**Summary**
Zotefoams plc, a global leader in supercritical foams, released a trading update for Q3 2025 and the year-to-date period, highlighting continued strategic progress and performance in line with expectations. Key points include
1. **Financial Performance**
Q3 2025 revenue was £38.2m, slightly down from £39.7m in Q3 2024 but in line with expectations on a constant currency basis.
Year-to-date revenue grew 5% to £115.7m (7% on a constant currency basis), driven by strong performance in EMEA and North America’s Transport & Smart Technologies sector.
Gross margin remained stable, and the balance sheet strengthened with improved cash flow and reduced leverage (0.5x from 0.9x in Q3 2024).
2. **Regional Performance**
EMEA revenue grew 7% year-to-date, led by Consumer & Lifestyle (7%) and Construction & Other Industrial (15%).
North America revenue was flat year-to-date, with Transport & Smart Technologies up 16% offset by weaker Construction & Other Industrial demand.
Asiathough smallshowed growthparticularly in T-FIT® insulationand remains strategically important.
3. **Strategic Initiatives**
Appointed Brandon Thomas as Managing Director, Asia, and partnered with Seoheung Co. Ltd. for a joint venture in Vietnam.
Established a footwear innovation hub in South Korea and committed to a global innovation center in Croydon, UK.
Progressed on the Vietnam manufacturing facility, expected to commission in Q4 2026.
Paused investment in ReZorce® packaging technology, transferring IP to an external consortium.
4. **Outlook**
The Board expects mid-single-digit growth for 2025, with revenue and adjusted profit before tax in line with market expectations (£154.4m revenue and £20.5m profit).
Confident in sustaining momentum, supported by a strong order book and strategic investments in capability and capacity.
Zotefoams remains focused on long-term sustainable growth across its three market verticals: Consumer & Lifestyle, Transport & Smart Technologies, and Construction & Other Industrial.