Essentra PLC (LSE:ESNT) reported full-year 2025 results on Tuesday broadly matching analyst expectations, posting revenue of £302.0m and adjusted earnings per share of 6.1p, although profitability was affected by tightening margins amid operational challenges.
Revenue increased 2.5% at constant currency compared with the previous year, while reported revenue remained largely unchanged at £302.0m, slightly below £302.4m recorded in 2024. Each of the company’s geographic regions achieved growth on a constant currency basis, with EMEA rising 2.6%, the Americas up 2.0% and APAC increasing 3.1%.
Adjusted operating profit declined to £32.0m from £40.1m a year earlier, with the adjusted operating margin narrowing to 10.6% from 13.3%.
Gross margin fell to 43.7% from 45.3%, reflecting changes in the regional sales mix, including the impact of inflation in Turkey, and the company’s short-term focus on restoring service levels following the rollout of a new ERP system across EMEA. Higher labour and freight expenses were also incurred as the group worked to stabilise operations after backlog levels increased during the implementation of the system.
“2025 was a year of good strategic progress delivered against a backdrop of subdued global industrial demand,” said Scott Fawcett, Chief Executive. “Essentra returned to modest revenue growth across all three regions, maintaining robust gross margins through a number of commercial and operational initiatives.”
The company reported adjusted operating cash flow of £44.0m, representing a conversion rate of 137.5%. Net debt, excluding lease liabilities, declined to £60.7m from £68.2m, with leverage standing at 1.4 times adjusted EBITDA.
Management said trading in the early part of 2026 supports confidence in meeting the board’s expectations for the year, with guidance left unchanged.
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