Earnings call transcript: B&C Speakers H1 2026 sales fall as margins hold up

B&C Speakers reported a 7% decline in first-half 2026 revenue to €47 million as demand weakened in key markets, but the company managed to maintain its EBITDA margins near 20%. Adjusted margin was close to 20% excluding some non-recurring costs, demonstrating strong cost control. The Italian audio-component maker saw a significant improvement in net profit compared to the previous year, bolstered by lower foreign-exchange losses.

Free cash flow from recurring operations was €5.1 million. Major customers L-Acoustics and d&b audiotechnik saw a recovery in orders from September, leading to optimism about future performance. Revenue fell by 7% year over year, but gross margins remained nearly stable, and profitability held up well. The company's business remained resilient despite the slowdown, with Europe being the strongest region and Italy improving.

North America was weaker, particularly in retail and DIY audio, while China remained a significant question mark. The company's largest customers have not lost share with B&C Speakers. Management emphasized tight cost control, improved profitability, and lower foreign-exchange losses as key factors in the positive outcome. The stock fell 1.74% to $11.30, near the lower end of its 52-week range.

Despite the revenue decline and uncertainty in China and North America, the market's response was cautious, with no sharp selloff.