Essentra (LSE:ESNT) said trading for the year ending 31 December 2025 remains in line with management expectations, with group revenue projected to increase by around 2.5% on a constant currency, like-for-like basis, while reported revenue is expected to be broadly flat due to adverse foreign exchange movements.
Performance in the fourth quarter showed continued improvement, with revenue rising 4.7% on a constant currency, like-for-like and working day-adjusted basis. Growth was primarily supported by pricing actions, greater exposure to structurally higher-growth end markets such as energy transition and digital infrastructure, and more favourable year-on-year comparatives. Regionally, EMEA delivered high single-digit growth, the Americas achieved low single-digit expansion, while APAC declined slightly following non-recurring benefits recorded in China during the prior year.
Adjusted operating margins for the full year are expected to be consistent with those achieved in the first half, reflecting ongoing operational efficiency initiatives. Essentra reported that cash generation and balance sheet strength remain solid, with leverage anticipated to stay comfortably below its 1.5x target threshold, preserving flexibility to support further investment and growth opportunities.
During December, the group completed the acquisition of US-based Device Technologies, a specialist provider of cable protection devices. The deal enhances Essentra’s manufactured product offering, with integration progressing as planned. Management also noted a healthy pipeline of additional bolt-on acquisition opportunities under review, reinforcing its commitment to disciplined inorganic growth.
Market sentiment around the shares reflects mixed financial performance and technical signals, with valuation levels presenting some risk. However, the ongoing share buyback programme continues to provide support for shareholder returns. Limited recent earnings call commentary restricts visibility into management’s near-term outlook.
More about Essentra
Essentra plc is a UK-based global supplier of essential components and solutions, focusing on the manufacture and distribution of plastic injection moulded, vinyl dip moulded and metal products. The group operates in 28 countries and employs approximately 3,000 people across 14 manufacturing sites, 26 distribution centres and 37 sales and service locations. Its products serve around 64,000 customers across a wide range of industries, including equipment manufacturing, automotive, fabrication, electronics, medical technology and renewable energy.
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