Cembre: a European excellence in electrical connection technology

Cembre is an Italian company specializing in the production of crimp electrical connectors and the tools used to install them, and it has become one of the key players in the sector at a European level. In the first half of 2025, the company showed solid signs of growth: consolidated revenues reached €124.3 million, an increase of +4.0% compared to the same period in 2024.

Net profit grew by 8.6%, reaching €22.6 million (18.2% of revenues), showing that Cembre not only sells more but also manages to generate profit efficiently.

An especially noteworthy element is geographical diversification: while sales in Italy recorded a slight decline (-3.2%), international sales grew by 10.0%. This shift toward global markets appears to be one of the key drivers of recent success.

From an operational perspective, EBITDA stood at €38.5 million, with a 31% margin, a clear improvement over the previous year’s first half.

It’s also worth noting that the group’s net financial position decreased during the semester, shifting to – €23.8 million, mainly due to dividend payments (over €31 million) and capital investments totaling €11.4 million.

Dividends: steady growth that rewards shareholders

One of Cembre’s hallmarks is its dividend history: it has consistently distributed profits for many years and follows a policy aimed at sustainably rewarding shareholders.

• Over the last 20 years, Cembre’s average payout ratio (the percentage of earnings distributed to shareholders) has been about 51.9%.
• In the same period, the average dividend yield has been 3.8%.
• In the most recent 5 years, the average yield has been even higher: 4.4% (2020–2024).

This means that while Cembre takes a conservative approach (it doesn’t distribute all its profits), it maintains a stable and meaningful dividend stream for its shareholders.

How dividends have grown over the years

Looking at the history of dividends per share, there is a clear upward trend, Over the last 13 years, the average dividend growth has been 20.87%!

• In 2015, the dividend was around €0.46/share.
• By 2023, it had risen to €1.80/share, and for 2024 it was set at €1.88/share.
• According to available estimates, the dividend for 2025 is expected to remain close to €1.882/share, with further increases projected in the following years (e.g., €2.034/share in 2026).

This growth is no coincidence: it reflects a well-planned long-term strategy in which Cembre balances profit generation, reinvestment, and shareholder returns. The fact that the average payout is around 50–52% shows that a significant portion of profits is reinvested, but not at the expense of shareholders.

External analyses also indicate that Cembre’s dividends are well covered by earnings (meaning the company has sufficient profit to sustain them) and are considered solid and sustainable.

Conclusion

Cembre is a great example of a well-managed “niche” company: it may not have the visibility of a tech giant, but it has built strong leadership in its segment and a mature financial model. The results from the first half of 2025 show continued growth—supported by international expansion—while consistently rewarding those who believe in the company with stable and rising dividends.

If you’re a dividend-oriented investor, or simply appreciate companies with a long-term vision, Cembre is definitely worth keeping an eye on.

The information provided in this article is for informational purposes only and does not constitute financial advice or an invitation to invest. I am not a financial advisor. Before making any financial or investment decision, you should always conduct your own research, carefully assess the risks, and, if necessary, consult a qualified professional.