Financial performance
​Financial performance
Operating income
The consolidated revenues of Royal Ahrend declined by 13,7% to €236,1mln (2024: €273,7mln). This decrease was driven by a lower order backlog at the end of 2024 and reduced order intake in 2025, in an environment characterised by limited availability of new projects, a restrained investment climate and budget reductions. Commercial strategic initiatives to mitigate these effects proved effective and are expected to contribute from 2026.
Direct margin on cost of raw materials and consumables remained stable at 50,2% (2024: 50,5%), supported by effective cost management that compensated for inefficiencies typically associated with lower activity levels.
Wages and salaries were broadly stable year on year, with higher wage costs offsetting the effects of lower workforce levels resulting from reduced activity and automation. Depreciation and amortisation increased compared with the prior year, in line with higher capitalised investments. Other operating expenses remained broadly stable year on year. Management focused on actively adjusting variable and discretionary cost categories in response to lower activity levels, while continuing to invest in structural and long‑term cost items that support Royal Ahrend's future operations.
Total operating income was negative. Lower volumes were not fully offset by cost savings amid continued strategic investments, including substantial focus and resources dedicated to the continued evolution of the IT landscape.
In 2025, the non‑recurring expenses within operating expenses amounted to €2,1mln (2024: €3,3mln) and mainly related to costs associated with the ERP implementation and personnel‑related expenses.
EBITDA
EBITDA was significantly impacted by lower activity levels during the year (€5,4mln in 2025 versus €26,4mln in 2024). EBITDA excludes non-recurring expenses.
Financial expenses and taxes
Interest expenses increased year on year, mainly due to higher interest on lease arrangements and increased use of bank facilities. Net financial expenses were nevertheless lower, driven by positive currency translation differences.
Income tax expense reflected the lower result before tax and the geographic mix of taxable results.
Net result
The net result after non-recurring expenses of 2025 ended at €15,1mln negative (2024: €4,8mln positive).
Solid financial base
Solvency decreased to 37,3% following the net loss for the year, while equity remained solid. Positive operating cash flow was offset by investments and financing movements, resulting in a lower net cash position than the previous year, while the balance sheet total decreased mainly as a result of the net loss compared with 2024.
Outlook 2026 and beyond
Royal Ahrend’s mid‑term plan (2024–2027) focuses on targeted growth, cost discipline and further integration of the supply chain. In 2026, priorities include volume growth, backed up by the order book, continued IT transformation and portfolio optimisation to support improved future performance. The existing credit facility is expected to be sufficient to fund daily operations and planned initiatives. Management closely monitors global developments and associated risks and proactively manages potential impacts.