Lagardere S.A.

Louis Hachette Group reported 2025 revenue of EUR 9.6 billion versus EUR 9.2 billion in 2024, up 4% reported and 3% like-for-like. Adjusted EBIT rose to EUR 551 million, up 8%, while EBIT before interest and tax was EUR 429 million, up 7%. Net profit increased to EUR 112 million from EUR 62 million, and net result group share rose to EUR 22 million from EUR 13 million. CFFO for the group reached EUR 558 million in 2025 versus EUR 357 million in 2023. Net debt ended just below EUR 1.6 billion, down EUR 236 million year over year, and leverage fell below 2x. For 2026, management expects Publishing revenue to be stable despite FX headwinds and a tougher comparison in France, Publishing EBITDA roughly in line with 2025, and Travel Retail sales growth in the mid-single-digit range with slight margin improvement; Prisma expects to keep EBITA positive before restructuring, with EUR 15 million to EUR 20 million of annual savings from the 2025 restructuring plans.

Jean-Christophe Thiery framed 2025 as proof that the new group structure and diversified model are working, citing record EBITA, strong cash generation, and rapid debt reduction. He highlighted Publishing strength in France, the U.S. and the U.K., Travel Retail’s record year and Schiphol takeover, and Live’s audience gains and arena performance, while positioning 2026 as a year to consolidate leadership, keep investing selectively, and continue deleveraging. His tone was confident but measured, with repeated emphasis on discipline and execution.

Gregoire Castaing focused on the financial quality of the year: revenue of EUR 9.6 billion, adjusted EBITA of EUR 551 million, CFFO of EUR 558 million, and net debt just below EUR 1.6 billion. He said the group paid EUR 100 million of tax, EUR 96 million of financial interest, EUR 59 million in dividends, and EUR 85 million to minority shareholders, while also funding M&A and refinancing. He noted that Publishing EBITA reached EUR 308 million with CFFO of EUR 361 million, Travel Retail EBITA reached EUR 312 million with CFFO of EUR 224 million, and Prisma’s EBITA was negative due to EUR 49 million of restructuring costs, though excluding those costs it remained positive. He also said 2026 deleveraging remains a key priority, but did not give a specific leverage target.

Analysts pressed on 2026 outlook, especially margin upside in Travel Retail after China restructuring, Prisma’s restructuring and cash impact, debt targets, and cash flow conversion. Management said Publishing should see stable revenue and EBITDA roughly in line with 2025, while Travel Retail expects mid-single-digit sales growth, slightly better margins, and most China restructuring completed by year-end 2026; they cautioned that FX and a weak U.S. dollar remain risks. On Prisma, management said the 2025 restructuring plans should yield EUR 15 million to EUR 20 million of annual savings from 2026, with no major additional restructuring expected, though some smaller costs could still occur. They also said Live is not being considered for sale and that breakeven in the division is feasible in 2026, though perhaps only in 2027 if advertising conditions weaken.