Groupe SEB Launches 'Rebound' Plan After Profits Tumble in 2025

ECULLY, France – February 25, 2026 – Groupe SEB, the global household appliance conglomerate behind brands like Tefal, All-Clad, and Rowenta, has announced a sweeping strategic overhaul after a challenging 2025 that saw its profitability plummet despite maintaining stable sales. The company's Operating Result from Activity (ORfA) fell by a stark 25% to €601 million, even as annual revenue saw a slight organic increase of 0.3% to €8.169 billion.

In response, the company is launching the 'Rebound plan,' a comprehensive initiative designed to achieve €200 million in recurring savings and restore its profitable growth trajectory. The plan includes significant organizational changes that will impact up to 2,100 jobs worldwide.

“In an environment that remained complex, Groupe SEB recorded a slight organic sales growth in 2025, but a marked decrease in its profitability, reflecting a difficult year,” said Stanislas de Gramont, Chief Executive Officer of Groupe SEB. He cited major cyclical headwinds, including US tariffs and currency volatility, as key factors that innovation and momentum in certain product lines could not fully offset.

Navigating a Storm of Global Headwinds

Groupe SEB’s 2025 performance paints a clear picture of a multinational corporation grappling with external economic pressures that have eroded its bottom line. The 25% drop in ORfA, which saw the operating margin shrink from 9.7% in 2024 to 7.4%, was attributed to a trio of significant factors, each costing the company approximately €40 million.

The direct and indirect effects of US tariffs heavily impacted results in North America, a challenge echoed across the industry. Competitors like Philips and De'Longhi also factored tariff impacts into their 2025 forecasts, with some anticipating price increases in the US market. For Groupe SEB, this resulted in a wait-and-see attitude from retailers and a 4.5% organic sales decline in the region for the year.

Currency volatility, particularly the strengthening of the euro against emerging market currencies, created another major financial drag. Compounding these macroeconomic issues were market-specific challenges, such as the La Niña climate phenomenon in South America, which dampened demand for fans and contributed to a 5.9% organic sales decline in the region.

Furthermore, the Professional business, which includes high-end coffee machines, saw its contribution drop by €40 million in the first half of the year. This was largely due to a particularly high comparison base from a major coffee contract in 2024, a period when competitors like De'Longhi's professional division were reporting exceptional triple-digit growth.

The 'Rebound Plan': A Blueprint for Reinvention

Faced with these persistent challenges, Groupe SEB's 'Rebound plan' is an aggressive move to reshape the company for future growth. The plan is built on accelerating innovation, intensifying consumer engagement through digital marketing, and leveraging artificial intelligence to boost efficiency. It aims to deliver €200 million in recurring annual savings by the end of 2027.

These savings will be achieved through three main pillars: reducing indirect purchases, improving industrial efficiency, and optimizing overheads. However, this restructuring comes at a human cost. The plan is expected to impact up to 2,100 positions globally. In Europe, up to 1,400 roles will be affected, including a potential 500 voluntary departures in the company's home country of France.

This strategy mirrors actions taken by other industry giants. Nestlé is targeting CHF 3.0 billion in cost savings by 2027, and Philips has also been implementing a multi-billion euro productivity program. For Groupe SEB, the goal is to simplify its organization and enhance operational agility to better respond to a market defined by rapid innovation cycles and shifting consumer behavior.

A Mixed Picture Across Global Markets

A closer look at regional performance reveals a heterogeneous landscape. The EMEA region posted moderate organic growth of 2.0%, with strong double-digit increases in Eastern European markets like Poland and the Czech Republic. However, this was partially offset by underperformance in Germany, where the electrical cooking market declined.

Asia provided a more positive story, returning to organic growth of 2.7%. In China, the Group's Supor brand reaffirmed its leadership in kitchen electrics and cookware, successfully leveraging the rapid expansion of social commerce platforms like Douyin (TikTok), which now account for around 25% of its online sales. This digital-first approach in a key market highlights a potential pathway for growth in other regions.

In the Americas, the situation was more difficult. North American sales returned to organic growth in the fourth quarter as the tariff situation began to normalize, but the full-year decline was significant. The drop in South America, driven by poor fan sales, underscored the vulnerability of seasonal product lines to unpredictable climate events.

Financial Health and Future Outlook

The financial headwinds of 2025 have left their mark on Groupe SEB's balance sheet. Net debt increased by €416 million to €2.34 billion. This rise was driven by the lower operating result, increased working capital needs, and significant cash outflows, including €121 million for acquisitions and a €189.5 million payment for a fine imposed by the French Competition Authority.

Despite the pressure on profitability and rising debt, the Board of Directors proposed maintaining the dividend at €2.80 per share, a signal of confidence in the company's long-term strategy and its ability to generate cash flow. The company anticipates growth in its operating result in 2026 and aims to reduce its financial leverage over the next two years.

On a positive note, the company highlighted its strong extra-financial performance, having been awarded a double A- rating by the Carbon Disclosure Project (CDP) for its climate and water management efforts. Supported by the 'Rebound plan,' Groupe SEB confirmed its medium-term ambition to return to its historical trajectory, targeting 5% annual organic sales growth and an operating margin that progresses from 10% toward 11%.