Geberit (GEBN) Q1 2026 earnings summary

Executive summary

• Net sales grew 3.4% in local currencies to CHF 873 million, despite a 0.7% decline in CHF due to negative currency effects, with growth driven by both volume and price.

• EBITDA margin improved to 32.5%, up 100 basis points year-over-year, supported by the absence of one-time costs and operational improvements.

• EPS increased by 4.5% in CHF and 9.9% in local currencies, reaching CHF 5.94, with net income up 4.5% to CHF 196 million.

• Extraordinary price increases were implemented to offset higher plastics, copper, and energy costs, with a total expected sales price effect of 2%-2.5% for 2026.

• Direct impact from the Iran conflict is limited to less than 1% of group sales, with supply chains and raw material availability unaffected.

Financial highlights

• EBITDA increased by 2.3% in CHF and 7.5% in local currencies, reaching CHF 283 million.

• EBIT margin rose by 90 basis points to 28.0%, with EBIT up 2.7% in CHF and 8.2% in local currencies.

• Net income margin increased by 110 basis points to 22.4%, with net income at CHF 196 million.

• Free cash flow declined to -CHF 28 million due to tax timing, working capital, and higher CAPEX.

• EPS reached CHF 5.94, up 4.5% in CHF and 9.9% in local currencies.

Outlook and guidance

• Slight growth expected in Europe for 2026, with no broad recovery anticipated; renovation demand (60% of business) expected to see slight growth, while new build activity stabilizes.

• Mixed outlook outside Europe: India expected to grow, China to decline due to new build sector collapse.

• Full-year sales price effect expected at 2%-2.5%, including regular and extraordinary increases.

• Direct material prices expected to rise mid- to high-single digits in Q2 2026 compared to Q1 2026 and Q2 2025.

• Strategic focus on new products, digitalisation, marketing, and logistics expansion.