LVMH (MC) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 reached €80.8 billion, doubling over the past decade, with organic growth slightly negative for the year but positive in H2, showing resilience amid global economic and geopolitical disruptions.

• Operating margin stood at 22%, well above the 20-year average, with profit from recurring operations at €17.8 billion, down 9% mainly due to currency impacts.

• Free cash flow rose 8% to €11.3 billion, reflecting strong cost control and disciplined capital allocation.

• Net profit group share was €10.9 billion, down 13% year-over-year, mainly due to negative currency effects and higher taxes.

• Major economic and social contributions included over 211,000 employees and €5.5 billion in corporate tax paid.

Financial highlights

• Revenue declined 5% reported, 1% organic, with Q4 organic growth of +1%; gross margin fell to €53.5 billion.

• Operating profit dropped 9%, with most of the decline attributed to currency headwinds; net profit group share down 13%.

• Operating expenses fell 4%, with G&A down 5% and marketing expenses reduced.

• Net debt decreased to €6.9 billion, below 10% of sales, and net debt to equity ratio was 9.9% at year-end.

• Dividend proposed at €13 per share, stable year-over-year.

Outlook and guidance

• Confidence for 2026 remains high despite ongoing macroeconomic and geopolitical uncertainties.

• Focus on expanding global leadership, innovation, and operational efficiency, with continued commitment to environmental protection and corporate social responsibility.

• Currency and tariff headwinds are expected to persist into 2026, with the full impact of tariffs to be felt next year.