Energy Transition lights up Luceco’s 2025 and pushes guidance ahead for 2026
Luceco’s audited 2025 results show a business riding the electrification wave and converting it into profit and cash. Revenue climbed 11.9% to £271.4 million, powered by rapid growth in EV charging and steady progress in the core ranges. Margins edged higher, debt fell, cash generation surged, and the dividend is up 20%.
Crucially, the Board now expects 2026 Adjusted Operating Profit to exceed £37 million, above analyst consensus of £34.7-£36.5. There is also potential upside from newly emerging Demand Flexibility revenues linked to EV chargers.
Key numbers investors should know
| Metric | 2025 | Change vs 2024 |
|---|---|---|
| Revenue | £271.4m | +11.9% |
| Like-for-like revenue (ex acquisitions and FX) | +4.6% | – |
| Adjusted operating profit | £33.8m | +16.6% |
| Adjusted operating margin | 12.5% | +0.5ppts |
| Adjusted basic EPS | 15.0p | +20.0% |
| Adjusted free cash flow | £30.4m | +£26.9m |
| Bank net debt | £52.3m | -23.8% |
| Leverage (Bank net debt: EBITDA) | 1.2x | from 1.6x |
| Proposed full year dividend | 6.0p | +20.0% |
Like-for-like simply strips out currency and acquisition effects so you see the underlying trend. Operating margin is profit as a percentage of sales – edging up suggests stronger pricing, mix, and manufacturing efficiency.
Where the growth came from: EV chargers outpace the market
Energy Transition products were the standout. EV charging sales jumped 84.7% to £18.1 million, materially outperforming new EV sales in the UK. That growth creates a larger installed base for Luceco’s Sync Energy platform to monetise over time.
The core ranges did their bit too. Wiring Accessories and LED Lighting grew by around 2% for the year, with second-half momentum picking up. Like-for-like growth accelerated to 6.7% in H2, up from 2.0% in H1 – a healthy run-rate going into 2026.
Channel and geography mix
- Retail was a touch softer like-for-like (-0.8%), while Hybrid grew 11.4% and Professional Wholesale rose 8.4%. Combined, Retail and Hybrid were up 4.1% like-for-like.
- The UK remains the engine room at £214.6 million, up 16.5% and just under 80% of Group revenue.
- Europe grew 12.1%, while the Americas fell 10.7% amid tariff/trade headwinds. Middle East and Africa were down 8.7% and Asia Pacific down 20.0%.
Margins, cash and balance sheet: disciplined execution
Adjusted operating profit rose 16.6% to £33.8 million, with margin up 50bps to 12.5%. Management points to manufacturing leverage from its Chinese facility, procurement savings, and cost discipline as drivers.
Adjusted free cash flow soared to £30.4 million as working capital swung in Luceco’s favour after 2024’s Red Sea-related inventory build. Leverage reduced to 1.2x, comfortably within the 1.0x-2.0x target range, giving headroom for organic investment and bolt-on M&A. The new £120 million revolving credit facility runs to May 2028 with an option to extend to 2030.
The dividend steps up to 6.0p, covered 2.5x by earnings, with a proposed final dividend of 4.2p payable on 22 May 2026 to holders on 10 April (ex-div 9 April).
Segment performance: steady core, improving lighting, strong portable power
- Wiring Accessories: revenue £131.4m, Adjusted operating profit £19.4m, margin 14.8% (down from 17.5% as mix and acquisitions bed in). Still the biggest profit contributor at 57% of Group operating profit.
- LED Lighting: revenue £79.3m, Adjusted operating profit £6.3m, margin up to 7.9% from 5.2% on streamlining and project demand for energy-saving retrofits.
- Portable Power: revenue £60.7m, Adjusted operating profit £8.1m, margin 13.3% vs 10.5%. Energy Transition products under Sync Energy and Masterplug offset tougher conditions in traditional reels and extensions.
Why 2026 guidance is higher – and what could turbocharge it
Luceco says like-for-like growth has continued into early 2026 with double-digit revenue growth in the first two months. The Board now expects 2026 Adjusted Operating Profit to exceed £37 million, ahead of the £34.7m-£36.5m consensus.
The swing factor is Demand Flexibility. In simple terms, this is a new regulatory framework that pays distributed assets like EV chargers to shift demand to match grid capacity. Luceco has over 10,000 chargers already generating this revenue today. The company notes 2025’s revenue was immaterial but is becoming more meaningful in 2026. There is significant upside if enrolment scales, though economics and customer response rates will evolve as the market matures.
Strategy in action: product, channels and M&A
Management is leaning into faster-growth Energy Transition categories while defending strong positions in Wiring Accessories, LED and Portable Power. Product innovation is a clear theme, from the Sync Energy Link EV charger’s two-part design to a new HEMs platform integrating batteries, hybrid inverters and energy controls, plus higher power three-phase chargers in development.
M&A is doing what it should. D-Line and CMD are integrating well, with sourcing efficiencies and operational synergies starting to come through. A consultation to consolidate D-Line’s UK facility should simplify operations and support margins.
Risks to watch
- Supply chain concentration in China and shipping route disruption remain structural risks, although Luceco holds UK buffer stock, owns tooling, and has business continuity and insurance in place.
- Commodity exposure, particularly copper, and FX movements can squeeze margins, albeit hedging policies are in place.
- Geopolitics and tariffs weighed on the Americas in 2025 and could continue to do so. The Board also flags uncertainty around the Middle East.
- Demand Flexibility upside is real but regulatory economics may tighten near term and enrolment depends on end-user participation. Treat it as optionality, not a base-case guarantee.
My take: a high-quality way to play electrification, with cash to back it
This is a solid set of numbers. Growth accelerated through the second half, margins ticked up, and cash generation was excellent. The balance sheet is stronger and the dividend is moving up in line with policy.
The Energy Transition engine is clearly working. EV chargers at £18.1 million are still a relatively small piece of the Group but growing quickly and now tied to a software-led revenue opportunity in Demand Flexibility. Meanwhile, the core categories are resilient and cash generative, with Lighting profitability improving nicely.
What could disappoint? Any sharp slowdown in UK activity would be felt given the 80% exposure, and international recovery is not guaranteed. Also, Wiring Accessories margin was lower year-on-year as the mix evolves, so watching how integration and pricing land in 2026 will be important.
Overall, the upgrade to >£37 million Adjusted Operating Profit for 2026, plus optional upside from Demand Flexibility, reads positively. For investors seeking exposure to the electrification theme with vertical integration, strong channels and disciplined capital allocation, Luceco looks well set for another year of profitable growth.
