Sonova (SOON) H1 25/26 earnings summary

Executive summary

• Combined Hearing Instruments and Audiological Care sales grew 7% in local currencies, about twice the estimated market growth, with strong product launches and market share gains.

• Sales reached CHF 1,815.4 million, up 4.9% in local currencies but down 1.0% in Swiss francs due to currency headwinds.

• Margin improvement in local currencies, with normalized EBITDA/EBITA up 16% to CHF 316 million and margin expansion of 180 basis points, was largely offset by FX headwinds.

• Performance in Hearing Instruments and Audiological Care offset by headwinds in Consumer Hearing and Cochlear Implants, especially from tariffs and China market challenges.

• Outlook for FY 2025/26 confirmed, targeting 5-9% sales growth and 14-18% normalized EBITDA/EBITA growth at constant exchange rates, supported by innovation leadership.

Financial highlights

• Group sales: CHF 1,815.4 million (+4.9% in local currencies, -1.0% in CHF); organic growth 4.5%, acquisitions 0.4%.

• Normalized EBITDA/EBITA: CHF 316 million (+16% in local currencies); margin up 180 basis points.

• Normalized EPS grew 20.1% in local currencies; basic EPS CHF 3.16, up 10.4% in local currencies but down 9.7% in CHF.

• Free cash flow: CHF 37.5 million, down year-over-year; operating cash flow up 12% due to improved working capital.

• Net debt to EBITDA at 1.5x, improved from 1.8x a year ago; equity ratio at 44.4%.

Outlook and guidance

• FY 2025/26 guidance: 5-9% sales growth and 14-18% normalized EBITDA/EBITA growth at constant exchange rates.

• Market growth expected at 1-3% for the next six months, reflecting macroeconomic uncertainties and tariffs.

• Currency headwinds expected to reduce reported sales growth by 6 percentage points and EBITDA/EBITA by 13-14 points.

• Sequential improvement expected in Consumer Hearing and Cochlear Implants in H2.

• Assumes no significant new tariffs or major disruptions beyond those already known.