Ontex stock price declines, 2026 guidance disappointing, Q4 earnings weak

LootboxPhobia · 2026-02-12T13:41:10+00:00

Ontex Group stock fell 3.2% due to poor Q4 performance. Facing weak demand and supply chain challenges, the company expects EBITDA growth by 2026 to be below analyst expectations. In 2025, the company's revenue declined by 4.9%, free cash flow was negative, and net debt decreased. The new CEO stated that performance did not meet expectations and that the focus moving forward will be on restoring sales and cost transformation.

LootboxPhobia

2026-02-12 13:41:10

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Investing.com - Ontex Group’s stock fell 3.2% on Thursday after the personal hygiene product manufacturer reported disappointing Q4 results and issued a 2026 guidance below analyst expectations. The company experienced a challenging 2025 fiscal year, marked by weak demand and supply chain constraints.

The Belgian company reported an adjusted Q4 EBITDA of €39 million, with profit margins narrowing by 3.0 percentage points to 8.9%, about 7% below analyst consensus.

Quarterly revenue declined 6% year-over-year to €436 million, reflecting continued weak demand for baby care products in Europe and North America.

For the full year 2025, Ontex achieved revenue of €1.76 billion, down 4.9% year-over-year, with adjusted EBITDA margin narrowing by 2 percentage points to 10%.

The company reported free cash flow of negative €25 million, compared to positive €48 million in 2024. However, thanks to proceeds from the divestment of emerging market businesses, net debt decreased by 6% to €577 million.

New CEO Laurent Nielly stated, “Our performance in 2025 clearly did not meet expectations. While we continue to push forward with our business transformation, the pace has been insufficient to offset unexpected market demand declines and our own execution challenges.”

Looking ahead, Ontex’s 2026 guidance expects adjusted EBITDA to grow approximately 10%, about 2% below analyst consensus, with a gradual improvement expected throughout the year, starting from a “soft” first quarter.

The company anticipates revenue to remain largely stable, free cash flow to turn positive, and leverage ratio to fall to 3x or lower by year-end.

The company has initiated a strategic review to unlock additional value creation, focusing on restoring sales growth, expanding cost transformation initiatives, and prioritizing cash generation.

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