Princes Group (PRN) Q3 2025 TU earnings summary

Executive summary

• Achieved EBITDA growth of 51.5% to £111.1m for the nine months ended 30 September 2025, with margin expansion to 7.8% from 4.9% year-over-year.

• Revenue reached £1.4bn, reflecting deflationary raw material pricing and a focus on earnings quality.

• Significant operational efficiency gains, improved product mix, and exit from low-margin contracts drove profitability.

• B2B channel sales grew 10% year-over-year, and commercial momentum was supported by cross-selling and innovation pipeline.

Financial highlights

• EBITDA margin expanded by 290 bps year-over-year, with notable gains in Italian (+590 bps), Foods (+170 bps), and Drinks (+170 bps) segments.

• Underlying free cash flow reached £136.5m, supported by working capital discipline and supplier management.

• Pro forma adjusted net cash for the period was £268.2m.

• Net working capital improved by £74.3m, with Days Payables Outstanding increasing to 68 days from 50 days at year-end 2024.

Outlook and guidance

• Trading remains in line with expectations, with confidence in delivering full-year performance as per internal budget.

• Management targets incremental revenue of £1–1.5bn through M&A, organic revenue CAGR above 3%, EBITDA margin of 9%, leverage ≤2.0x, and ROCE above 20%.

• Continued focus on profitable, cash-generating growth and targeted M&A in core categories and geographies.