Safilo Group SpA (SAFLF) Q4 2025 Earnings Call Highlights: Strong Profitability Amid Currency ...

This article first appeared on GuruFocus .

• Net Sales:EUR983.4 million, up 1.8% at constant exchange rate, 2.6% organically; decreased by 1% at current rates due to US dollar weakening.

• Gross Margin:Increased by 120 basis points to 60.9% of sales.

• Adjusted EBITDA:EUR104.2 million, up 12% from 2024; margin increased by 120 basis points to 10.6% of sales.

• Adjusted Net Profit:EUR44.6 million, up 30.4% versus 2024.

• Free Cash Flow:EUR68.1 million, significantly higher than EUR47.8 million in 2024.

• Net Debt:Decreased to EUR46.1 million from EUR82.7 million at the end of 2024.

• Regional Performance - Europe:Sales up 2.7% at constant exchange rate, 2.3% at current rates.

• Regional Performance - North America:Sales up 1.8% at constant exchange rates; revenues declined 2.6% at current rates.

• Regional Performance - Asia Pacific:Sales up 4.8% at constant exchange rate.

• Regional Performance - Rest of the World:Sales down 4.5% at constant rate, 10% at current rates.

• Brand Performance - Carrera:Strong growth, particularly in Australia and North America.

• Brand Performance - Smith:Positive performance with 40% of sales from direct-to-consumer channel.

• Brand Performance - Eyewear by David Beckham:Exceptional growth across all geographies.

• Share Buyback Program:EUR80 million completed in December; new program for 2026 up to 10 million shares.

• Warning! GuruFocus has detected 3 Warning Sign with SAFLF.

• Is SAFLF fairly valued? Test your thesis with our free DCF calculator.

Release Date: March 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Safilo Group SpA ( SAFLF ) achieved a net sales growth of 1.8% at constant exchange rates and 2.6% organically, demonstrating resilience in a volatile global environment.

• The company improved its gross margin to approximately 61%, with an adjusted EBITDA margin rising to 10.6% of sales, marking the highest profitability level in the past decade.

• Safilo Group SpA ( SAFLF ) successfully managed tariff pressures through supply chain flexibility and commercial actions, fully neutralizing the impact by the year's end.

• The company generated a strong free cash flow of EUR68.1 million, significantly reducing net debt to EUR46.1 million after an EUR80 million buyback program.

• Safilo Group SpA ( SAFLF ) made meaningful progress in sustainability, achieving 100% renewable electricity across operations and receiving an A- rating from CDP.

Negative Points

• The weakening of the US dollar negatively impacted reported revenue, which decreased by 1% at current rates.

• Blenders faced challenges in North America due to a highly promotional e-commerce environment, affecting its performance.

• The Asia Pacific region experienced a slowdown towards the end of the year, with a 11.5% decline in fourth-quarter revenues at constant rates.

• Emerging markets, particularly India and the Middle East, faced volatility due to geopolitical tensions and cautious purchasing behavior.

• The company anticipates potential challenges in 2026 due to geopolitical tensions, particularly in the Middle East, which could impact approximately 2% of its sales.