Ariston Holding (ARIS) Q2 2025 earnings summary

Executive summary

• Achieved 3.6% organic revenue growth in Q2 2025, with margin improvement driven by efficiency programs and operating leverage; H1 2025 net revenues reached €1,292M, up 1.4% year-over-year, led by heating recovery and stable water heating.

• Adjusted EBIT for H1 2025 was €66M (5.1% margin), up 15.5% year-over-year; 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.

• Free cash flow improved in H1 2025 despite higher CapEx, with €3M generated in Q2 and H1 cash absorption narrowing to €14M from €24M last year.

• Strategic partnership with Lennox in North America and acquisitions of DDR Heating (US) and Z.R.E. (Italy) strengthened the Components Division and expanded market presence.

• Reconsolidation of Russian subsidiary as of end March 2025 resulted in a €40.2M gain on bargain purchase, impacting reported results.

Financial highlights

• Q2 net revenues reached €644M, up 3.6% organically year-over-year; H1 net revenues were €1,292M, up 3.7% organically excluding Russia.

• Adjusted EBIT for Q2 was €31M (4.8% margin), up from €27M (4.3%) in Q2 2024; adjusted EBITDA for H1 was €124.5M (9.6% margin), up from €113.2M (8.9%).

• Free cash flow improved to €-14.1M in H1 2025 from €-23.9M in H1 2024; Q2 free cash flow was +€3M.

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

• Basic and diluted EPS for H1 2025 were €0.16, compared to €-0.09 in H1 2024.

Outlook and guidance

• 2025 guidance confirmed: organic net revenue growth narrowed to +1% to +3% year-over-year (previously 0% to +3%), with adjusted EBIT margin expected above 7%, supported by efficiency programs.

• CapEx guidance at 5–6% of net revenue for 2025; cash flow generation expected to be concentrated in Q4 due to seasonality.

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

• Guidance does not factor in potential impacts from tariffs, geopolitical developments, or ongoing market adjustments.