Delfingen: Net Result for 2025 Surges Despite a Decline in Revenue
The cable protection solutions specialist displays revealing 2025 results of an ongoing transformation. While its revenue declines by 5.5% to 400.3 million euros, Delfingen succeeds in increasing its current operating margin by 1.9 points to 7.5%, demonstrating its ability to transform its business model in a challenging environment. This performance, driven by better cost control and a strategic refocus, reshapes the financial profile of the group.
Annual Revenue and Business Dynamics
Delfingen's annual revenue stands at 400.3 million euros, down 5.5% from 423.7 million in 2024, a reduction in line with the group's expectations. This contraction is partly due to a contrasting macroeconomic context, with an unfavorable exchange rate impact of 10.2 million euros over the year. At constant exchange rates, the decline remains moderate, amplified by the voluntary termination of unprofitable contracts in the fluid tubing business. Concurrently, the Textiles division shows an opposite trajectory: its sales increase by 7.3%, confirming its status as a growth driver for the group. This division, now accounting for 20% of revenue, benefits from the relocation of some of its production to China, a decision at the heart of the IMPULSE 2026 plan. EBITDA increases by 19.4% to 55.1 million euros, representing 13.8% of revenue, an increase of 2.9 points.
Operational Margin Turnaround
The turnaround in the current operating margin is a real signal of the transformation underway at Delfingen. It reaches 7.5% of revenue in 2025, up from 5.6% a year earlier, a jump of 1.9 points that signifies more than just strict management discipline. This improvement results from three complementary dynamics: firstly, a reduction in raw material costs improving the gross margin by 3.1 points; secondly, a positive shift in product mix, with the rise of textiles and the reduction of low-profit contracts; and finally, an enhancement of industrial efficiency stemming from the implementation of the IMPULSE 2026 plan. The operating result reaches 29.6 million euros, up by 83%, while the net result attributable to the group stands at 12.6 million euros compared to almost none in 2024. This dramatic increase in net result (net margin of 3.2%) shows that the group manages to transform its decreasing net debt into effective profitability gains.
Financial Foundation Strengthening
Beyond operational performance, Delfingen strengthens its financial base. Net debt decreases to 97.8 million euros (compared to 115.1 million at the end of 2024), with a leverage ratio of 2.12x after 3.02x in 2024. The gearing ratio also improves, moving from 77% to 67%. This debt reduction trajectory is accompanied by robust cash generation: free cash flow stands at 27.2 million euros, representing 6.8% of revenue, up 83% annually. Geographically, the group accelerates its focus on Asia, a driver of its diversification. China shows a growth of 17% and India 10%, increasing the combined share of these two countries from 8% to 9.2% of the group's revenue. This Asian dynamic is part of the group's 'localization' strategy, which brings its engineering and production capabilities closer to end markets. Aware of the profound transformations in the automotive sector (electrification, new electronic and electrical architectures), Delfingen expresses its intention to accelerate geographic repositioning in 2026, with an enhanced focus on China, now the epicenter of global automotive innovation and production. The group also displays its ambitions in high-voltage solutions and electrification, while continuing to diversify into non-automotive markets (robotics, rail, agriculture, energy), which already represent nearly 20% of its sales. In recognition of this transformation and its confidence in the solidity of the group's fundamentals, the board of directors will propose to the general meeting on June 5, 2026, the payment of a dividend of 1.73 euros per share, reflecting the management's confidence in the group's prospects.
