HERIGE: Nearly Zero Operating Income, Dividend Eliminated Amid Crisis
HERIGE Group, a specialist in precast concrete and industrial joinery, published its annual results for 2025 on Tuesday, revealing a significant divide: despite a solid financial structure, operational activity has significantly contracted in a construction sector still in crisis. Revenue fell by 5.9% to €379.4 million while operating income almost completely collapsed to €0.1 million.
Financial Performance Details
In the fiscal year 2025, HERIGE Industries recorded a revenue of €379.4 million, down by 5.9% compared to 2024. This contraction in volumes directly impacted the gross margin, which stood at €194.0 million, down by €13.3 million year-on-year. However, the gross margin rate remained relatively preserved at 51.1%, slightly down by 0.3 points, thanks to optimization actions in purchasing and productivity gains in processes, notably the reuse of offcuts reducing the need for raw materials. The EBITDA for 2025 amounted to €14.9 million, down by €5.0 million, with an EBITDA margin of 3.9%, down by one point compared to 2024.
Operational Results and Dividend Policy
The operating result for the year 2025 was established at €0.1 million, a drop of €5.0 million compared to 2024. This near-collapse of the operational result, despite performance efforts, reflects the severity of the volume contraction in a context described as a 'historic crisis' in the construction market. After integrating a financial result of -€0.3 million and an exceptional result of -€2.7 million (including restructuring costs of -€2.6 million), the net result for 2025 showed a loss of -€7.7 million, compared to -€17.7 million in 2024. Given this context, the Executive Board will propose to the 2026 General Assembly not to pay dividends in order to preserve the group's investment capacity.
Investment Strategy Amidst Operational Turbulence
Despite operational turbulence, HERIGE has maintained an ambitious investment strategy. The group committed €15.5 million to organic productivity and maintenance investments in 2025. As of December 31, 2025, equity amounted to €143.0 million. Net financial debt remained controlled at €29.4 million (up modestly by €1.3 million), with a net debt ratio of 21%, confirming the balance sheet solidity. Concurrently, the group continues its modernization with a structuring investment of €12 million aimed at a new precast concrete plant spread over three fiscal years (2025-2027). However, management acknowledges limited visibility in the short term, with the sector's recovery dependent on the restart of individual house construction and structural measures in energy renovation. Geopolitical tensions in the Middle East further heighten uncertainty regarding market conditions for 2026.
