Ariston Holding (ARIS) investor relations material

Executive summary

• Q1 2026 delivered solid performance in a volatile macroeconomic context, with net revenue rising 1.2% year-over-year to €656 million, driven by renewables and heat pumps in Europe, especially Germany, while the Americas and Middle East faced headwinds from conflict and FX volatility.

• Water heating in North America had a soft start, and the gas boiler market remained weak except for early recovery in Germany.

• Strategic progress included the Lennox JV launch in North America, the opening of the Wolf Campus in Germany for HVAC training and research, and improved ESG ratings, including an MSCI upgrade to 'A'.

• Free cash flow was negative at -€69 million, reflecting typical Q1 seasonality, deferred CapEx payments, and working capital trends.

• Board of Directors confirmed Maurizio Brusadelli as CEO and appointed Katja Gerber as Chairperson of the Audit & Sustainability Committee.

Financial highlights

• Net revenue reached €656 million, up 1.2% year-over-year on a reported basis and stable organically.

• Adjusted EBIT was €34.1 million (5.2% margin), slightly down from 5.4% in Q1 2025; reported EBITA was €28.1 million.

• EBITDA increased 2.2% to €63.9 million, with a stable margin of 9.7–9.9%.

• Net financial indebtedness increased to €631–671 million from €542–573.7 million at year-end 2025.

• Free cash flow was negative €69 million, impacted by seasonality, deferred CapEx, and working capital.

Outlook and guidance

• Full-year 2026 guidance confirmed: organic revenue growth expected between +1% and +4% year-over-year at constant FX.

• Adjusted EBIT margin expected between 7% and 8%, supported by cost efficiencies and operating leverage.

• CapEx to remain between 5% and 5.5% of revenue, with cash generation concentrated in Q4.

• Positive progress on Riello acquisition, with closing expected by end of H1 2026.

• Continued investments planned in go-to-market, digitalization, R&D, and new products.