Rosebank Industries (ROSE) H2 2025 earnings summary

Executive summary

• Achieved a major milestone with the $1.9bn acquisition of Electrical Components International, Inc. (ECI), contributing $445m in revenue and $70m in adjusted operating profit for the four-month period post-acquisition.

• Statutory results show revenue of $445m, operating loss of $46m, and loss before tax of $51m; adjusted results show operating profit of $57m and profit before tax of $52m.

• Net debt reduced to $494m, ahead of expectations, with leverage at 2.4x annualised adjusted EBITDA.

• Initiated a 24-month restructuring programme at ECI, including site reductions and cost optimisations, expected to deliver significant profit uplift.

• In advanced discussions to acquire two US-based businesses for $3.05bn, potentially funded by £1.9bn equity and new debt.

Financial highlights

• Adjusted operating profit: $57m (2024: loss of $2m); annualised adjusted operating profit: $175m.

• Adjusted diluted EPS: 17.8 cents (2024: loss of 5.7 cents); statutory diluted EPS: loss of 22.6 cents.

• Group net debt: $494m; net debt to annualised adjusted EBITDA: 2.4x.

• Adjusted free cash flow: $55m; free cash outflow after all costs: $77m, reflecting planned unwind of costly working capital programmes.

• ECI annualised revenue: $1,219m; annualised adjusted operating profit: $188m.

Outlook and guidance

• ECI well positioned to benefit from US economic recovery; further margin improvement expected through 2026.

• Board confident in ability to deliver further value-accretive acquisitions and maintain disciplined capital allocation.

• Progressive dividend policy adopted, targeting earnings cover of ~3x adjusted diluted EPS; first interim dividend expected after September 2026 interim results.