LACROIX has demonstrated its financial resilience with an EBITDA margin of 7.6%, aligning closely with its targets. Despite facing challenges such as significant non-cash depreciations, the company reported a notably positive Free Cash Flow of €36.6 million and a substantial reduction in net debt. As LACROIX navigates through the complexities of its business environment, it remains focused on strategic objectives for the coming years.
Strong EBITDA Performance
The EBITDA margin of 7.6% reflects the ongoing commitment to maintaining operational efficiency. This margin aligns with the company’s earlier projections of approximately 7.5%, albeit slightly down from the restated figure of 7.9% for 2024. The performance underscores LACROIX’s ability to manage profitability amid fluctuating market conditions.
In 2025, LACROIX’s revenue from continuing operations totaled €445.5 million, marking a 6.5% decline on a like-for-like basis. This decrease was primarily driven by challenges in the Electronics segment, while the Environment segment showcased robust growth of 14.4%. The company’s strategic decision to account for the Electronics North America subsidiary as a discontinued operation reflects a proactive approach to streamline its focus on core areas.
Electronics Activity: Navigating Challenges
The Electronics division faced a challenging year, with revenues dropping to €304.2 million from €353.1 million in the previous year, representing a 13.8% decline. Various factors contributed to this downturn, including postponed projects in the industrial sector and a cyclical slowdown in the Avionics & Defense segment following three consecutive years of growth. Additionally, the automotive sector experienced setbacks due to the conclusion of large programs and the non-renewal of lower-margin contracts.
Despite these hurdles, the Electronics division managed to sustain positive profitability, with a recurring EBITDA of €3.1 million and a margin of 1.0%. This achievement is attributed to disciplined financial management and strategic focus on operational efficiency.
Environment Activity: A Bright Spot
In contrast to the Electronics segment, the Environment division flourished, achieving a revenue increase of 14.4% to €141.2 million. This growth was propelled by strong performances in HVAC, Smart Grids, and water networks, particularly in international markets such as Spain and Italy. While the Smart Lighting segment faced challenges due to budget constraints affecting local authorities, the overall trajectory of the Environment business remains positive.
The Recurring EBITDA for the Environment division surged by 36.2%, reaching €32.8 million, and the margin improved to 23.2%. This growth was facilitated by the rapid sales acceleration and the gradual structuring of teams to support expansion.
Financial Position and Net Income
LACROIX reported a net income from continuing operations of €8.9 million in 2025, a slight increase from €7.8 million in 2024. This positive outcome followed the deduction of €13.0 million in depreciation, amortization, and IFRS 2 charges. The operating income stood at €17.0 million, benefitting from a reduction in non-recurring expenses compared to the previous year.
However, net income from discontinued operations revealed a loss of €56.0 million, largely due to non-cash impairments and operational losses in the U.S. entity. Ultimately, the Group’s net income share resulted in a loss of €39.7 million, reflecting the impact of strategic divestitures and ongoing restructuring efforts.
Strengthening the Balance Sheet
The company’s balance sheet showed significant improvements, with shareholders’ equity decreasing to €94.0 million, reflecting the allocation of the net loss. In a positive development, net debt was reduced from €126.7 million to €87.8 million, achieving a leverage ratio of 2.6x, in line with the company’s targets.
The year also brought a substantial improvement in Working Capital Requirements, aided by a factoring program on continuing operations and a controlled level of capital expenditures. Free Cash Flow reached an impressive €36.6 million, a notable increase from €15.2 million the previous year.
Looking Ahead to 2026
As LACROIX approaches 2026, it aims to consolidate its strategic focus following significant restructuring efforts. The company expects moderate revenue growth, which will be supported by a continued emphasis on its core activities. The roadmap for 2027 remains a priority, with plans to reposition the Electronics activity while minimizing exposure to the automotive sector.
LACROIX is poised to capitalize on its strengths in the Environment segment, leveraging digitalization and international expansion. The firm’s commitment to sustainable growth and innovation positions it favorably in a market that increasingly values eco-friendly solutions.
Conclusion
LACROIX’s recent financial performance highlights its resilience amid a shifting market landscape. With a clear strategic vision and a focus on operational efficiency, the company is well-equipped to achieve its long-term objectives. As it moves forward, LACROIX is set to harness its strengths to navigate challenges and seize new opportunities for growth.
- EBITDA margin of 7.6%, consistent with targets
- Electronics segment faced 13.8% revenue decline
- Environment division achieved 14.4% revenue growth
- Net income from continuing operations rose to €8.9 million
- Significant reduction in net debt to €87.8 million
- Strong Free Cash Flow of €36.6 million in 2025
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