RATIONAL (RAA) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales revenue increased by 3% year-over-year to €295.3 million, with strong growth in North America (+11%) and Europe (+7%), while Asia declined 20% due to prior-year one-off orders.

• EBIT margin remained robust at 24.4%, close to pre-crisis levels, and annual 2024 sales reached €1.194 billion.

• iVario product group sales grew by 10%, especially strong in the Americas, while iCombi grew by 2%.

• Non-equipment business represented 32% of Q1 sales, growing by 5%.

• Celebrated 25 years on the stock exchange, highlighting innovation and stability.

Financial highlights

• Gross margin improved to 59.2% (up 0.7pp year-over-year), supported by favorable product mix and strong demand in higher-priced regions.

• EBIT increased by 1% to €72.1 million, with an EBIT margin of 24.4%.

• Operating costs rose 10%, mainly due to higher R&D and sales/service costs.

• Equity ratio stands at 82% and liquidity ratio at 45%, reflecting a robust balance sheet.

• Net income after taxes was €56.9 million, up 1% from Q1 2024.

Outlook and guidance

• Full-year 2025 sales and revenue growth expected in the mid-single-digit percent range, with EBIT margin guidance at 26%.

• Gross margin for 2025 expected to be slightly lower than 2024 due to lower care product prices and higher operating costs.

• Input costs forecasted to remain stable for the remainder of 2025.

• R&D costs projected at 5-6% of sales, with headcount planned to reach 2,800 by year-end, focusing on sales staff.

• CapEx plans for 2025 are around €40 million.