Luceco Shares Surge on Upbeat Earnings Guidance

Luceco reports strong FY25 results with 11.9% revenue growth, an 85% surge in EV charging sales, and raises its 2026 profit forecast above market expectations.

Luceco has delivered a robust performance for the 2025 fiscal year, posting significant revenue growth and issuing a forecast for the coming months that exceeds prevailing market expectations. The company's leadership now projects financial targets for the current year that are more optimistic than the consensus among financial analysts.

Financial Performance and Shareholder Returns

The UK-based manufacturer reported a 11.9% increase in annual revenue, reaching £271.4 million. This operational strength translated into improved cash generation, with adjusted free cash flow soaring to £30.4 million from £3.5 million in the prior year. In light of this strengthened financial position, the board approved a 20% increase in the annual dividend, raising it to 6.0 pence per share. Furthermore, the company reduced its net debt to £52.3 million.

A key contributor to profitability was the adjusted operating margin, which stood at 12.5% at year-end.

Electric Vehicle Division Powers Growth

A standout performer was the electric vehicle (EV) charging solutions division, which emerged as the primary growth engine. Revenue from this segment accelerated by nearly 85% to £18.1 million. This rapid expansion underscores the company's successful positioning within the evolving e-mobility sector.

Early trading data for January and February 2026 has continued this positive trajectory, confirming ongoing double-digit organic revenue growth.

Raised Forecasts and Integration in Focus

Management has expressed confidence for the 2026 financial year, guiding for an adjusted operating profit in excess of £37 million. This projection surpasses the previous analyst consensus range of £34.7 million to £36.5 million.

The company stated that the integration of its recent acquisitions, D-Line and CMD, is proceeding according to plan. The successful ongoing assimilation of these subsidiaries is cited as a fundamental pillar supporting the upgraded targets. Achieving the £37 million profit benchmark is now seen as heavily dependent on maintaining this smooth integration process without friction.

Investors responded favorably to the report, sending Luceco shares up approximately 8% to 172.60 GBX. The combination of a strong start to the year and the strategic acquisition strategy forms the basis for the company's optimistic outlook.