Lacroix Shares Plunge into the Red: A Net Loss of €39.7M in 2025
Lacroix concludes the 2025 fiscal year marked by the completion of its strategic refocus and the assertion of its operational fundamentals. While EBITDA profitability holds up, the net result reveals the extent of accounting adjustments related to announced divestitures. This dichotomy—between controlled operational management and substantial non-monetary charges—conditions the credibility of the 2027 roadmap that the group now intends to execute on a consolidated and streamlined scope.
Revenue and Profitability Trends
The group's revenue stood at €445.5M in 2025, down 6.5% on a like-for-like basis, excluding the Signaling segment sold in April 2024. This contraction masks two divergent trajectories. The Electronics activity declined by 13.8% to €304.2M, impacted by project delays in Industry, a cyclical downturn in Aerospace & Defense after three years of growth, and the end of major automotive programs. However, stabilization observed in the fourth quarter (-6.4%) signals a break from negative dynamics. Concurrently, the Environment activity grew by 14.4% to €141.2M, driven by the HVAC, Smart Grids, and Water Networks segments, particularly internationally with strong performances from the Spanish and Italian subsidiaries. In terms of profitability, the group's current EBITDA reached €34.1M, materializing a margin rate of 7.6%, slightly down from 2024 (7.9%) but aligned with the announced target of 7.5%. This margin performance reflects a favorable mix of activities and the resilience of Electronics profitability against the sales contraction, combined with the continued margin improvement in Environment.
Strategic Shift and Activity Performance
The ongoing strategic shift is evident in the differentiated performance of the two activities. Electronics maintained a positive EBITDA margin at 1.0% (€3.1M) despite a 13.8% decline, reflecting financial discipline in the face of contraction. Conversely, Environment advanced robustly: its current EBITDA soared by 36.2% to €32.8M, establishing a margin rate of 23.2% compared to 19.5% a year earlier. This acceleration in Environment's margins is explained by a lag between strong sales acceleration and the gradual structuring of teams, suggesting pending productivity gains. The net result of continuing activities, comprising Electronics and Environment for the full year, was €8.9M compared to €7.8M in 2024, a moderate improvement. However, discontinued activities (Electronics North America and the City-Mobility segment sold in February 2025) generated a net loss of -€56.0M. This amount includes non-cash impairments of €33.4M, as well as ongoing operational losses of -€13.1M mainly from the American entity. In total, the group's net result stands at -€39.7M compared to -€33.8M in 2024.
Cash Flow and Debt Trajectory
The real anchor point for recovery lies in the cash flow and debt reduction trajectory. Free Cash Flow was significantly positive at €36.6M in 2025 compared to €15.2M in 2024, benefiting from a significant improvement in working capital needs supported by a factoring program on continuing activities, and a controlled level of investments. Net debt was substantially reduced, going from €126.7M to €87.8M in one year, bringing the financial leverage (net debt / EBITDA) to 2.6 times, in line with the announced target of a ratio below 3 times. Equity contracted to €94M compared to €140.4M at the end of 2024 due to the allocation of the net loss. The board of directors proposed maintaining the suspension of the dividend for the fiscal year 2025. In 2026, the group expects a moderate increase in revenue, benefiting from market dynamics in Aerospace & Defense and stabilization of the Automotive, HBAS, and Industry segments for Electronics, while Environment is expected to stabilize after its 15% growth. The EBITDA margin is anticipated to be similar in 2026. By 2027, Lacroix confirms its targets: a revenue between €475M and €500M, an EBITDA margin above 8%, and a leverage below 2.0 times. These prospects are based on a repositioning of Electronics towards less automotive exposure and the ramp-up of defense and HBAS programs, as well as the continued ambitious development of Environment supported by international acceleration and digitalization of the offering.
