Lacroix Reports €291.5 Million Revenue Decline Amid Challenges
Lacroix Financial Performance Overview
Lacroix has announced its first-half revenue results for 2025, revealing a total of €291.5 million. This marks a 12.3% decline when comparing to previous periods on a like-for-like basis. The decline reflects ongoing difficulties in the electronics sector, even as their environment segment continues to show positive signs of growth.
Second Quarter Insights
In the second quarter of 2025, Lacroix reported consolidated earnings of €140.4 million, a decrease from €169.4 million during the same period last year. The Group’s activities dropped by 14.2% when considering the Road Signs segment sold in 2024, indicating the pressures faced by the electronics sector compared to the steadier performance of the environment segment.
Breakdown of Revenue Performance
During the first half of the current fiscal year, Lacroix's total sales were €291.5 million, down from €350.3 million in the early months of 2024. On a like-for-like basis, revenue faced a downturn of 12.3%. This trend illustrates the struggle within Electronics activities, while Environment segments are demonstrating resilience.
Electronics and Environment Segments
Electronics experienced a 19% revenue drop, falling to €105 million in Q2 2025, with substantial declines in various segments except for Home and Building Automation Systems (HBAS). Automotive activities were adversely affected as some programs phased out, and there were delays in PCB deliveries caused by component shortages.
Positive Outlook for Environment Activities
Conversely, the Environment segment recorded €35.4 million in revenue in the same quarter, with a 4.1% rise. The growth was temporarily hampered by declines in Street Lighting activities, affected by project delays and contractual completions. However, other segments like Smart Grids and Water are thriving, particularly in markets like Spain and Italy where their subsidiaries are performing well.
Projected Future Developments
Looking ahead, Lacroix anticipates a better-oriented second half of the year. It expects to see moderate revenue recovery outside of North America, boosted by the steady growth within Environment activities and improved performance in Electronics within the EMEA region. However, North American operations may continue to face struggles due to the winding down of several programs.
Strategic Focus and Business Realignment
Lacroix is actively engaging in discussions for the planned exit from its North American subsidy, aiming to finalize by the end of 2025. While these transitions occur, Lacroix will continue to reinforce its focus on firmly established and promising markets for increased sustainability and growth. Their target EBITDA margin of 4% is viewed as achievable despite the downturn in revenue expectations.
Commitment to Innovation and Sustainability
In line with its core philosophy, Lacroix is dedicated to fostering a safer and more sustainable future through innovative technologies. Their commitment to this vision is reflected in the robust industrial IoT solutions and connected equipment designed for multiple sectors. With a family-owned heritage and a revenue of €636 million for 2024, Lacroix is poised to effectively navigate its challenges while leveraging opportunities for growth.
Frequently Asked Questions
What is Lacroix's recent revenue performance?
Lacroix reported a first-half revenue of €291.5 million, down 12.3% compared to last year.
How did the second quarter perform for Lacroix?
The second quarter of 2025 saw consolidated earnings of €140.4 million, reflecting a decline from the previous year's €169.4 million.
What sectors are driving growth for Lacroix?
The Environment segment is showing strong growth, particularly in Smart Grids and Water sectors, despite challenges faced in Electronics.
What are Lacroix's future projections?
Lacroix expects a rebound in the second half of the year with modest revenue growth as it focuses on exiting North American markets and leveraging its core strengths.
How is Lacroix addressing its North American operations?
The company is negotiating its exit from North American operations by the end of 2025, focusing on its stronger markets for continued growth.
About The Author
Contact Caleb Price privately here. Or send an email with ATTN: Caleb Price as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.