Ontex Group (ONTEX) Q4 2025 earnings summary

Executive summary

• Revenue declined 4.9% like-for-like to €1,762 million in 2025, mainly due to lower baby care volumes and challenging market conditions; adjusted EBITDA margin dropped by 2 percentage points to 10%.

• Free cash flow was negative at €(25) million, but net debt was reduced by 6% to €577 million, aided by €131 million in divestment proceeds.

• Leverage increased to 3.3x due to lower EBITDA, but remains within covenant limits.

• Strategic review initiated and new CEO appointed to sharpen focus, maximize value creation, and set priorities for 2026.

• Transformation milestones included divestment of emerging markets, Belgian footprint progress, and US capacity expansion.

Financial highlights

• Baby care volumes dropped 12% year-over-year, with softness in both Europe and North America due to low demand and A-brand promotions.

• Adult care volumes grew by about 1%, now representing 47% of revenues, while feminine care volumes declined by about 2%.

• Adjusted profit from continuing operations was €34 million, down from €76 million in 2024.

• CapEx was €81 million, or about 4.3%-4.5% of revenue, focused on growth and efficiency.

• Net loss for the period was €(173.5) million, mainly due to a €190 million non-cash loss from discontinued operations.

Outlook and guidance

• 2026 market conditions expected to remain challenging, especially for baby care, with low consumer confidence and continued A-brand promotions.

• Adjusted EBITDA targeted to improve by about 10%, with gradual improvement expected from Q2 onwards.

• Free cash flow after financing expected to return to positive territory, and leverage to fall to 3x or below by year-end.

• CapEx guidance maintained at 3.5%-4.5% of revenue.

• Non-recurring cash outflows for 2026 expected at around €20 million, mainly for restructuring.