RATIONAL (RAA) Pre-close call summary

Executive summary

• Q1 2026 sales revenue reached EUR 318 million, up 8% reported and over 11% adjusted for FX, with 2–3 percentage points attributed to pre-buying ahead of U.S. price increases.

• North and South America and Europe drove growth, while Asia, especially China, underperformed with a 3% sales decline.

• iVario product group grew 18%, outpacing iCombi at 6%; long-term expectations are 10–15% for iVario and mid-single digits for iCombi.

Trading performance and revenue trends

• Pre-buying in Q1 shifted EUR 6–8 million in sales from Q2, causing a slowdown in order intake in April and May, but a strong rebound in June.

• Order backlog at Q2 end is EUR 10–15 million higher than previous quarters, expected to ship in Q3.

• U.S. market showed strong demand, with Q1 organic growth at 23% due to pre-buying; double-digit growth expected to continue.

Profitability and margins

• Gross margin declined by 150 basis points year-over-year, mainly due to a 240 basis point negative impact from tariffs, partially offset by lower warranty and productivity gains.

• EBIT margin for Q1 2026 was 23.9%, about 50 basis points lower than Q1 2025.

• Tariff refund of EUR 40 million in Q2 is a one-off, positively impacting EBIT margin.

• Higher costs for components, raw materials, and logistics are expected to offset the tariff refund, keeping EBIT margin guidance at 25–26%.