EXEL Industries (EXE) H1 2025 earnings summary

Executive summary

• Revenue for the half-year ended 03/31/2025 was €443.4 million, down 10.0% year-over-year, mainly due to lower volumes in Agricultural Spraying.

• Net income for the period was €1.5 million, supported by cost reductions and inventory optimization, compared to €4.8 million in the prior year.

• Operating cash flow was €9.2 million, but net cash flow from operating activities was negative at €-24.1 million due to significant working capital outflows.

• Focus remained on debt reduction and cash flow generation, with net financial debt improving by €38 million year-over-year.

Financial highlights

• Gross margin pressure evident as current operating results dropped to €6.5 million (1.5% of revenue) from €16.0 million (3.3%) year-over-year.

• Recurring EBITDA was €20.3 million (4.6% of revenue), down from €30.5 million (6.2%) in the prior year.

• Net financial expense improved to -€4.7 million, aided by lower indebtedness and interest rates.

• Capex reached €15.6 million, including investment in a new plant in Stains, France.

• Earnings per share for the half-year were €0.2, down from €0.7 in the previous year.

• Total assets at 03/31/2025 were €932.5 million, down from €994.8 million at 03/31/2024.

• Cash and cash equivalents at period end were €29.1 million, compared to €34.5 million a year earlier.

Capital allocation and financing

• Net cash flow from financing activities was positive at €10.8 million, reflecting increased borrowings and reduced repayments.

• Short-term borrowings and financial debt stood at €130.2 million, down from €162.0 million year-over-year.

• Net dividends paid during the period totaled €7.8 million.

• Ongoing investment policy with €15.6 million in capex, including new plant construction.

• Focus on debt reduction and cash flow generation through inventory and WCR optimization.