De'Longhi (DLG) Q2 2025 earnings summary

Executive summary

• H1 2025 revenues reached €1,584.2 million, up 11.3% year-over-year, with robust growth in both Professional (+53.5%) and Household (+6.5%) divisions, and all regions contributing positively.

• Adjusted EBITDA rose 17.6% to €240.7 million (15.2% margin), with net income up 9.8% to €116.6 million.

• Professional Division delivered over 20% pro-forma growth in both Q1 and Q2, with adjusted EBITDA margin above 25%.

• Net cash position reached €346 million as of June 2025, supporting increased working capital and shareholder returns.

• Continued high-impact brand activations and marketing investments, including global campaigns and event sponsorships, to boost visibility.

Financial highlights

• H1 2025 revenues: €1,584.2 million (+11.3% YoY); Q2 revenues: €829.0 million (+8.4% YoY).

• Adjusted EBITDA: €240.7 million (15.2% margin), up from 14.4% in H1 2024; EBIT: €167.9 million (10.6% margin).

• Net industrial margin in H1: €837.3 million (52.9% of revenues, up from 51.1%).

• Net income for H1: €116.6 million, up 9.8% year-over-year.

• Free cash flow before dividends, buybacks, and acquisitions: €296 million over 12 months; H1 cash flow negative €45.8 million due to inventory build-up.

Outlook and guidance

• Upgraded 2025 guidance: revenue growth of 6–8% and adjusted EBITDA of €590–610 million.

• Management remains cautious due to ongoing geopolitical, tariff, and macroeconomic uncertainties.

• Tariff impact for 2025 estimated at €50 million net, with €15 million negative EBITDA impact in H2; mitigation expected through pricing and operational flexibility.

• Ongoing investments in advertising and promotion to support growth, with controlled Opex increases.