RATIONAL (RAA) Q2 2025 earnings summary

Executive summary

• Achieved record H1 2025 sales of EUR 606 million, up 4% year-over-year, with strong growth in North America and Europe ex-Germany, offsetting declines in Asia.

• EBIT rose 3% to EUR 153 million, with an EBIT margin of 25.3% for H1 and 26.1% in Q2, despite FX and tariff headwinds.

• Gross margin remained stable at 59%, with productivity gains and efficiency initiatives offsetting minor tariff impacts.

• Net profit after taxes for H1 2025 was EUR 120.3 million, up 3% year-over-year.

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

Financial highlights

• Sales growth before FX was 5.5% in H1 2025, accelerating from 3.8% in 2024.

• North America sales grew 11% (14% before FX); Europe ex-Germany up 9%; Germany flat; Asia declined due to high prior-year base.

• iVario sales up 9%, iCombi up 4%, non-equipment business grew 7% and now represents 30% of sales.

• Gross profit grew 4% to EUR 358 million, with gross margin up to 59.0%.

• Cash flow from operating activities declined to EUR 79.4 million in H1 2025, mainly due to higher tax payments and increased working capital.

Outlook and guidance

• Full-year EBIT margin now guided to the lower end of 25–26% due to tariffs and FX; sales, gross margin, and OpEx remain on plan.

• Tariff costs for 2025 estimated at EUR 10 million, with 15% U.S. tariffs factored in for H2.

• Sales growth for 2025 expected in the mid single-digit percentage range.

• Gross margin expected slightly lower in H2 due to FX and tariffs, but still within guidance.

• Uncertainty remains due to US import tariffs and exchange rate effects; no material impact expected on competitive position.