Gevelot: Revenue Up 13%, But Middle East Tensions Cloud 2026 Outlook
Gevelot closed the 2025 fiscal year on a positive note with consolidated revenue of 156.3 million euros, up 13.2%, and an improved current operating result at 6.7 million euros. However, this progress contrasts with the group's warnings about the operating environment, deteriorated by conflicts in the Near and Middle East, which threaten to weaken the outlook for 2026.
Strong Performance Driven by Pumps Sector
Gevelot's consolidated revenue reached 156.3 million euros in 2025, a 13.2% increase from 138.1 million euros in 2024 (+16.9% at constant exchange rates). The Pumps sector, the main driver of the group, supported this growth, with particularly strong dynamics in America and the Middle East. The current operating result improved to 6.7 million euros from 2.7 million euros in 2024, an increase of 4.0 million euros. The Pumps sector contributed 7.7 million euros, compared to 4.1 million euros the previous year. Excluding the 2.6 million euros in exceptional royalties recorded in 2024, the operational improvement reached 6.2 million euros.
Profitability Affected Despite Operational Gains
Despite the increase in operating result to 6.4 million euros (from 2.3 million in 2024), the group's profitability remains affected by several factors. The sales mix evolved less favorably, with more low-margin projects developing, and the group recorded inventory impairments. The incomplete absorption of certain fixed costs, which are normalizing, continues to weigh on performance. The financial result contracted to 0.1 million euros from 3.0 million euros in 2024, mainly due to negative exchange rate effects of about 2.4 million euros and a decrease in treasury income of 1.0 million euros. The group experienced significant exposure to currency volatility, particularly in Central Asia and Oceania. The consolidated net result stood at 3.4 million euros compared to 3.8 million euros in 2024.
Increased Caution Due to Operational Environment
The group expresses increased caution regarding the operational environment. Conflicts in the Near and Middle East have led to a significant degradation of logistics conditions, with marked increases in transport and insurance costs, the application of exceptional surcharges, and a reduction in certain transport capacities. The group anticipates a gradual increase in these disruptions across global logistics flows, particularly affecting supply chains for raw materials and components from Asia. Gevelot indicates insufficient medium-term visibility regarding the risks of supply disruptions or the continuity of operations in the Middle East. In case of deterioration, up to 10% of the group's revenue could be exposed beyond current opportunities, potentially affecting growth prospects and profitability for 2026. However, no significant deterioration was observed in the first quarter of 2026. The group maintains a cautious approach and remains mobilized to adapt its operations and continue its strategic execution.
