RATIONAL (RAA) Q3 2025 earnings summary

Executive summary

• Sales revenues reached €918.2 million for the first nine months of 2025, up 5% year-over-year, with growth in all major regions except Asia.

• EBIT for the nine-month period was €234.3 million, a 3% increase, with an EBIT margin of 25.5%, returning to pre-pandemic levels.

• Europe, especially Germany, was the main growth driver, with Germany up 18% in Q3 and Europe ex-Germany up 11% in Q3.

• No price increases have been implemented in the U.S. despite competitors raising prices by 4%-10%.

• Celebrated 25 years of stock exchange success, emphasizing innovation and stability.

Financial highlights

• Q3 sales grew by 6% (almost 9% excluding FX), marking the best third quarter ever.

• Gross margin for 9M 2025 was 58.7%, slightly down from 58.9% last year, mainly due to higher COGS from US tariffs.

• EBIT margin was 25.5% for nine months, 25.9% in Q3.

• Net profit after taxes for 9M 2025 was €183.1 million, up 2% year-over-year.

• Operating cash flow for 9M 2025 was €186.6 million, down from €206.7 million last year, mainly due to higher tax payments.

Outlook and guidance

• Guidance for 2025 is confirmed, expecting mid-single-digit sales growth and EBIT margin between 25% and 26%.

• Limited tariff impact expected in 2025; full-year effect in 2026 could reduce margin by about 1 percentage point if no price increases are made.

• Operating costs anticipated to rise slightly faster than sales revenues.

• Growth expected to continue in 2026 and beyond, driven by increased sales force and robust demand.

• Cautiously optimistic outlook despite challenging economic environment.