Fnac Darty (FNAC) H2 2025 earnings summary

Executive summary

• Revenue increased 0.7% year-over-year to €10.33 billion, outperforming the market by 2 points, with strong growth in services and solid performance in Spain and Portugal.

• Operating margin reached 2.0% and free cash flow was €145 million, reflecting solid operational and financial metrics.

• The Beyond Everyday strategic plan was launched, targeting operating margin of at least 3% and cumulative free cash flow of €1.2 billion by 2030.

• Integration of Unieuro in Italy is progressing well, contributing significantly to EBIT growth and targeting €20 million in synergies by end-2026.

• EP Group launched a takeover bid at €36/share, a 19% premium, with unanimous board support.

Financial highlights

• Gross margin improved to 28.0% (+50 bps year-over-year), driven by services and omnichannel strategy.

• EBITDA rose by €15 million to €667 million; operating profit stood at €203 million.

• Net income from continuing activities was -€67 million, impacted by non-cash impairment and restructuring; adjusted net income was €28 million.

• Free cash flow from operations (excluding IFRS 16) was €145 million.

• Net financial debt (excl. IFRS 16) was €958 million; net cash position €146 million; strong liquidity and €600 million undrawn credit lines.

Outlook and guidance

• 2026 investments expected to be similar or slightly higher than 2025, averaging €200 million annually through 2030.

• Dividend of €1 per share proposed, ex-date June 3, payment June 5, maintaining payout ratio above 40%.

• Guidance for increased operating margin and free cash flow in 2026; 2030 targets reaffirmed, including ≥3% margin and >€1.2bn cumulative FCF.