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.

• Transformation into a MedTech and data-driven group accelerated, with AI glasses and wearables at the core of the growth strategy; over 7 million AI glasses sold in 2025.

• Free cash flow reached a record €2.8 billion, up €400 million year-over-year, despite headwinds from U.S. tariffs and adverse FX.

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

• Updated five-year outlook targets solid, aligned revenue and operating profit growth, driven by MedTech and AI healthcare platform.

Financial highlights

• Q4 revenue up 18.4% at constant currency; all major regions posted double-digit growth.

• Adjusted gross margin was 60.9%, down 260 bps year-over-year, mainly due to tariffs and AI-glasses dilution.

• Adjusted operating margin was 16.0% at constant FX, down 70 bps year-over-year.

• Adjusted net profit margin was 11.3% at constant FX, down 50 bps year-over-year.

• Net debt/EBITDA at 1.7x, maintaining a strong balance sheet.

Outlook and guidance

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

• 2026 expected to see annualization of tariff impacts and continued FX headwinds.

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

• January 2026 started with double-digit revenue growth.