Fnac Darty (FNAC) H2 2025 earnings summary

Executive summary

• Revenue increased 0.7% year-over-year to €10.33 billion, outperforming the French market by 2 percentage points, with strong service and online growth 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 growth in high-value products, subscription services, and customer experience improvements through 2030.

• Integration of Unieuro in Italy is progressing well, contributing significantly to operating income growth in Europe and targeting €20 million in synergies by 2026.

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

Financial highlights

• Gross margin improved by 50 basis points year-over-year to 28.0%, supported by service activities and Darty Max.

• 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 would be +€28 million.

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

• Net financial debt (excluding IFRS 16) at €958 million; net cash position €146 million; strong liquidity with €1.7 billion at end-2025 and undrawn credit lines of €600 million.

Outlook and guidance

• 2030 targets: operating margin of at least 3%, cumulative free cash flow of at least €1.2 billion, and nearly 4 million service subscribers.

• 2026 investment 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, 2026, payment June 5, 2026, consistent with prior year.

• Guidance for increased operating margin and free cash flow in 2026, with continued focus on strategic plan execution.