EssilorLuxottica (EL) H2 2025 earnings summary

Executive summary

• Revenue reached €28,491 million in FY 2025, up 11.2% at constant exchange rates, with Q4 growth of 18.4% and double-digit gains across all regions and segments.

• Adjusted operating profit was €4,459 million (16.0% margin at constant FX), impacted by US tariffs and AI-glasses, while adjusted net profit rose 7.2% to €3,157 million.

• Free cash flow reached a record €2.8 billion, €400 million higher than prior year, and a dividend of €4.00 per share is proposed, with a scrip option.

• Strategic transformation into a MedTech and data-driven group, with AI glasses, medical services, and myopia management as key growth drivers.

• Updated five-year outlook targets solid, aligned growth in revenues and operating profits, driven by scaling of AI-driven healthcare platform.

Financial highlights

• Adjusted revenue: €28,491 million (+11.2% at constant FX); Q4 revenue: €7,600 million (+18.4% at constant FX).

• Adjusted gross margin: 60.9% (down 260 bps year-over-year), impacted by tariffs and AI-glasses mix.

• Adjusted operating margin: 16.0% at constant FX (down 70 bps year-over-year); adjusted net margin: 11.3% at constant FX (down 50 bps year-over-year).

• Net profit rose to €3,157 million, up 7.2% year-over-year; IFRS net profit: €2,315 million.

• Free cash flow: €2.8 billion; net debt: €10,853 million; net debt/EBITDA: 1.7x.

Outlook and guidance

• Five-year plan targets solid, aligned growth in revenues and operating profits, driven by medtech and AI-driven healthcare platform.

• 2026 expected to see annualized tariff impact and continued FX headwinds.

• AI glasses, Stellest myopia management, and hearing aids to drive growth in 2026.

• January 2026 started with double-digit revenue growth.