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Investing.com -- Pluxee NV (EPA:PLX) reported strong fiscal 2025 results on Thursday, with total revenues reaching €1,287 million, representing 10.6% organic growth year-over-year, slightly exceeding analyst expectations.
The company’s shares edged down 0.6% following the announcement.
The employee benefits and engagement solutions provider delivered robust performance across its key financial metrics, with operating revenue growing 10.3% organically to €1,125 million, while float revenue increased 12.6% organically to €162 million.
The company’s recurring EBITDA rose 22.2% organically to €471 million, driving margin expansion of 230 basis points to 36.6%, well above the company’s fiscal 2025 objective of 150 basis points.
Pluxee’s employee benefits segment, which represents the bulk of the company’s business, saw operating revenue increase 12.0% organically to €963 million, supported by strong new client development and a solid net retention rate of 100%.
"Closing Fiscal 2025, we are proud that the Group has once again outperformed in its second year as a standalone Group," said Aurélien Sonet, Chief Executive Officer of Pluxee. "Throughout the year, we accelerated the execution of our strategy to further strengthen our global leading position in Employee Benefits and Engagement."
The company generated record recurring free cash flow of €417 million, up 10.0% YoY, resulting in an 89% recurring cash conversion rate, significantly above its three-year average objective of 75%. This strong cash generation helped boost Pluxee’s net financial cash position to €1,163 million, up €108 million from the previous year.
Looking ahead to fiscal 2026, Pluxee has adjusted its revenue growth outlook while upgrading its profitability targets. The company now expects high single-digit organic revenue growth, down from its previous low double-digit target, while raising its recurring EBITDA margin expansion target to 100 basis points from 75 basis points previously.
The company announced plans to return significant capital to shareholders, including a proposed dividend of €0.38 per share, up 9% YoY, and the launch of a €100 million share buyback program, reflecting management’s confidence in the company’s outlook despite macroeconomic uncertainties in some markets.