EXEL Industries: Revenue Declines by 12%, Agriculture Weighs Heavily
EXEL Industries reported a revenue of 247.2 million euros in the second quarter of the 2025-2026 fiscal year, showing a decline of 12.1% in reported figures and 10.4% on a like-for-like basis and constant exchange rates. The decrease reflects the ongoing weakness in Agricultural Spraying, facing sustained uncertainty in the markets for large-scale farming and viticulture. Meanwhile, the rollout of its new ERP has allowed the Industry segment to resume a normal pace of order intake.
Revenue Decline Attributed to Key Sectors
The 12.1% decrease in the group's revenue is primarily attributed to a contraction in volumes across two activities: Agricultural Spraying and Industry. In Agricultural Spraying, the market environment remains degraded, marked by persistent uncertainty in large-scale farming and viticulture. In Europe, farms and distribution networks are adopting a cautious stance, delaying equipment renewals and postponing investments. However, sales of spare parts, services, and used machines partially mitigate this decline. In North America, the contraction is more contained compared to the previous year, following an already significant recession last year, although the area remains below its historical activity levels. The Industry activity also shows a decline, despite the good performance of standard equipment and solutions, particularly in North America. Activity related to large projects remains depressed, as anticipated.
Leisure and Technical Tubing Activities Provide a Counterbalance
The Leisure and Technical Tubing activities offer a counterpoint to the overall weakness. The Leisure segment remains stable in the second quarter on a comparable basis, with good resilience in Gardening, particularly driven by the United Kingdom. The Nautical Industry remains subdued in a constrained market context. The Technical Tubing activity remains solid and stable. These elements demonstrate the heterogeneity of the activity portfolio, with some segments absorbing the current economic environment better than others.
Significant Development with ERP Deployment
A notable element of the quarter is the completion of the ERP deployment during the quarter, which allowed the Industry segment to resume a normal pace of order intake without delays. This operational parameter suggests that disruptions related to technological migration will belong to the past starting next quarter. For investors, the central issue remains the sustainability of the depression in Agricultural Spraying: as long as uncertainty persists on European and global agricultural markets, the group will continue to be exposed to significant volume pressures.
