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The call presents a strongly positive operational and commercial momentum — record revenue growth, record free cash flow, fast consumer adoption of AI glasses and clear progress in myopia management (including FDA authorization) and geographic expansion. These positives are tempered by near-term margin pressure driven by tariffs, unfavorable FX, higher interest costs and product‑mix dilution from the high growth of lower-margin wearables and upfront investment. Management expects scale, price/mix improvements and product evolution to drive margin recovery over the medium term and reaffirmed a 5-year outlook aligned for revenue and operating profit growth.
EssilorLuxottica said it is fully on track with its long‑term outlook and updated a five‑year plan to deliver broadly aligned growth in revenues and operating profit: FY25 revenue €28.5bn (+11% at constant currency) with Q4 +18.4% cc (+12.1% reported), adjusted operating profit €4.5bn (after ~€300m U.S. tariff and adverse FX headwind), record free cash flow €2.8bn and net debt/EBITDA of 1.7; the group sold >7m AI glasses in 2025 (AI wearables materially contributed to growth but weighed on gross margin, which fell ~260bps), OpEx fell ~170bps as a % of sales, operating‑profit margin was down ~70bps at constant FX (~100bps reported) and net profit down ~50bps cc (~70bps reported); Q4 regional cc growth was North America ~+24%, EMEA ~+16%, Asia Pacific ~+12% and Latin America ~+8%; management expects continued upfront OpEx/CapEx to scale Med‑Tech and wearables, margin recovery as scale is reached, an annualization of tariffs and FX headwinds into 2026, and will review progress at a mid‑year checkpoint (January started with a double‑digit month).
FY2025 revenue EUR 28.5bn, +11% at constant currency; Q4 revenue +18.4% at constant currency (+12.1% at reported FX). Fourth quarter was the strongest quarter of the year with double-digit growth across major regions.
Record free cash flow EUR 2.796bn in 2025 (EUR 400m higher than prior year). Net debt-to-EBITDA at 1.7 at year-end, supporting continued investment and M&A.
Sold more than 7 million AI/wearable glasses in 2025 with AI/glasses driving triple-digit growth in the frames category (notably Ray‑Ban and Oakley). AI glasses were a key revenue contributor in H2 and Q4; company highlighted strong attachment rates: ~20% of AI glasses sold with prescription lenses and 40–50% penetration of transition coatings on AI products, enhancing price/mix.
Myopia management portfolio revenue +22% in 2025. Stellest remains the first and only spectacle lens with FDA authorization in the U.S.; Stellest 2.0 launched in China showing ~2x lower axial length growth over 12 months vs prior generation. ~4,000 doors in North America trained and equipped for Stellest; myopia represents ~27% of Greater China revenue.
North America Q4 +23.8% (ccy); EMEA Q4 +15.7% (ccy); Asia Pacific Q4 +11.6% (ccy); Latin America Q4 +7.6% (ccy). Many key markets and banners delivered double-digit growth in Q4 (e.g., Italy, Spain, U.K., Turkey, India, Australia).
Renewed long-term licensing with Burberry through 2035; launched MIU MIU collaboration; named A$AP Rocky Ray‑Ban creative director; Oakley 50th anniversary and Winter Olympic visibility; Oakley Vanguard and Ray‑Ban Meta Display among notable new product rollouts.
Created Scientific Advisory Committee with world-class experts; investments in oculomics, med‑tech, chips/semiconductor partnerships and smart eyewear labs. Sustainability: CDP climate rating 'A' and S&P Global Corporate Sustainability Assessment score 66, ranked third in the industry.
Management updated a 5-year roadmap aiming to deliver broadly aligned growth of revenues and operating profits, reflecting expectation that scale and price/mix improvements (including from wearables, lenses and services) will accelerate profit over time.
Good morning, and good afternoon, everybody. This is Giorgio Iannella from the IR team. Thank you for joining EssilorLuxottica Interim Results Management Call. The Group Chairman and CEO, Francesco Milleri; the Deputy CEO, Paul du Saillant; and the CFO, Stefano Grassi, will walk you through the business and financial highlights of the first half of the year. After their presentations, there will be a 30-minute Q&A session [Operator Instructions]. With that, I hand it over to Francesco.
Welcome back, everyone, and thank you for joining us today. I'm pleased to reconnect with you and to share where we stand with the execution of our new strategy, which is clearly driving the group business momentum. This is in line with our plans, and I believe it will become more and more visible in the near future as the new projects, products and medical services will translate directly into numbers. 2025 marked a year of sharp acceleration for EssilorLuxottica as we manage our deep transformation from a traditional optical company into a leading med-tech and data-driven group. This broader scope now better defines and makes clear our core business, strategic focus and investment priorities. The new ambition of our group is to shape the future of health and human performance. This evolution represents the key engine behind our faster revenue growth and the driver of the positive progression of our profits. The strong increase of revenue in the fourth quarter reflects the solid performance of our overall business, further reinforced by our clear leadership in wearable and med-tech.
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