Ariston Holding (ARIS) Q4 2025 earnings summary

Executive summary

• Achieved a return to growth in 2025 with four consecutive quarters of year-on-year expansion, outperforming the market and delivering both revenue and profitability growth, driven by strong performance in renewables and heat pumps, especially in Germany, despite a challenging European heating market and adverse FX impacts.

• Strategic progress included expansion in renewables, top quartile ESG ratings with validation of decarbonization targets, and a balanced technology portfolio supporting resilience amid market shifts.

• Significant investments in new plants in Serbia, Egypt, Italy, and India, and key acquisitions and partnerships (Riello, Lennox JV, DDR Heating, Z.R.E.) to reinforce market position and future growth.

• Strategic M&A and partnerships, including Riello acquisition and Lennox JV, enhanced global presence and product offering, with reconsolidation of Ariston Thermo Rus LLC.

• ESG ratings improved significantly, with validation of 2030 decarbonization goals.

Financial highlights

• Full-year net revenues reached €2.7 billion, up 2.8%–3% organically year-over-year; Q4 net revenues were €747 million, up 2.1%–2.8%.

• Adjusted EBIT for 2025 was €193 million (7.1% margin), up from €160 million (6.1%) in 2024; Q4 adjusted EBIT was €79 million (10.5% margin).

• Adjusted EBITDA margin improved to 11.5% from 10.5% year-over-year.

• Free cash flow for the year was €125 million, lower than prior year due to higher CapEx and normalized working capital.

• Adjusted net profit for FY 2025 was €112.9 million, up 26.9% year-over-year; net profit reached €132.4 million.

Outlook and guidance

• 2026 organic net revenue growth expected between +1% and +4% year-on-year, with gradual improvement over quarters.

• Adjusted EBIT margin guidance of 7%-8% of revenue, supported by cost efficiencies and operating leverage.

• CapEx planned at 5%-5.5% of revenues, focused on capacity expansion, innovation, and digital initiatives; cash flow generation to remain seasonally concentrated in Q4.

• Guidance excludes potential disruptions from recent geopolitical developments in the Middle East.

• Strategic update and long-term guidance to be provided by year-end, post-Riello acquisition closing.