Ariston Holding (ARIS) Q2 2025 earnings summary

Executive summary

• Achieved 3.6% organic top-line growth in Q2 2025, with margin improvement driven by efficiency programs and operating leverage; heating segment led by heat pumps, water heating stable.

• Free cash flow improved in H1 2025 despite higher CapEx, reversing typical seasonal trends and supported by strong working capital management.

• Strategic JV with Lennox to accelerate North American water heating market penetration, with product launch planned for 2026.

• Completed two bolt-on acquisitions (DDR Heating in the US and Z.R.E. in Italy) to expand the Components division and access new markets.

• Net profit for H1 2025 was €58.7M, a turnaround from a €31.9M net loss in H1 2024; adjusted net profit reached €38.6M, up from €29.2M.

Financial highlights

• Q2 2025 revenues increased by 5.2% year-on-year to €644M, with 3.6% organic growth; H1 2025 net revenues were €1,292M, up 3.7% year-over-year excluding Russia.

• Adjusted EBIT for Q2 2025 was €31M (4.8% margin), up 13.9% year-on-year; H1 2025 adjusted EBIT was €66M (5.1% margin), up 15.5% year-on-year.

• Free cash flow in Q2 2025 was €3M, with H1 2025 cash absorption narrowing to €14M from €24M last year.

• Net financial indebtedness increased to €680M at June 30, 2025, mainly due to seasonality, acquisitions, and shareholder distributions.

• Liquidity position at €221M, with early repayment of €50M in variable rate debt and €0.9B in committed unused credit lines.

Outlook and guidance

• 2025 net revenue organic growth guidance narrowed to 1%-3% (from 0%-3%), with adjusted EBIT margin expected above 7%, supported by ongoing efficiency programs.

• CapEx guidance confirmed at 5%-6% of net revenue for 2025, with cash flow generation expected to be concentrated in Q4.

• Mid-term outlook unchanged: mid-single-digit organic growth and adjusted EBIT margin above 10%.

• Guidance does not factor in potential second-order effects from tariffs, geopolitical developments, or market adjustments.