This article first appeared on GuruFocus .
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Adjusted Profit Before Tax Group Share:Grew by 3.8% versus 2024 at constant foreign exchange rates.
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Free Cash Flow:Approximately EUR374 million.
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Dividend Proposal:EUR2 per share.
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Belron Revenue Growth:More than 7% at constant FX.
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Belron Adjusted EBIT Margin:23%.
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D'Ieteren Auto Operating Margin:4.7%.
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PHE Adjusted Profit Before Tax Group Share:Grew by 9.7% year-on-year.
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TVH Sales Growth:1.1% year-on-year at constant FX.
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TVH Adjusted Operating Profit Margin:13.4%.
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Moleskine Adjusted Operating Profit:EUR8 million.
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Corporate Segment Net Debt:Decreased from EUR908 million to EUR542 million.
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Release Date: March 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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D'Ieteren Group ( SIETY ) reported a 3.8% growth in adjusted profit before tax group share on an underlying basis, demonstrating resilience despite challenging market conditions.
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The company maintained a strong free cash flow of EUR 374 million, showcasing the robustness of its portfolio.
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Belron achieved a record year with over 7% top-line growth at constant FX and a strong 23% adjusted EBIT margin.
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D'Ieteren Auto maintained a robust operating margin of 4.7% despite a challenging market environment, highlighting effective management and strategic vehicle mix.
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PHE continued its growth trajectory with a 9.7% increase in adjusted profit before tax group share, driven by market share gains and successful M&A strategy.
Negative Points
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The adjusted PBT group share declined by 10.3% year-on-year on a reported basis, primarily due to additional financial charges and significant foreign exchange headwinds.
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TVH experienced a decline in adjusted operating profit margin to 13.4%, impacted by negative FX effects and increased freight costs.
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Moleskine faced challenges in its wholesale channel, leading to a negative operating leverage and an adjusted PBT group share of minus EUR 8 million.
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D'Ieteren Auto's sales declined by 5.5% year-on-year, and the company anticipates a material decline in adjusted operating margin in 2026 due to market pressures.
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The group faced significant management changes, including the departure of the Chief Investment Officer, which could impact strategic continuity.
Q & A Highlights
Q: Can you provide insights into Belron's expected organic growth for 2026, particularly regarding volume recovery in the U.S. and the normalization of insurance claim avoidance? A: For 2026, we anticipate mid- to high single-digit sales growth for Belron, based on December 2025 foreign exchange rates. The U.S. market has shown signs of normalization in insurance claim avoidance, which improved in the second half of 2025. This normalization is expected to continue into 2026, contributing to volume recovery and operating leverage.
Q: There seems to be a gap between your group guidance and consensus, particularly concerning TVH and Auto. Can you elaborate on this? A: The consensus might not fully account for the anticipated challenges in D'Ieteren Auto, where we foresee continued top-line pressure and a material decline in margins. This is due to a more competitive market environment and pressure on distribution margins. TVH is also expected to face challenges, contributing to the gap in expectations.
Q: Belron's second-half margins were strong. What factors should we consider for 2026 margins, and how do you see North America's organic sales growth? A: The second-half margin of 24.4% at Belron was influenced by several factors, including improved claim avoidance and operational execution. For 2026, while we expect continued margin improvement, it's important to consider potential cost phasing, trading day effects, and ongoing investments. North America's organic sales growth was strong, driven by volume recovery and favorable market conditions.
Q: Regarding TVH, how do you plan to achieve the 16% EBIT margin target by 2028, given current challenges? A: We remain committed to the 16% EBIT margin target for TVH by 2028. Achieving this will require a combination of volume growth, price support, and effective cost containment. While the current environment is challenging, we believe these factors will enable us to reach our target over the next few years.
Q: There have been reports about a potential IPO for Belron. Can you comment on this and the ideal environment for such an event? A: While we cannot comment on market rumors, we acknowledge that our co-shareholders at Belron may seek a liquidity event in the future. As the majority shareholder, we are open to various options, including maintaining or adjusting our stake. The ideal environment for a liquidity event would depend on market conditions and Belron's financial position at the time.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
