Ariston Holding (ARIS) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked a return to revenue growth and margin improvement after the 2024 downturn, with organic net revenue up 2.4% year-over-year to €648 million, driven by European heating demand, renewables, and product mix optimization.

• Adjusted EBIT rose 26.3% to €35 million (5.4% margin), reflecting efficiency initiatives and cost control.

• Free cash flow improved to -€17 million from -€51 million in Q1 2024, supported by higher EBITDA and better working capital management.

• The Russian subsidiary was reconsolidated as of March 26, 2025, with revenue to be reported separately from Q2 and gradual ramp-up expected.

• Innovation and new product launches in Australia, Europe, Egypt, and China, including eco-friendly heat pump water heaters, supported growth and sustainability goals.

Financial highlights

• Net revenues increased 2.1% year-over-year to €648 million, with organic growth of 2.4% and all geographies returning to growth.

• Adjusted EBITDA rose 14.8% to €64.1 million (9.9% margin), and adjusted EBIT margin improved by 100bps to 5.4%.

• Free cash flow was -€17 million, a significant improvement from -€51 million in Q1 2024.

• Net financial indebtedness increased to €627 million, with leverage stable at 2.1x adjusted EBITDA and liquidity at €264 million.

• CAPEX increased to €15.3 million, in line with guidance and supporting future development.

Outlook and guidance

• Full-year organic revenue growth guidance of 0-3% year-on-year (like-for-like, excluding Russia) confirmed.

• Adjusted EBIT margin expected above 7% for FY 2025, supported by efficiency initiatives.

• CAPEX guidance maintained at 5-6% of net revenues, focused on development projects.

• Cash generation remains weighted toward Q4, consistent with historical patterns.

• Mid-term outlook targets mid-single-digit organic growth and adjusted EBIT margin above 10%, with ongoing M&A activity supported by €0.9 billion in committed credit lines.