Ocado Group (OCDO) H2 2025 earnings summary

Executive summary

• Group revenue rose 12% year-over-year to £1.36bn, with adjusted EBITDA up £66m to £178m and liquidity exceeding £1bn at year-end.

• Technology Solutions and Logistics segments delivered double-digit revenue growth, while Ocado Retail JV revenue grew 15% year-over-year.

• Addressed early network challenges, including site closures in North America, to strengthen long-term partnerships.

• Focused on turning cash flow positive in the second half of 2026, with full-year cash generation targeted for FY27.

• Evolved technology platform and commercial model to support renewed global opportunities and operational efficiency.

Financial highlights

• Technology Solutions revenue increased 13% to £561m; Logistics revenue rose 11% to £800m.

• Group adjusted EBITDA reached £178m, up from £112m in FY24, driven by higher contributions from both segments.

• Statutory earnings before tax reached £403m, benefiting from a significant adjusting item related to the deconsolidation of Ocado Retail.

• Underlying cash outflow improved by £99m to £100m, supported by £113m proceeds from a Kroger Letter of Credit.

• Liquidity at year-end was £1.04bn, with £740m cash and £300m undrawn RCF, further bolstered by a £279m inflow post year-end.

Outlook and guidance

• Targeting cash flow positivity in the second half of 2026 and full-year positive cash flow in FY27.

• Tech Solutions revenue guidance of around £500m and Adjusted EBITDA margin of approximately 30%.

• CapEx expected to decline from £250m in FY25 by £100–£150m by FY27, with further reductions planned.

• SG&A and technology costs to be reduced by £150m by FY27, with total spend targeted at £250m.