Ariston Holding (ARIS) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 2025 organic growth of 4.2%, marking the third consecutive quarter of positive organic growth, with performance driven by heat pumps in Europe and solid water heating results.

• Adjusted EBIT for Q3 was €48 million (7.2%-7.4% margin), up 21.3% year-over-year, with margin improvement sustained for three consecutive quarters.

• Free cash flow in Q3 was €15 million, lower than the prior year due to higher CapEx and normalized working capital.

• Announced investment in a new Italian factory for next-generation electric water heaters and acquired a new water heating plant in India to enhance local manufacturing and supply chain flexibility.

• ESG ratings improved, placing the group in the top quartile among peers and validating 2030 decarbonization targets.

Financial highlights

• Q3 2025 revenues increased by 5.8% year-on-year to €668 million, driven by 4.2% organic growth and supported by heat pump recovery in Germany.

• Adjusted EBIT margin improved by 110 basis points like-for-like in Q3, reaching 7.2%-7.4%; 9M 2025 adjusted EBIT was €114.1 million (+17.9% year-over-year).

• Free cash flow was positive at €15 million in Q3, though lower than the prior year due to higher CapEx and working capital normalization.

• Net financial indebtedness at September 30, 2025, was €579 million (ESMA: €672.7 million), with leverage at 2.2x.

• Perimeter changes, including Russian business reconsolidation and two bolt-on acquisitions, contributed to Q3 growth.

Outlook and guidance

• Full-year 2025 organic revenue growth guidance raised to around +3% (previously +1% to +3%), reflecting strong nine-month performance and Q4 trends.

• Adjusted EBIT margin target confirmed above 7% for 2025, driven by cost efficiencies and operating leverage.

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

• Board authorized a buyback program of up to 2 million shares for future LTI plans.

• Mid-term guidance unchanged, expecting mid-single-digit organic growth and adjusted EBIT margin above 10%.