Ontex Group N.V.

2025 revenue decreased 5% like-for-like, driven almost entirely by a EUR 93 million volume decline. Adjusted EBITDA was EUR 184 million, with a 10% margin, down 2 percentage points year over year. Adjusted profit from continuing operations was EUR 34 million versus EUR 76 million in 2024. Free cash flow was minus EUR 25 million, net debt was EUR 577 million versus EUR 612 million at end-2024, and leverage was 3.3x. In Q4, revenue was down 7.6% like-for-like and adjusted EBITDA margin was 9%, down 3 percentage points year over year. For 2026, management targets 10% adjusted EBITDA growth, largely stable revenue, positive free cash flow after financing, and leverage of 3x or better by year-end. CapEx is expected to return to 3.5% to 4.5% of revenue, and nonrecurring cash outflow is expected to be about EUR 20 million based on current plans.

Laurent Nielly struck a candid tone, calling 2025 disappointing and saying the company still needs to rebuild trust and improve its trajectory. He said the main issues were softer demand, slower execution in growing segments during the European transformation, supply disruption, and weaker contract manufacturing in North America. Strategically, he emphasized preserving competitive positions, resuming volume growth, improving productivity, and launching a broad strategic review to sharpen where Ontex can create value.

Geert Peeters focused on the mechanics behind the year’s decline and the balance sheet. He said the EUR 184 million of adjusted EBITDA was pressured by EUR 40 million of lower revenue impact, partially offset by EUR 69 million of net savings from the cost transformation program, while raw materials rose about 4% and other operating costs rose about 8%. He highlighted free cash flow before financing of plus EUR 18 million, but after EUR 43 million of financing cash outflow, free cash flow to equity holders was minus EUR 25 million. He also noted net debt fell to EUR 577 million, gross debt was EUR 647 million, liquidity was EUR 240 million, and debt maturity is extended to at least 2029.

Analysts focused on how 2026 will progress quarter by quarter, especially the weak Q1 setup, North American contract manufacturing, pricing versus raw materials, working capital, and cash outflows from restructuring. Management said Q1 2026 should be in line with Q4 2025, with improvements starting from Q2 and occurring quarter by quarter, and that U.S. contract manufacturing sales will be lower year over year while retail brand growth continues. On working capital, Geert said receivables factoring at year-end was EUR 185 million and that there is no unusual issue expected in 2026, while on restructuring he guided to about EUR 20 million of cash outflow based on current plans. On Russia, Laurent said the business is still about 5% of revenues and will be considered within the broad strategic review, but no conclusion is being pre-judged.