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-on-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 margin expansion of 100 basis points year-on-year.

• 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 gradual ramp-up and separate revenue disclosure starting Q2.

• 2025 guidance confirmed, with mid-term outlook unchanged despite macroeconomic uncertainties.

Financial highlights

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

• Adjusted EBITDA rose 14.8% year-on-year to €64.1 million (9.9% margin).

• Adjusted EBIT margin increased by 100bps to 5.4% year-on-year.

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

• Liquidity at €264 million, with €900 million in unused committed credit lines and leverage stable at 2.1x adjusted EBITDA.

Outlook and guidance

• Full-year 2025 guidance confirmed: organic revenue growth of 0-3% year-on-year (excluding Russia), adjusted EBIT margin above 7%.

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

• Cash generation expected to be heavily weighted toward Q4, consistent with historical patterns.

• Mid-term outlook targets mid-single-digit organic growth (neutral FX) and adjusted EBIT margin above 10%.

• Guidance excludes potential impacts from ongoing tariff discussions and macroeconomic volatility.