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Lagardere: Louis Hachette Group's Strong 2025 Performance Driven by International Footprint and Operational Strength

Louis Hachette Group reported a robust financial performance for 2025, with revenue reaching EUR 9.6 billion, representing a 4% growth on a reported basis. The group's adjusted EBIT was a record EUR 551 million, driven by the strength of its businesses, including Lagardère Publishing and Lagardère Travel Retail. The earnings per share (EPS) was not in line with estimates, coming in at '-1.38178' relative to estimates of '0.04'. The group's net profit was EUR 112 million, a significant improvement from the previous year, supported by lower finance costs and reduced tax burden.

MMB.PA

EUR 18.86

-0.84%

A-Score: 6.1/10

Publication date: February 19, 2026

Author: Analystock.ai

📋 Highlights
  • Record Adjusted EBIT: Achieved €551M in 2025, up €61M from 2023.
  • Total Revenue Growth: Reached €9.6B in 2025, +4% reported growth and +€310M organic growth.
  • Lagardère Publishing Milestone: Crossed €3B revenue threshold with +3% like-for-like growth.
  • Debt Reduction: Net debt fell to €1.6B with leverage under 2x, driven by €363M CFAIT in 2025.
  • Travel Retail Performance: Generated €6.1B revenue (+4.4% like-for-like) and record EBITA of €312M.

Segment Performance

Lagardère Publishing delivered solid performances in 2025, with revenues up 3% on a like-for-like basis, crossing the EUR 3 billion threshold. Lagardère Travel Retail also had a strong year, driven by profitable growth as air traffic normalized, with revenue reaching EUR 6.1 billion. Lagardère Live generated EUR 219 million in revenue, with a slight increase year-on-year, while Prisma Media's revenue was down 9% due to the ongoing contraction of the print press market.

Cash Flow and Debt Reduction

The group's cash flow generation improved significantly, with CFFO increasing from EUR 357 million in '23 to EUR 558 million in '25. This strong momentum allowed the group to continue reducing its debt at a rapid pace, with net debt just below EUR 1.6 billion and a leverage ratio now under 2x. As Gregoire Castaing mentioned, "they're on track to meet their mid-single-digit expectations for January," indicating a positive outlook for the group's cash flow generation.

Outlook and Valuation

The group expects stable revenue in 2026 despite potential headwinds from foreign exchange, with Lagardère Travel Retail anticipating mid-single-digit sales growth. The group's valuation metrics indicate a P/E Ratio of 13.21, P/B Ratio of 3.34, and EV/EBITDA of 6.17. The Net Debt / EBITDA ratio is 3.91, indicating a manageable debt level. Analysts estimate next year's revenue growth at 3.4%, suggesting a steady outlook for the group.

Lagardere's A-Score