Shares in commercial lighting and power firm Luceco (LUCE) jumped 8% to 172p after the firm raised its FY26 guidance. The increase came on the back of strong FY25 results and positive momentum into the current financial year.
Strong start to 2026
The company said it made ‘excellent’ progress in 2025 with revenue up 11.9% to £271 million and 4.6% organic growth. EV charging sales were up a whopping 84.7% to £18.1 million, and sales overall showed a marked acceleration in H2.
Adjusted operating profit rose 16.6% to £33.8 million, representing a margin of 12.5% against 12% previously. Since 2023, operating profit has risen over 15% annually per year due to ‘continued momentum from the Energy Transition’.
Adjusted free cash flow soared to £30.4 million from £3.5 million in FY24, when the firm’s working capital outflow increased. Net debt fell by £16 million to £52 million, meaning leverage was 1.2 times against 1.6 times previously.
CEO John Hornby commented: ‘We delivered another strong performance in 2025, with momentum building through the year, again demonstrating the group’s ability to deliver compound growth.’
Momentum has continued into FY26, with LFL revenue growth accelerating to double digits driven by group-wide performance. Therefore the board sees FY26 operating profit of over £37 million against analysts’ forecasts of £34.7 million to £36.5 million.
We have liked Luceco for a long time based on the strength of its commercial and industrial lighting offering. Now it seems the Energy Transition business is helping drive revenue and earnings as well and is behind the upgrade.
The firm says its Energy Transition products have ‘materially’ outperformed new EV sales in the UK. It has also started to generate revenue from the participation of EV chargers in Demand Flexibility.
Luceco has a large installed base of chargers of which over 10,000 are already generating revenue. The company says there is ‘significant potential upside’ to profit as more are enrolled, subject to the regulatory framework.
The firm has a solid balance sheet which means it can invest in organic growth and/or bolt-on M&A in order to boost profits. Given the upside potential, a sub-13 times rating for the shares even with today’s jump doesn’t look demanding.
Read the press release here: https://www.lucecoplc.com/investors/
