Pretax losses rose sharply at Glen Dimplex last year following a fall in revenue, new financial accounts said.
The electrical goods firm, controlled by the Naughton family, said the losses were linked to significantly dampened demand for heat pumps, but added that the order book for this year showed “green shoots” for the business.
New group accounts published by Glen Dimplex Europe Holdings Limited said sales fell from €875.2 million to €793.6 million in the year to the end of September 2025, while operating losses almost doubled to €29.2 million.
Sales in the European Union fell from €466.9 million to €426.7 million, while revenue from non-EU countries declined 15.8 per cent to €229.2 million. Revenues in the United States and the rest of the world remained stable.
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The group, founded by the late Martin Naughton, said it had faced a “marketwide weakness” in the demand for heat pumps in recent years due to a slowdown in building, renovation and high electricity prices relative to gas.
It added that “lingering policy uncertainty” in key markets such as France also caused challenges for the firm, but “momentum has improved significantly” since September last year.
A note in the directors’ report said that by the end of May 2026 the firm’s order book was the “strongest we have seen in some years” due to encouraging policy measures in France and Germany.
“Energy price volatility arising from a range of geopolitical factors, including the war in Iran, have also refocused policymakers and other stakeholders on the importance of accelerating the electrification of energy following a stalling of momentum over recent years,” the directors said.
“Based on this more supportive policy and market environment, structural tail winds and impact of self-help measures over recent years, the directors are confident that the group is optimally positioned for growth.”
Directors also said the turnaround in fortunes expected in 2026 could be partly attributed to restructuring measures put in place by the business.
Last year, Glen Dimplex consolidated many manufacturing operations globally and reduced its headcount from 4,500 to 3,900. That saw restructuring costs rising from €26.4 million to €28.7 million.
Once restructuring costs and a €5 million donation by the company to the Trinity Foundation, a charitable trust run by the third-level institution, were factored in, the group booked a €67.6 million pretax loss, compared with €7.7 million the previous year.
Directors Fergal Naughton, Neil Naughton and Yvonne Burke still approved the payment of a €2 million dividend to the Naughton family. The payout was significantly lower than the €13.2 million paid in 2024.
Following the payment of the dividend, the business was still sitting on accumulated profits of €297.1 million.
Last month, Glen Dimplex founder Martin Naughton (87), who started the business in 1973, died, having taken ill while travelling in the US.
He grew the group into one of Ireland’s largest privately-owned manufacturing businesses and one of the world’s largest manufacturers of domestic appliances.
