RATIONAL (RAA) Pre-close call summary

Executive summary

• Sales revenues for 2025 reached €1.26 billion, up 6% year-over-year, with organic growth at 8% after adjusting for FX effects.

• North America and Europe drove growth, while Asia saw a decline due to large customer order volatility and FX impacts.

• Sales organization expansion post-crisis has restored growth to historic levels, with continued focus on building sales capacity in high-potential markets.

Trading performance and revenue trends

• North America posted 8% growth (14% organic, FX-adjusted); Europe grew 9% with broad-based gains.

• Asia declined 11% due to large customer order swings, but underlying 'street business' grew 6%.

• iVario segment outperformed with 10%+ growth, double the rate of iCombi.

• Price increases of 4-5% in the U.S. were well accepted by customers.

Profitability and margins

• Gross margin slightly below prior year but better than expected, aided by stable input costs and offsetting tariffs.

• EBIT margin for 2025 was 26.4%, slightly above initial guidance.

• For 2026, EBIT margin guidance is 25-26%, reflecting higher tariffs, alloy surcharges, logistics costs, and continued investment in sales and R&D.

• Price increases will gradually benefit margins as contracts renew, but higher COGS from tariffs and surcharges will weigh on profitability.