Sonova (SOON) H2 24/25 earnings summary

Executive summary

• Achieved solid growth and market share gains across all business segments, with strong acceleration in hearing instruments, audiological care, and consumer hearing in the second half, driven by successful product launches such as Sphere Infinio.

• Profitability improved in the second half, with adjusted EBITA margin up 130 basis points year-over-year and CHF 40 million in structural cost savings.

• Maintained positive momentum despite macroeconomic headwinds, especially in the US, and continued to invest in product innovation and lead generation.

• Board proposes a dividend of CHF 4.40 per share; CEO transition announced with Eric Bernard to succeed Arnd Kaldowski by October 2025.

• Entering FY 2025/26 with momentum from new platforms and structural measures, though market growth expected to be slower due to macroeconomic and trade policy effects.

Financial highlights

• Group sales reached CHF 3,865 million, up 7.6% in local currencies (6.6% in CHF), with 6.4% organic growth and a 1% FX headwind.

• Adjusted EBITA was CHF 808 million, up 7.4% in local currencies and 4.7% in CHF; margin at 20.9%.

• Adjusted EPS rose to CHF 10.81, up 10.6% in local currencies and 7.4% in CHF; operational free cash flow increased 7.2% to CHF 578 million.

• Gross margin improved by 30 basis points in local currency, offset by a 20 basis point FX headwind.

• Net debt/EBITDA ratio improved to 1.2x, within the target range; equity ratio at 45.3%.

Outlook and guidance

• Guidance for FY 2025/26: consolidated sales growth of 5–9% and normalized EBITA growth of 14–18% at constant exchange rates, with reported sales growth in CHF reduced by ~4 percentage points due to FX.

• Global hearing care market projected to grow 1–3%, below historical rates due to macroeconomic and trade policy headwinds.

• EBITDA margin expected to expand by 11–15% (like-for-like, excluding restructuring), or 14–18% (including lower restructuring costs), reflecting ongoing cost discipline.

• Pricing expected to be slightly positive in H1, flattish in H2; guidance includes anticipated return to a major US customer and a meaningful VA price increase.

• Tariff risks in cochlear implants and consumer hearing business are factored into guidance, with mitigation strategies in place.