Luceco H1 Earnings Call Highlights

Key Points

• Luceco delivered strong first-half results: Revenue rose 13.4% to £142.6 million and adjusted operating profit increased 14.5% to £15.8 million. Energy-transition revenue more than doubled to £18 million, driving much of the growth.
• The company raised shareholder returns and its outlook: The interim dividend increased 16.7% to 2.1 pence per share, while management expects full-year adjusted operating profit to exceed market expectations.
• Cash flow and growth investments remain key considerations: Free cash flow was negative £2.1 million as Luceco built inventory for anticipated second-half demand and invested in EV infrastructure, but leverage improved to 1.5 times EBITDA. The company also sees long-term recurring-revenue potential from its Demand Flexibility charger-management platform, which has more than 30,000 active chargers.

Luceco LON: LUCE reported higher first-half revenue and profit, led by rapid growth in energy-transition products, and said it now expects full-year adjusted operating profit to exceed market expectations.

Revenue rose 13.4% to £142.6 million in the first half, while adjusted operating profit increased 14.5% to £15.8 million. Adjusted profit before tax climbed 19.4% to £12.9 million, and adjusted earnings per share rose 13.6% to £0.067.

Thorsten Müller, who joined the company as chief executive at the start of September, said the group had continued the momentum built in 2025. He highlighted the growing contribution from energy-transition activity, where revenue more than doubled during the period to £18 million, compared with £2 million in the first half of 2022.

The board increased the interim dividend by 16.7% to £0.021 per share.

Energy transition drives growth

Chief Financial Officer Will Hoy said revenue growth accelerated during the half, with like-for-like growth of 12.9% in the first quarter and 14.9% in the second. On a constant-currency basis, revenue was £143.2 million, with underlying like-for-like growth of 13.9%. Currency reduced reported revenue by £0.6 million.

Energy-transition revenue rose 119.5%, while the rest of the core business grew 6.5%. All three operating segments, all four sales channels and every geography recorded growth, according to the company.

• Portable Power revenue increased by £12.8 million, driven by energy-transition activity.
• Wiring Accessories revenue rose by £3.8 million, helped by CMD, which entered the second half with what Hoy described as a healthy order book.
• LED lighting revenue increased by £0.9 million, including a strong first-half contribution from DW Windsor.

Adjusted gross profit increased to £59.8 million, while the adjusted gross margin was broadly stable at 41.9%, despite higher material costs. Hoy said manufacturing productivity, cost controls and pricing discipline supported the margin, and the company was working with customers to pass on increased commodity costs.

Adjusted operating costs rose by about £5 million to £44 million, reflecting investment in electric-vehicle infrastructure, marketing and technical capabilities, alongside wage and salary increases. Luceco also consolidated D-Line warehousing and associated labor into the wider group during the first half.

Portable Power contributed an additional £2.3 million of adjusted operating profit and was the main driver of group profit growth. Wiring Accessories profit fell by £0.4 million because of the timing of material-cost increases, though Hoy said management expected the effect to reverse in coming quarters as pricing actions took effect.

Cash flow weighted to second half

Adjusted free cash flow was an outflow of £2.1 million, compared with an inflow of £10.3 million in the prior-year period. Hoy said the comparison was affected by unusual working-capital timing between December 2024 and January 2025.

Working capital was a £10.1 million headwind during the half as Luceco increased stock to support anticipated second-half trading. Capital expenditure rose £1.1 million to £4.9 million. Inventory increased to £71.2 million and inventory days rose to 145 from 136, reflecting higher volumes, stock building and a larger mix of higher-value energy-transition products.

The company expects stronger cash generation in the second half, although it said cash generation would be lower than in 2025 because of the timing of accounts-receivable collections.

Bank net debt was £69.6 million at the half-year, compared with £68 million a year earlier. Bank leverage improved to 1.5 times EBITDA from 1.6 times and remained within Luceco’s 1-times to 2-times target range. The group had £44.4 million of undrawn facilities, with its facility maturing in May 2029.

EV charging and recurring revenue opportunity

Luceco said it sees continued long-term opportunity from electrification of transport and heating, including EV chargers, heat pumps, solar panels and batteries. The company said a renewables-ready home requires an estimated £200 to £300 more electrical product content than a traditional home.

Its Sync Energy charging products are part of that strategy, alongside electrical accessories needed for EV and other electrification installations. The company said it also sees recurring-revenue potential in Demand Flexibility, its charger-management activity.

More than 30,000 chargers are currently active in Demand Flexibility. Luceco moved to an in-house charger-management platform in the fourth quarter of 2024 and achieved COP-11 metering certification in the first quarter of 2026, applicable to its installed base. Management noted that the regulatory market remains evolving and that the value generated per charger may change over time.

New CEO outlines priorities and outlook

Müller said his early impressions were of a business supported by product innovation, established routes to market, a vertically integrated supply chain and an entrepreneurial team. He said he would provide fuller views at the company’s full-year results in March.

His priorities in coming months include tighter focus and capital allocation, process excellence, and maintaining a decentralized and lean structure with a strong talent base.

The company also outlined product launches across its portfolio, including high-power DC charging, vehicle-to-grid capability and smart portable EV chargers, as well as circuit-protection, wiring-accessory, lighting and trunking products.

Looking ahead, Müller said Luceco continued to experience strong demand across key categories, channels and territories. He added that growth in EV charger sales should support Demand Flexibility revenue and said the company expects adjusted operating profit for the full year to be ahead of market expectations.

About Luceco (LON:LUCE)

Luceco plc manufactures and distributes wiring accessories and LED lighting and portable power products in the United Kingdom, Europe, the Middle East, the Americas, the Asia Pacific, and Africa. It offers wiring accessories, including switches and sockets, circuit protection products, outdoor wiring devices, junction boxes, cable management products, and commercial power and accessories under the British General and Nexus brands. The company also provides LED lighting products, such as residential and commercial, interior and exterior, mains and solar, and work and site lighting products under the Luceco, Kingfisher Lighting, and DW Windsor brand names; and portable power products comprising electric vehicle chargers, extension leads, cable reels, and adapters and accessories under the Masterplug, Ross, and Sync EV brands.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.