**Summary of Essentra plcs Final Results for the Full Year Ended 31 December 2025**
Essentra plc reported its full-year results for 2025, highlighting performance in line with market expectations and strategic progress. Key financial and operational highlights include
### **Financial Performance**
**Revenue**£302.0 million, flat compared to 2024 (£302.4 million) but up 2.5% on a constant currency basis, driven by growth across all regions.
**Adjusted Operating Profit**£32.0 million, down from £40.1 million in 2024, reflecting margin pressures due to geographic mix effects and reinvestment.
**Adjusted Operating Margin**10.6%, down from 13.3% in 2024, impacted by temporary costs and mix shifts.
**Adjusted Net Cash Flow from Operating Activities**: £44.0 million, up from £36.4 million in 2024, with strong cash conversion of 137.5%.
**Net Debt**£60.7 million (excluding lease liabilities), down from £68.2 million in 2024, with leverage at 1.4x adjusted EBITDA.
**Dividend**Final dividend of 1.2p per share proposed, maintaining full-year dividend cover of around three times adjusted earnings.
### **Strategic Progress**
**Revenue Growth**All three regions (EMEA, Americas, APAC) delivered year-on-year constant currency revenue growth, with EMEA up 2.6%, Americas up 2.0%, and APAC up 3.1%.
**Acquisition**Completed the acquisition of Device Technologies in December 2025, a US-based specialty cable protection devices manufacturer, aligning with inorganic growth strategy.
**ERP Deployment**Progressed with Microsoft Dynamics 365 rollout in EMEA, with six additional locations launched, on track for completion in early 2027.
**Footprint Optimisation**Transferred manufacturing operations from Costa Rica to Mexico to improve scale and service in the Americas.
### **Operational Highlights**
**Gross Margins**Remained robust at 43.7% (2024: 45.3%), despite temporary pressures from geographic mix and ERP deployment costs.
**Sustainability**Launched components using post-consumer recycled materials and introduced over 1,600 sustainable products in 2025, surpassing 2030 SBTi emissions reduction targets five years early.
**Customer Satisfaction**Strong customer NPS scores across regions, with EMEA at 35, Americas at 55, and APAC at 47 (China declined to 47 due to pricing tensions).
### **Outlook**
**2026 Expectations**Trading-to-date provides confidence in achieving 2026 expectations, with management focused on margin improvement and operational efficiency.
**Balance Sheet**Remains strong, providing flexibility for strategic investments and bolt-on acquisitions.
**Middle East Situation**Monitoring potential broader impacts, though the Group has no operating footprint in the region.
### **CEO Commentary**
Scott Fawcett, CEO, emphasized 2025 as a year of strategic progress despite subdued global industrial demand. He highlighted revenue growth across regions, robust gross margins, and advancements in strategic priorities, including the Device Technologies acquisition and ERP rollout. Fawcett expressed confidence in Essentras ability to create strong shareholder value through its unique customer proposition, clear strategic priorities, and disciplined capital allocation.
### **Conclusion**
Essentra plc demonstrated resilience in 2025, achieving modest revenue growth, maintaining robust gross margins, and making significant strategic progress. The Group is well-positioned for further growth in 2026, supported by a strong balance sheet, operational efficiency initiatives, and a focus on sustainable and value-enhancing growth opportunities.