LACROIX Reports First Half Revenue Decline, Future Growth Expected

LACROIX's Revenue Report for First Half of 2025

In recent financial disclosures, LACROIX reported a first-half revenue of €291.5 million, reflecting a decrease of 12.3% compared to the same period last year. This downturn primarily stems from challenging conditions in the Electronics sector, even as the Environment segment continues to show positive momentum.

Second Quarter Performance Insights

For the second quarter of 2025, LACROIX's consolidated revenue stood at €140.4 million, down from €169.4 million during the corresponding quarter in 2024. Notably, if we exclude the recently divested Road Signs segment, the company saw a steeper decline of 14.2%. The challenges faced by Electronics activities are evident, while the Environment segment has maintained its upward trajectory.

Detailed Financial Overview

In total, LACROIX's revenue took a hit, dropping from €350.3 million in the first half of 2024. The Electronics division faced significant challenges, with the second quarter revenue falling to €105 million. The Automotive sector experienced particular strain due to the phase-out of several product lines, and the Industry segment was affected by project delays. Interestingly, the Avionics & Defense area, while facing some temporary setbacks, showed resilience with activity levels 39% higher compared to last year, suggesting a robust underlying demand.

Environment Segment Growth

In contrast, LACROIX's Environment operations recorded significant strength, with revenue of €35.4 million in Q2 and overall growth of 9% in the first half. This growth was mainly driven by Smart Grids and Water sectors, particularly in Spain and Italy, despite setbacks in the Street Lighting segment due to contract completions and delivery issues.

Future Outlook for LACROIX

Looking ahead, LACROIX anticipates a better second half of 2025. Efforts are focusing on solidifying growth within the Environment segment, underpinned by favorable regulatory and technological trends. Meanwhile, a gradual improvement is expected in the Electronics operations, specifically in EMEA, while the North American segment is currently navigating through restructuring, with the firm looking to divest its U.S. subsidiary.

Commitment to Sustainability and Growth

As an innovative family-owned company, LACROIX emphasizes sustainable growth and technological advancement. They design and manufacture IoT solutions and electronic equipment catering to various sectors, reinforcing their commitment to providing secure technology that enhances environmental sustainability.

Conclusion and Next Steps

LACROIX's full-year revenue projections have been adjusted, reflecting ongoing changes in operations, particularly in North America. The Group remains committed to achieving a target EBITDA margin of 4%, demonstrating resilience amid adversity. Furthermore, LACROIX plans to unveil its 2027 roadmap to investors, underscoring a long-term vision that sits at the core of its business strategy.

Frequently Asked Questions

What was LACROIX's revenue in the first half of 2025?

LACROIX reported a revenue of €291.5 million for the first half of 2025.

Which segment saw a decline in revenue for LACROIX?

The Electronics segment experienced a significant decline in revenue during the first half of 2025.

What growth did the Environment segment achieve?

The Environment segment recorded a revenue growth of 9% in the first half of 2025.

What challenges is LACROIX facing in its Electronics division?

The Electronics division is facing challenges due to project delays, market conditions, and the phase-out of certain product lines.

How does LACROIX plan to improve its financial performance going forward?

LACROIX plans to focus on its Environment segment's growth while gradually improving electronics operations in EMEA and divesting from North America.

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