Zehnder Group (ZEHN) investor relations material

Executive summary

• Ventilation segment drove 24% sales growth, now 66% of total sales, offsetting radiator declines amid price pressure and weak renovation demand.

• Integration of Siber (Spain) is ahead of plan, expanding product portfolio and market reach, with first sales outside Spain and closure of Swiss production site completed.

• Strategic focus remains on transforming from component manufacturing to HVAC system solutions, supported by investments in product innovation and market coverage.

• Radiator business continued its negative trend, especially in Germany and China, with a shift toward lower-priced products and subdued renovation activity.

• Multifamily housing and new-build construction are driving recovery in key markets, while single-family and renovation lag.

Financial highlights

• Revenue increased 11% year-over-year to €382.8 million in the first half of 2025, with organic growth of 8%.

• Adjusted EBIT rose 45% to €32.7 million (8.5% margin); net profit increased 229% to €23.5 million, with no one-off effects.

• Operating cash flow grew 60% to €22.9 million despite higher receivables from increased sales.

• EBITDA margin improved to 11.7% from 10.2% year-over-year.

• Equity ratio declined to 51% from 68%, mainly due to the Siber acquisition.

Outlook and guidance

• Full-year 2025 sales expected between €740–770 million, with adjusted EBIT margin to remain at first-half levels.

• Mid-term targets: sales CAGR of 5%, EBIT margin 9–11%, ROCE above 20%.

• Cost savings from radiator plant closure to materialize in H2 2025; no major exceptional items anticipated.

• Key markets expected to recover at varying paces; Germany's stimulus impact and US housing market remain uncertain.