Sonova (SOON) H2 24/25 earnings summary

Executive summary

• Achieved solid growth and market share gains across all business segments, with strong acceleration in the second half driven by successful product launches, notably Infinio Sphere and Sphere Infinio platforms.

• Profitability improved in the second half, with adjusted EBITA margin up 130 basis points year-over-year and 600 basis points sequentially, supported by CHF 40 million OPEX savings from restructuring.

• ESG progress remains on track, with positive rankings and continued commitment to science-based targets and social initiatives.

• 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 is 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 improved by 130 basis points in H2.

• 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.

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

• Dividend proposed at CHF 4.40 per share, up from CHF 4.30.

Outlook and guidance

• FY 2025/26 guidance: 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.

• Guidance includes assumptions of returning to a large US customer, new product launches in the summer, and mitigation strategies for tariff risks.

• Pricing expected to be slightly positive in H1, flattish in H2; meaningful price increase in VA contract included.

• Outlook reflects moderate market slowdown and assumes no major new economic disruptions.