Essilorluxottica Stock Earnings Reports

Key points for investors: EssilorLuxottica reported a record 2025 with revenue of EUR 28.5bn (+11% at constant currency) and a very strong Q4 (+18% cc). Adjusted operating profit was EUR 4.5bn despite ~EUR 300m headwind from U.S. tariffs and adverse FX; free cash flow reached a record EUR 2.796bn and net debt/EBITDA was 1.7. Wearables (AI glasses) are a major growth engine: >7 million AI glasses sold in 2025, triple‑digit growth for Ray‑Ban and Oakley wearables in key markets, and AI glasses materially contributed to Q4 strength. Management is pivoting toward a med‑tech, data‑driven strategy (oculomics, diagnostics, predictive medicine), with increased OpEx and CapEx to scale R&D, manufacturing and commercialization. Myopia management is a highlighted clinical growth area: the Stellest portfolio grew ~22% globally, Stellest is FDA‑authorized (first spectacle lens with such authorization in the U.S.), ~4,000 U.S. doors trained/equipped, and Stellest 2.0 is being rolled out and prepared for FDA filing. Margins: gross margin fell ~260bps year‑over‑year (roughly one third from tariffs, two thirds from AI glasses product mix/dilution); OpEx rate improved by ~170bps but operating profit margin declined ~70bps at constant FX. Management reiterated a new 5‑year outlook targeting aligned growth of revenues and operating profits, while flagging near‑term headwinds from tariffs and FX and continued upfront investment to support wearables/med‑tech scale. Capacity and supply: company says it has production scale and plans (internal plants in China/Thailand plus external partners) to meet demand ramp; close partnership with Meta. Near‑term risks: FX (USD weakness vs EUR), tariff annualization in 2026, and margin dilution from the current product mix; upside comes from pricing/mix gains, higher penetration of prescription lenses and coatings on AI units, and operating leverage as wearables scale.