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Essentra PLC on Thursday said revenue and order intake rose in the third quarter of the year but it ‘remains cautious’ about the timing of a market recovery. The Oxford, England-based manufacturer of plastic and metal hardware components said revenue in the third quarter was 5.9% higher at constant currency on a like-for-like basis. ‘The improved performance was delivered whilst continuing to navigate mixed market conditions, as indicated by widely reported manufacturing PMI trends. Group new order intake increased by 5.6% in Q3 compared to the prior year, with September returning to Q2 2025 levels following seasonally softer trading in July and August,’ Essentra said. ‘Consistent with H1 2025, EMEA revenue performance during the period was mixed. The region returned to year-on-year growth against soft prior-year comparatives, further supported by a strong relative performance in Turkey, which continues to benefit from faster-growing end-markets, the implementation of pricing initiatives and local currency devaluation. EMEA ex-Turkey experienced subdued demand across the quarter, particularly in higher margin UK and Western European geographies.’ Trading in the Americas ‘maintained its year-on-year growth momentum’. ‘The APAC region continues to be driven by market dynamics in China, supported by a number of business wins in faster-growing end-markets,’ Essentra added. The firm added that year-on-year revenue growth and an improving order intake trend has continued into October. ‘While the group remains cautious about the timing of any material recovery in market conditions, actions taken to streamline the cost base and optimise operations will protect profitability and allow Essentra to benefit from significant operational gearing as market conditions improve,’ it added. ‘Given the strength of Essentra’s operations in Turkey, which generate lower margins compared to the rest of EMEA, the group’s overall gross margin was slightly weaker than expected in the period and this effect is likely to continue into the final quarter of the year. As such, management now anticipates that the full year adjusted operating margin will remain consistent with the first half of the year.’ Essentra’s adjusted operating margin in the first half weakened to 10.8% from 13.7%. Shares in the company were down 7.2% at 98.70 pence in London on Thursday afternoon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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