Results for H1 2025: Stable activity in a sluggish market. Improvement in adjusted EBITDA and margin. Financial debt and leverage under control
Results for H1 2025:
Stable activity in a sluggish market
Improvement in adjusted EBITDA and margin
Financial debt and leverage under control
Results for the second quarter and first half of 2025
Q2 revenue up +1.5% and +0.9% on a like for like basis compared to Q2 2024
H1 revenue up +0.9% compared to H1 2024 but down -0.2% on a like for like basis
Adjusted EBITDA of €155 million in H1 2025, representing 9.8% of sales, slightly up compared to H1 2024 (€148 million, 9.5% of sales). The contribution of the companies acquired in the Sports segment and the improvement in EMEA offset the difficulties faced in North America.
EBIT of €52 million in H1 2025, down compared to H1 2024 (€60 million)
Net income attributable to company shareholders of -€0.2 million compared to €18 million in the first half of 2024
Cash consumption reflects the Group's usual seasonality (free cash flow of -€134 million, compared with -€76 million in H1 2024)
Net financial debt of €617 million, i.e. a debt leverage ratio of 1.8x adjusted EBITDA, an improvement compared to June 2024 (2.0x).
During the first half of the year, Tarkett acquired two companies in Sports in the United States: Mid-Atlantic Group in Pennsylvania and Deluxe Athletics in Georgia.
Paris, July 29, 2025: The Supervisory Board of Tarkett (PARIS:FR), which met today, reviewed the Group's consolidated results for the first half of fiscal year 2025.
The Group uses alternative performance indicators (not defined by IFRS) described in detail in Appendix 1 on page 6 of this document:
In millions of euros
H1 2025
H1 2024
% Change
Revenue
1,573.5
1,558.7
+0.9%
Of which organic growth
-0.2%
-2.2%
Adjusted EBITDA
154.9
148.2
+4.5%
% of revenue
9.8%
9.5%
Adjusted operating income (EBIT)
83.9
81.8
+2.6%
% of revenue
5.3%
5.3%
Operating profit (EBIT)
51.5
59.9
-14.0%
% of revenue
3.3%
3.8%
Net income attributable to shareholders of the company
-0.2
18.0
-
Diluted earnings per share (€)
0.00
0.27
Free cash flow
-134.2
-75.9
-
Net debt
616.5
620.4
-
Leverage (Net debt / Adjusted EBITDA 12 months)
1.8x
2.0x
Revenue for the first half of 2025 amounted to €1,573.5 million, up +0.9% compared to the first half of 2024. Organic sales were down very slightly (-0.2%), reflecting a broadly stable volume and mix and a few selective sales price adjustments (-0.4%) compared with the first half of 2024. The exchange rate had a negative impact, mainly due to the depreciation of the dollar.
All divisions posted slight organic growth, with only North America lagging due to delays in shipments following the consolidation of three logistic platforms. The situation has now returned to normal, and the pace of shipments is allowing the backlog to be cleared.
Adjusted EBITDA for the first half of the year amounted to €154.9 million, i.e. 9.8% of revenue, compared to €148.2 million in the first half of 2024, i.e. 9.5% of revenue.
The combined effect of volume and mix was almost neutral, with a favorable product mix offsetting lower volumes.
The impact of selective price reductions was limited (-€6 million) compared with the first half of 2024.
Raw material prices were slightly lower than in the previous year and contributed favorably for+ €4 million for the half-year, but wage inflation remained significant (-€12 million).
SG&A expenses decreased by €2 million due to cost adjustments in line with lower activity levels, following organizational changes at the Tarkett Group and EMEA levels.
The Group's strong industrial performance and productivity measures enabled a significant reduction in production costs of €21 million, which contributed significantly to the improvement in the margin for the first half of the year.
The adjusted EBITDA margin for the first half of the year improved (9.8% of sales compared to 9.5% in the first half of 2024).
Adjustments to EBIT (detailed in Appendix 1) amounted to €32.4 million in the first half of 2025, compared to €21.9 million in the first half of 2024. These include restructuring costs related to the consolidation of our logistics platforms in North America and the closure of a resilient flooring plant in the United Kingdom.
EBIT amounted to €51.5 million in the first half of 2025, down from €59.9 million in 2024.
Financial result amounted to €-36.1 million in the first half of 2025, compared with €-27.4 million in the first half of 2024. This decrease is mainly due to the increase in gross debt over the period related to acquisitions and to the end of certain interest rate hedges renewed at less favorable market conditions. The tax expense amounted to €13.8 million in 2025, stable compared to 2024 (€13.4 million).
The Net profit (group share) for the first half of 2025 was -0.2 million, i.e. diluted earnings per share of 0.00.
Revenue and EBITDA by segment for the first half of 2025
Net revenue by segment
In millions of euros
H1 2025
H1 2024
Change
Organic growth (1)
EMEA
448.8
439.3
+2.2%
+1.6%
North America
395.4
446.3
-11.4%
-4.3%
CEI, APAC & Latin America
248.4
243.8
+1.9%
+1.2%
Sports
481.0
429.3
+12.0%
+1.1%
TOTAL
1,573.5
1,558.7
+0.9%
-0.2%
(1) Sales price adjustments in the CIS countries are historically implemented to offset currency fluctuations and are therefore excluded from the "organic growth" indicator (see Appendix 1).
Adjusted EBITDA by segment
In millions of euros
H1 2025
H1 2024
Margin 2025
Margin 2024
EMEA
48.9
41.4
10.9%
9.4%
North America
34.4
48.0
8.7%
10.8%
CEI, APAC & Latin America
30.5
27.8
12.3%
11.4%
Sports
53.2
48.6
11.1%
11.3%
Central
-12.0
-17.6
-
-
TOTAL
154.9
148.2
9.8%
9.5%
Comments by segment
The EMEA segment generated revenue of €449 million, up +2.2% including a favorable currency effect of +0.6% compared to the first half of 2024. Demand remains constrained by the macroeconomic environment, particularly in the residential market, where volumes are down despite selective price reductions to support activity.
Adjusted EBITDA for the segment amounted to €49 million, i.e. 10.9% of sales, compared to €41 million/9.4% of sales in the first half of 2024. The increase in volumes more than offset the adjustment of certain products' selling prices, and raw material purchase prices remained lower than in the first half of 2024. Industrial productivity exceeded wage increases, enabling an improvement in the margin compared to last year.
The North America segment generated revenue of €395 million, down -11.4% compared to the first half of 2024, reflecting a like for like decline of -4.3%, a negative currency effect (-1.1%) and a scope effect of -6.0% (disposal of distribution activities in California in July 2024). In the United States, the commercial segments' business was severely impacted between March and May by the slower-than-expected start-up of a new logistics platform. Shipments returned to normal in June, enabling the backlog to be reduced. The residential and hospitality segments were stable compared to 2024 in markets that remain sluggish with no visible signs of recovery.
Adjusted EBITDA for the segment declined to €34 million, or 8.7% of sales, compared to €48 million/10.8% of sales in the first half of 2024. The impact of lower volumes was partially offset by a positive inflation balance and good productivity at production sites.
Revenue for the CIS, APAC and Latin America segment amounted to €248 million, up +1.9% compared with the first quarter of 2024, including like for like growth of +1.2% (excluding sales price effects in the CIS countries) and a positive currency effect (0.6%) linked to the appreciation of the ruble, which was offset by the depreciation of the Brazilian real. In Russia, as expected, volumes were down -6% compared to 2024. Asia Pacific benefited from a good momentum, and volumes in Latin America grew compared to last year in spite of continued weak demand.
Adjusted EBITDA for the CEI, APAC, and Latin America segment rose to €31 million, i.e. 12.3% of sales, compared to €28 million/11.4% of sales in the first half of 2024, thanks to a positive product mix effect and productivity gains that offset higher wages. In the first half of the year, Russia accounted for around 8% of Group sales.
Revenue for the Sports segment rose by +12.0% compared to the first half of 2024, reaching €481 million. Demand for artificial turf fields and athletic tracks in North America remains high, but the market slowed in comparison to the first half of 2024 due to delays in decision-making for the launch of certain projects. Tarkett's organic growth slowed to +1.1%. Acquisitions made in July 2024 contributed to €51 million to the first half of 2025 (+11.9%).
Adjusted EBITDA for the Sports segment rose to €53 million/11.1% of sales, compared to €49 million/11.3% of sales in the first half of 2024. This improvement was mainly due to the contribution of the acquired companies.
1. Balance sheet and cash flow for 2025
Tarkett recorded an increase in working capital in the first half of 2025 (€164.8 million), €43.2 million more than the change in the first half of 2024. The seasonal nature of the business requires an increase in inventory levels during the first half of the year to meet peak demand in the third quarter, but this trend was amplified in 2025 by shipping difficulties in North America and the need to build up safety stocks for certain products following the reorganization of some production lines in Europe. Also, in 2024, the Group kept inventory growth minimal due to higher levels at the end of 2023.
Working capital requirement has also been negatively impacted by the reduction in receivables assigned under the factoring program (-€18.9 million), which amounted to €190.4 million compared to €209.3 million in December 2024. This is mainly due to the seasonal nature of the Sports business and the amount assigned is similar to the level in June 2024 (€191.3 million).
Capital expenditure was kept under control, amounting to €38.2 million in June 2025, compared with €32.5 million in 2024.
Given the increase in working capital requirements, the Group recorded negative free cash flow of €-134.2 million in the first half of the year, a higher consumption than in 2024, when it stood at €-75.9 million.
Net financial debt stood at €617 million at the end of June 2025, compared to €435 million at the end of December 2024, an increase of €182 million linked to seasonality and acquisitions in the Sports business. The debt leverage ratio stood at 1.8x adjusted EBITDA at the end of June 2025, up from 0.5x at the end of December 2024, in line with expectations.The Group has a good level of liquidity of €557 million at the end of June 2025, including €278 million in undrawn RCF, other confirmed and unconfirmed credit lines of €56 million and cash of €223 million.
2. Scope effect
During the first half of 2025, the Group completed two acquisitions in the Sports segment in the United States (Mid-Atlantic Group in Pennsylvania and Deluxe Athletics in Georgia) to strengthen its sports field and athletics track installation capacity. These companies will add about €80 million in annual sales.
3. Update on the public ...
