Zotefoams Reports Record 2025 Profits and Strengthens Funding for Growth

Zotefoams plc (LSE:ZTF) delivered a strong 2025 performance, reporting unaudited revenue growth of 7.2% to £158.5m and a record 37.9% increase in adjusted profit before tax to £21.1m, both comfortably ahead of market expectations. The result was supported by a robust fourth quarter and particularly strong contributions from its EMEA and North American operations.

Demand was especially strong in the Consumer & Lifestyle segment, with footwear a notable growth driver. Alongside this, the group continued to execute on its strategic initiatives, including preparations to transition to 3D midsole production at a new manufacturing facility in Vietnam and the ongoing integration of its OKC acquisition. Management said these initiatives are designed to support longer-term growth across key end markets.

Zotefoams also reinforced its financial position, maintaining low leverage and securing an expanded £90m multicurrency revolving credit facility. The enhanced funding capacity is intended to support continued organic investment and selective M&A opportunities in line with the group’s growth strategy.

Looking ahead, Zotefoams’ outlook is underpinned by strong recent corporate execution and healthy cash generation. These positives are tempered by concerns around valuation and profitability metrics, with a high P/E ratio and net losses weighing on sentiment. Nevertheless, management believes its strategic investments and acquisition-led growth provide a solid foundation for longer-term value creation.

More about Zotefoams

Zotefoams plc is a London Stock Exchange-listed global leader in supercritical fluid foam technology, producing lightweight AZOTE and high-performance ZOTEK foams using nitrogen expansion processes. The group serves customers across Consumer & Lifestyle, Transport & Smart Technologies, and Construction & Other Industrial markets. It also manufactures T-FIT advanced insulation products and operates from its headquarters in Croydon, UK, with additional manufacturing and conversion sites in the United States, Poland, Spain and China.