EssilorLuxottica (EL) H1 2025 earnings summary

Executive summary

• Revenue grew 7.3% year-over-year at constant exchange rates in H1 2025, reaching €14,024 million, with strong contributions from all regions and segments, especially EMEA and Direct to Consumer.

• AI glasses (Ray-Ban Meta) sales surged over 200% year-over-year; Oakley Meta launched, and Nuance Audio expanded to 10,000 locations.

• Strategic acquisitions in Medtech and retail, including Optegra Eye Clinics, Pulse Audition, Cellview Imaging, and Malaysian retail chains, expanded the group's reach.

• Dividend of €3.95 per share for 2024, with 70% of shareholders opting for scrip dividend; €1 billion bond issued in June 2025, maturing 2030.

• Sustainability initiatives advanced, including new LEED Gold-certified facilities and expanded global vision care access.

Financial highlights

• H1 2025 revenue: €14,024 million (+7.3% constant FX, +5.5% current FX); Q2 2025 revenue: €7,175 million (+7.3% constant FX).

• Adjusted operating margin stable at 18.1–18.3% in H1; adjusted operating profit: €2,532 million.

• Adjusted net profit: €1,799 million (+6.1% at constant rates); free cash flow: €951 million.

• Adjusted gross margin: 63.1–64.3%, diluted by 80–90 basis points due to US tariffs and product mix.

• Net debt: €11,263 million (net debt/EBITDA: 1.7x); cash and cash equivalents: €2.79 billion.

Outlook and guidance

• Targeting mid-single-digit annual revenue growth through 2026 (constant FX), aiming for €27–28 billion revenue and 19–20% adjusted operating margin by period end.

• Continued focus on innovation in AI, smart eyewear, and myopia management, with further market rollouts and capacity expansion planned.

• Mitigation of tariff headwinds through supply chain diversification and selective price increases, with greater impact expected in H2 2025.