Financial Data

Company Background

Results for year ended 31 December 2025

Financial Highlights

• FY 2025 performance in line with market expectations

• Revenue of £302.0m (2024: £302.4m), 2.5% growth on a constant currency basis

• In the context of mixed market conditions, gross margins remained robust at 43.7% (2024: 45.3%). Year-on-year variance reflects geographic sales mix effects including Turkish inflation and near-term prioritisation of service recovery following ERP deployment in EMEA

• Adjusted¹ operating profit £32.0m (2024: £40.1m), representing operating margin of 10.6% (2024: 13.3%)

• Excellent adjusted¹ cash conversion of 137.5% (2024: 90.8%) supported by good working capital management, with an adjusted¹ net cash inflow from operating activities of £44.0m (2024: £36.4m)

• Net debt of £60.7m excluding IFRS16 lease liabilities (31 December 2024: £68.2m), representing leverage of 1.4x adjusted EBITDA³ in line with <1.5x guidance

• Final dividend of 1.2p per share proposed, consistent with the Company’s policy for full year dividend cover in the order of three times adjusted¹ earnings

Good strategic progress, strong operational execution and return to revenue growth in all regions

• Management focused on driving strategic progress underpinned by greater focus on pricing, advancement of ERP deployment in EMEA and footprint optimisation in Americas and APAC

• Strategically aligned and value enhancing acquisition of Device Technologies in December 2025, a US-based designer, manufacturer and distributor of specialty cable protection devices

• All three geographic regions delivered year-on-year constant currency revenue growth, with encouraging orderbook momentum heading into 2026

  • EMEA +2.6% year-on-year, with an accelerated growth of 10.8% in H2 as comparatives eased and service levels started to stabilise

  • Americas +2.0% year-on-year, with 3.3% growth in H2 as the region benefited from sustained improvement in pricing performance and continued stabilisation within the wider customer industrial environment

  • APAC + 3.1% year-on-year, with 2.6% decline in H2, as anticipated, following a number of larger projects in late 2024 that did not repeat

Well-positioned for further progress in 2026, FY 2026 expectations unchanged

• Trading-to-date in the new financial year provides confidence in achieving the Board’s expectations for 2026

• Management notes the emerging situation in the Middle East. Whilst the Group has no operating footprint in the region, it continues to monitor potential broader impacts and remains well-positioned with established local supply chains and operational capacity

• Management remains focused on driving margins through operational efficiency initiatives whilst continuing to enhance its “hassle-free” customer proposition

• The Group’s strong balance sheet remains strong, with sufficient headroom to invest in strategic and operational value-enhancing growth initiatives

• With a unique customer proposition, clear strategic priorities and a disciplined approach to capital allocation, Essentra is well-positioned to create strong shareholder value over the medium-term.

Notes

^{1 On a continuing operations basis, before amortisation of acquired intangible assets and adjusting items. Further details can be found in Note 3 of the Condensed Consolidated Financial Statements.}

^{2 A reconciliation of free cash flow and net cash inflow from operating activities is set out in the Financial Review section.}

^{3 Adjusted EBITDA is defined as operating profit before depreciation (and other amounts written off property, plant and equipment), share option expense, amortisation of acquired intangible assets and adjusting items.}

^{4 Presented on a last twelve months basis excluding lease liabilities. £89.0m when including lease liabilities (2024: £97.1m).}