Fabbrica Italiana Lapis ed Affini (FILA) Q2 2025 earnings summary

Executive summary

• H1 2025 revenues declined 5.6% year-over-year to €314.5M, mainly due to weak US and UK demand, reduced government funding, tariffs, and negative forex, while Central & South America, especially Mexico, showed growth.

• Adjusted EBITDA fell 7.7% to €65.4M, with margin stable at 20.8% due to cost containment and operational efficiencies.

• Adjusted net profit dropped to €22.5M from €32.0M, mainly due to €7.0M in forex losses and non-recurring reorganization costs.

• Free cash flow to equity was negative at -€70.1M, reflecting seasonality, tariffs, higher capex, and adverse forex.

• Net financial position improved to €288.8M, a reduction of €80.3M year-over-year, mainly from asset sales including a 4.57% DOMS stake.

Financial highlights

• Revenue: €314.5M in H1 2025 vs €333.3M in H1 2024 (-5.6%), with a €9.0M negative currency impact.

• Adjusted EBITDA: €65.4M vs €70.8M (-7.7%), margin 20.8% vs 21.3%.

• Adjusted operating profit was €46.6M, down 12.1% from H1 2024.

• Free cash flow to equity: -€70.1M vs -€40.3M, due to higher working capital and investments.

• Net bank debt: €236.3M, down €73.3M year-over-year.

Outlook and guidance

• FY 2025 free cash flow to equity guidance confirmed at €40–50M, despite expected pressure on revenue and EBITDA from weak consumption, forex, and tariffs.

• H2 2025 organic performance anticipated to be broadly in line with the prior year.

• Medium-term outlook is positive, with confidence in recovery as macro instability and tariff uncertainty ease.