15 million, fully incorporated in guidance.

• Cautious approach maintained due to ongoing global economic uncertainty and market volatility.