Results for H1 2025: Stable activity in a sluggish market. Improvement in adjusted EBITDA and margin. Financial debt and leverage under control

Core Insights - Tarkett reported stable activity in a sluggish market for H1 2025, with a slight increase in revenue and improved adjusted EBITDA and margin [1][2][3] Financial Performance - Revenue for H1 2025 was €1,573.5 million, a 0.9% increase from H1 2024, with organic growth slightly down by 0.2% [2][3] - Adjusted EBITDA reached €154.9 million, representing 9.8% of revenue, up from €148.2 million (9.5% of revenue) in H1 2024 [2][4] - Adjusted operating income (EBIT) was €83.9 million, a 2.6% increase from €81.8 million in H1 2024, while operating profit (EBIT) decreased to €51.5 million from €59.9 million [2][3][8] - Net income attributable to shareholders was -€0.2 million, compared to €18 million in H1 2024, with diluted earnings per share at €0.00 [2][9] Cash Flow and Debt - Free cash flow was -€134.2 million, a decline from -€75.9 million in H1 2024, reflecting seasonal cash consumption [3][23] - Net financial debt stood at €617 million, with a leverage ratio of 1.8x adjusted EBITDA, improved from 2.0x in June 2024 [2][24] Segment Performance - EMEA segment revenue increased by 2.2% to €448.8 million, with adjusted EBITDA rising to €49 million (10.9% margin) [10][14] - North America segment revenue fell by 11.4% to €395.4 million, with adjusted EBITDA declining to €34 million (8.7% margin) [10][16] - CEI, APAC & Latin America segment revenue grew by 1.9% to €248.4 million, with adjusted EBITDA at €30.5 million (12.3% margin) [10][18] - Sports segment revenue rose by 12.0% to €481 million, with adjusted EBITDA at €53.2 million (11.1% margin) [10][20] Market Conditions and Outlook - The geopolitical and macroeconomic environment remains turbulent, affecting demand across markets, particularly in Europe and North America [29][30] - The Group anticipates that the second half of 2025 will be similar to the first half, with ongoing attention to market developments [33]