Llorente & Cuenca (LLYC) H2 2025 earnings summary

Executive summary

• Total income for 2025 was €129.7M, down 10.5% year-over-year, reflecting a challenging environment and normalization of client-billable expenses.

• Net profit remained stable at €6.8M, with earnings per share (diluted) at €0.60, maintaining parity with 2024.

• Results were impacted by a 42-day US government shutdown and new tariff policies in Mexico, leading to operational slowdowns and customer investment reductions.

• Strategic moves included acquiring 60% of Digital Solvers, completing the 100% acquisition of Lambert, and divesting from beBartlet.

• Strategic plan 26-27 launched, emphasizing profitable growth, AI-driven innovation, and organizational simplification, including elimination of global and supra-regional positions.

Financial highlights

• Operating income/revenues for 2025 were €89.5M, down 3.8% year-over-year.

• Recurring EBITDA fell 20.8% to €13.8M, with a margin of 15.4%.

• Reported EBITDA was €12.4M, down 15.3% from the previous year.

• EBIT dropped 36.7% to €5.3M.

• Net financial debt stood at €33.5M, with a net debt/recurring EBITDA ratio of 2.4x.

Outlook and guidance

• Management highlighted efficient working capital management and strong cash generation, supporting balanced liquidity.

• The company is focused on reinvesting capital from divestments into strategic priorities.

• 2026 targets: operating revenues of €88–90M and recurring EBITDA of €18–18.5M.

• 2027 targets: operating revenues of €95–100M and recurring EBITDA of €23–25M.

• Annual operating expense reduction of €8.8M expected from cost control measures.