This article first appeared on GuruFocus .
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Revenue:EUR4.1 billion for the full year 2025, a 1.3% increase at constant currency.
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Organic Revenue Decline:1.6% decline due to market deterioration in the second half.
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Gross Profit:EUR968 million, with a gross margin contraction of 91 basis points.
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Adjusted EBITA:EUR411 million, with a conversion margin of 42.4%.
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Free Cash Flow:EUR442 million, translating to a cash conversion ratio of 106%.
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Net Profit:EUR113 million, a 37.6% decline from the prior year.
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Net Debt:EUR1.6 billion at the end of 2025.
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Leverage Ratio:3.3 times at the end of the year.
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Acquisitions:4 acquisitions completed in 2025, contributing 2.9% revenue growth.
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Regional Performance:EMEA revenue grew by 4.4%, Americas revenue declined by 6.6%, and APAC revenue declined by 9%.
Release Date: February 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Azelis Group NV ( AZLGF ) delivered strong growth in free cash flow, with a cash conversion ratio of 106%, demonstrating the resilience of its asset-light, cash-generative business model.
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The company completed four strategic acquisitions in 2025, enhancing its portfolio and reinforcing its footprint in key markets.
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Azelis Group NV ( AZLGF ) achieved a revenue of EUR 4.1 billion, marking a 1.3% increase over the prior year in constant currency.
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The company has been proactive in managing costs and working capital, resulting in a reduction of net working capital to sales to 14.1% by the end of 2025.
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Azelis Group NV ( AZLGF ) has made significant progress in its strategic growth accelerators, including innovation, digital transformation, and sustainability, with notable achievements such as winning eight industry innovation awards and an upgraded CDP rating to A minus.
Negative Points
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Organic revenue for the full year declined by 1.6%, with market deterioration in the second half reversing the organic growth achieved in the first half.
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Gross margin contracted by 91 basis points due to negative mix effects across the business, impacting profitability.
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The adjusted EBITA margin decreased by 170 basis points to 10%, influenced by higher costs at recently acquired companies and overall inflation.
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Net profit for 2025 declined by 37.6% to EUR 113 million, primarily driven by non-cash items and a higher effective tax rate.
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The leverage ratio increased to 3.3 times by the end of 2025, which is on the high side of the company's target, limiting its ability to invest countercyclically.
Q & A Highlights
Q: In APAC, you had done decommodification. Should we expect further drag on the top line in 1Q, 2Q, and 3Q of this year? A: Anna Bertona, CEO: The decommodification in APAC will not have much impact in 2026. We have been constantly pruning our portfolio, and while last year saw more activity, I don't expect a significant impact on our P&L in 2026.
Q: Given the leverage at 3.3 times net of EBITDA, what are your plans for further deleveraging? A: Boris Cambon-Lalanne, CFO: The best way to deleverage is to grow our EBITDA. We will deploy capital towards deleveraging as necessary to maintain an appropriate leverage number in line with our credit rating. We aim to keep ample headroom from covenant thresholds.
Q: Can you provide some color on the current trading and the evolution of the order book year-to-date? A: Anna Bertona, CEO: We see a continuation of the trends from the last quarter. The environment is not very bright but not deteriorating. Some indicators like the PMI have been going up, suggesting a potential market inflection.
Q: Your competitor mentioned principals taking back larger accounts in exchange for smaller ones. Is this a trend you recognize? A: Anna Bertona, CEO: This is not new. In difficult times, some principals give more to distribution, while others take away customers for short-term margin grabs. These actions are often reversed as customers prefer the services and terms offered by distributors.
Q: How is the competitive pressure from Chinese suppliers shaping your strategy for 2026? A: Anna Bertona, CEO: We aim to increase our specialties in APAC by investing in technical resources and specialty portfolios. We are agnostic about supplier origin and focus on having the best portfolio for our customers, whether from Western or Asian principals.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
