Delta Plus Group: Revenue Declines but Margins Hold Steady in 2025
Delta Plus Group reported a revenue of 389.6 million euros in 2025, down 2.6% from 2024, hindered by an unfavorable exchange rate effect of 3.5% and an organic decline of 2.0%. However, the group maintained its operational profitability at 11.4% of revenue, although net income attributable to the group fell by 12.5% to 27.2 million euros. For investors, the challenge remains: will this margin resilience be enough to offset a contracting activity?
Revenue Analysis
Delta Plus Group's consolidated revenue stood at 389.6 million euros in 2025, marking a 2.6% decrease year-over-year. Beyond this apparent decline, the composition of this decrease warrants analysis. The group suffered an unfavorable exchange rate effect of 14.0 million euros, or 3.5% of revenue, mainly due to the depreciation of the dollar against the euro. Excluding these exchange rate and scope variations, the organic contraction amounts to 2.0%, a figure that masks divergent geographic realities. Outside Europe, the group posted an organic growth of 1.5%, driven by the dynamism in Latin America and the Middle East. Conversely, Europe saw a 5.5% organic decline, affected by a wait-and-see attitude in France and a deteriorated industrial cycle in Germany. The group's strategy of targeted acquisitions partially cushioned this impact: the integration of Gevanta in Lithuania and Baspa in Chile generated a positive perimeter effect of 2.9%, or 11.4 million euros, allowing the group to display an overall growth of 0.9% at constant exchange rates.
Operational Resilience
Despite reduced volumes, Delta Plus Group maintained its pricing discipline and product value enhancement, allowing the gross margin to advance to nearly 56.0% of revenue, up by 60 basis points. This operational resilience translated into a current operating income of 44.4 million euros, representing 11.4% of revenue, down from 12.6% a year earlier. Although operational profitability declined by 1.2 points, it remains solid and validates, according to the group, the effectiveness of the economic model in a low cycle. The net income attributable to the group stood at 27.2 million euros, or 7.0% of revenue, down by 12.5% compared to 2024. This sharper decline than that of operational profitability reflects several factors: an increase in the cost of gross financial indebtedness by 0.8 million euros to 6.1 million euros, linked particularly to the financing of acquisitions in the second half and a high working capital requirement over three quarters, as well as a tax rate of 24.2%. On the balance sheet side, the optimization of working capital is a positive point: stocks were reduced by 8.3 million euros to 111.0 million euros, bringing the working capital requirement to 128 days of revenue, almost stable compared to 127 days in 2024.
Financial Outlook
Financially, Delta Plus Group exhibits a robust structure. Equity progressed to 275.2 million euros, despite an unfavorable impact from conversion differences related to the dollar's depreciation. The gearing ratio stands at 52.8% of equity and the leverage ratio at 2.9 times EBITDA, levels that the group considers prudent and preserving intact financial flexibility. For 2026, the group aims for a return to organic growth, driven by the normalization of its historical markets and the commercial transformations undertaken. It also plans to actively continue its external growth strategy with several acquisition files under review. The group remains vigilant in the face of geopolitical uncertainties, notably the war in Ukraine and the situation in the Middle East, factors likely to fuel currency volatility and inflationary pressures on maritime freight and certain raw materials. The board of directors proposes a dividend of 0.75 euros per share, reflecting the desire to preserve optimal financial flexibility to continue the momentum of external growth. The strategic challenge remains the group's ability to reconcile the ambition of returning to organic growth with maintaining its operational profitability and the successful integration of its acquisitions in a complex macroeconomic environment.
