Luceco Lifts FY27-28 Profit Guidance on Strong First-Half Growth

Luceco PLC (LSE:LUCE) has raised its profit guidance for fiscal years 2027 and 2028 after reporting strong top- and bottom-line growth for the first half of 2026. The performance was propelled by exceptional growth in its Energy Transition business, which includes electric vehicle charging products.

First-Half Performance Accelerates

In a trading update released Tuesday, Luceco reported a 13% year-over-year increase in revenue to £143 million for the first six months of the year on an organic constant currency basis. The company noted that growth accelerated from 11% in the first quarter to 15% in the second, with gains across all major product categories and regions.

Adjusted earnings before interest, taxes, and amortization (EBITA) for the first half rose 14% to approximately £15.8 million. The group's EBITA margin saw a slight improvement, increasing by 10 basis points to 11.1%, as pricing discipline and operational efficiencies helped offset headwinds from higher commodity prices, according to the company.

Energy Transition Sales Surge

The standout performer was the company's Energy Transition segment, which saw sales grow by 120% year-over-year in the first half. This division, which includes EV charging and demand flexibility products, significantly outpaced the 6% growth in Luceco's core sales business.

Ad

However, the company cautioned that regulatory changes to demand flexibility mechanics are set to begin in the second half of 2026. Luceco stated these changes will likely reduce recurring revenue per EV charger to what it described as a more sustainable level.

Upgraded Outlook

Luceco maintained its full-year 2026 guidance, stating it still expects EBITA to exceed £40 million. Citing the strong first-half momentum, the board raised its outlook for fiscal years 2027 and 2028, now expecting EBITA to exceed current market consensus of £42.3 million for 2027.

The company also reported that its pre-IFRS16 net debt stood at £69.6 million, with a net debt to EBITDA ratio of 1.5 times, reflecting inventory investments ahead of the second half. The board added that the search for a new chief executive is progressing, with advanced discussions underway with several candidates.