Luceco plc (LSE:LUCE) reported a robust trading performance in 2025, prompting the group to raise its outlook for 2026 after delivering results ahead of market expectations and strengthening its balance sheet. Revenue for the year rose 12% to approximately £271m, while adjusted operating profit is expected to be at least £33.5m, representing growth of around 15%.
Momentum accelerated in the second half, supported by particularly strong demand for EV charging products, where sales increased by 85% to around £18m. The group also delivered steady growth across its wiring accessories and LED lighting ranges. Profit margins expanded to above 12%, reflecting operating leverage, manufacturing efficiency improvements and the benefits of recent acquisitions.
Luceco generated roughly £30m of adjusted free cash flow during the year, enabling it to reduce net debt to around £53m, equivalent to 1.3x EBITDA. Management said the improved financial position, combined with ongoing efficiency gains and acquisition synergies, has given the board confidence to lift revenue and profit expectations for 2026. The company added that it retains balance-sheet capacity to support further organic investment and selective bolt-on acquisitions, while continuing to benefit from structural growth linked to electrification and the energy transition.
Overall, the outlook is underpinned by strong revenue growth, expanding margins and positive strategic momentum, particularly in EV charging. These strengths are tempered by concerns around leverage trends and softer technical indicators, while valuation appears broadly reasonable based on current earnings and dividend metrics.
More about Luceco plc
Luceco plc is a UK-listed designer and manufacturer of residential and commercial electrification products. Its portfolio includes wiring accessories, EV chargers, LED lighting and portable power solutions, manufactured at its own facilities and distributed through professional, wholesale and retail channels.
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