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ASBIS Enterprises Plc Reports Record $75.3 Million Net Profit, Leading Industry Growth

Historic Financial Performance Achieved

ASBIS Enterprises Plc reported a net profit of $75.3 million for the year ending December 31, 2025, according to results released on February 25, 2026. The figure marks the strongest annual performance in the company’s history.

Robust Revenue Growth And Strategic Focus

The Cyprus-based IT distributor posted record revenue of $3.86 billion, up 28.4% from $3.01 billion a year earlier. Fourth-quarter sales reached $1.25 billion, increasing 34.6% year on year. December revenue exceeded $500 million for the first time.

Growth was supported by a strategy focused on higher-margin products, expansion of value-added services, and development of proprietary brands including AENO, Canyon, and Lorgar.

Capitalizing On Emerging Technologies

Expansion in AI server and data-centre infrastructure became a key growth driver. Sales in the servers and server blocks segment rose 96.9% in Q4, reflecting rising demand for AI-related infrastructure and the company’s shift toward higher-value categories.

Financial Resilience And Operational Efficiency

Gross profit reached $311.6 million in 2025, up 12.3% year on year, while gross margin declined slightly to 7.22% from 7.98%. Total assets increased to $1.49 billion from $1.20 billion at the end of 2024. Operating cash flow reached $209.2 million in Q4.

Operating expenses rose 15.6% to $189.7 million, mainly due to higher personnel costs and marketing investments supporting expansion.

Diversification And Global Market Penetration

Geographical diversification remained a major contributor to growth. Sales in Taiwan increased 268% in Q4. The company also maintained operations in challenging markets such as Ukraine, supporting continuity despite geopolitical risks.

Expanding Retail Footprint And Future Business Lines

Beyond distribution, Asbis expanded its retail presence by opening a Bang & Olufsen flagship store in San Francisco and operating 32 Apple Premium Reseller outlets across seven countries. New business lines, including the Breezy trade-in platform and ASBIS Robotic Solutions, are expected to support growth in 2026.

Outlook: Confidence And Optimism

The company maintained its dividend policy, including an interim dividend of $0.20 per share paid in December 2025. Management expects further growth supported by a strong balance sheet, expansion into higher-margin categories, and continued investment in technology-driven segments.

Mercedes-Benz Posts Higher Profit Despite China Slowdown

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

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