Ocado Group (OCDO) H2 2025 earnings summary

Executive summary

• Group revenue rose 12% year-over-year, reaching £1.36bn, with strong performances across Technology Solutions, Logistics, and Ocado Retail JV, and adjusted EBITDA up £66m to £178m.

• Implemented cost and capital discipline, realigned organisational structure, and 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 expansion and operational efficiency.

Financial highlights

• Technology Solutions revenue increased 13% to £561m; Logistics revenue up 11% to £800m; group revenue up 12% year-over-year.

• Adjusted EBITDA grew by £66m to £178m, driven by higher contributions from both segments; statutory earnings before tax at £403m, benefiting from deconsolidation of Ocado Retail.

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

• Ended the year with liquidity exceeding £1bn, including £740m cash and £300m undrawn RCF, further bolstered by a £279m post-year-end inflow.

• Interest costs increased by £48m year-over-year; plans in place to reduce gross debt.

Outlook and guidance

• Targeting cash flow positive in H2 2026 and full-year positive cash flow in FY27.

• FY26 guidance targets Technology Solutions revenue around £500m and Logistics high mid-single digit % growth.

• Technology and SG&A spend to decline by £100–£150m by FY27, with £150m in aggregate cost savings.

• CapEx to reduce to £200–£250m annually; Technology Solutions adjusted EBITDA margin expected at ~30%.

• Expecting 125–130+ live modules by FY27, generating around £400m contribution.