Carel Industries (CRL) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered strong organic revenue growth of 14%, surpassing expectations, with all regions contributing and EBITDA margin reaching a seven-quarter high, returning to 2023 levels.

• Year-to-date revenue reached €463.7M, up 7.1% year-over-year (8.4% organic), with growth broadly distributed across regions and markets.

• HVAC was the main growth driver, especially in data centers, with over 14% organic growth in Q3; refrigeration rebounded with double-digit organic growth.

• Strong cash generation reduced net debt to €14.8M from €50.2M at 2024 year-end, positioning the group as net cash positive excluding IFRS 16 effects.

• EBITDA for the first nine months was €91.9M, up 15.7% year-over-year, with margin at 19.8% (up from 18.3%).

Financial highlights

• Reported revenue for the first nine months: €463.7M, up 7.1% year-over-year (8.4% organic).

• Adjusted EBITDA rose 15.7% to €91.9M, margin improving to 19.8% from 18.3% last year.

• Net profit increased 6.6% to €42.3M, despite the absence of extraordinary items and negative FX effects.

• Free cash flow for the nine months was €63.35M, up from €17.9M last year.

• CapEx was €14.2M, down from last year’s record €22M.

Outlook and guidance

• Q4 2025 revenues expected to be broadly in line with Q3, maintaining substantial growth over Q4 last year.

• No significant changes in trends anticipated; some caution due to December volatility and strong Q4 2024 comparables.

• Guidance assumes no unforeseen negative geopolitical developments.