Carlo Gavazzi Holding AG (GAV) investor relations material

Executive summary

• Revenue increased 4.9% to CHF 136.9 million, with bookings up 28.1% to CHF 138.3 million year-over-year.

• EBIT dropped 35.8% to CHF 4.3 million and net profit fell 56.1% to CHF 1.8 million, mainly due to restructuring costs and investments in new facilities.

• Board proposes no dividend for the year due to lower net income and ongoing investments.

• Strategic investments in innovation, manufacturing, digitalization, and sustainability continued to strengthen market presence.

• Balance sheet remains strong despite challenging market conditions, with a robust equity ratio and net cash position.

Financial highlights

• Revenue from sale of goods rose 4.9% year-over-year to CHF 136.9 million; bookings surged 28.1% to CHF 138.3 million.

• EBIT dropped 35.8% to CHF 4.3 million; net profit fell 56.1% to CHF 1.8 million, impacted by CHF 2.5 million restructuring charge.

• EBITDA decreased 15.5% year-over-year to CHF 10.4 million.

• Gross margin declined to 53.7% from 54.7%, mainly due to start-up costs at the new Mexico facility.

• Cash flow from operating activities dropped to CHF 4.0 million from CHF 19.6 million year-over-year.

Outlook and guidance

• Favorable momentum in industrial automation in the US, China, and Southern Europe, with building automation recovering.

• Continued investments in R&D, manufacturing, and digital capabilities, including AI and machine learning integration.

• Europe expected to provide stability, with accelerated growth targeted in Americas and Asia.

• Restructuring in Malta is ongoing, with production shifting to Mexico and China.

• Geopolitical complexity and macroeconomic uncertainty require ongoing agility and resilience.