Geberit (GEBN) Q1 2025 earnings summary

Executive summary

• Net sales grew 5.3% year-over-year in local currencies, driven by strong volume, new product launches, and pre-buying ahead of price increases, with all product areas and regions contributing except Western Europe.

• Operating margins remained stable excluding CHF 14 million one-time costs for the Basel/German ceramics plant closure, which impacted reported EBITDA and EBIT margins.

• EPS was CHF 5.69, down 0.7% year-over-year, but would have increased 5.6% excluding one-off costs; share buyback program supported EPS.

Financial highlights

• Net sales reached CHF 878 million, up 4.9% year-over-year (5.3% in local currencies).

• EBITDA was CHF 277 million (+0.7%), margin at 31.5% (down 130 bps due to one-off costs).

• EBIT margin at 27.1% (down 150 bps, stable excluding one-offs).

• Net income was CHF 187 million, down 1.6% year-over-year; net income margin at 21.3%.

• Free cash flow improved to CHF 23 million from -CHF 29 million, driven by better working capital and tax timing.

Outlook and guidance

• Expect slight decline in new build activity in Europe for 2024, offset by positive renovation market; building construction demand in Europe anticipated to stabilize in 2025.

• Mixed outlook outside Europe: strong demand in India and Gulf, decline in China.

• Direct material prices expected to remain stable in Q2; further Basel closure charges anticipated through 2026.

• Strategic focus on expanding piping business, growing shower toilet segment, and optimizing ceramics plants.