Sonova (SOON) H2 25/26 earnings summary

Executive summary

• Achieved strong FY 2025/26 results, fully meeting guidance with 5.9% sales growth in local currencies, strong market outperformance, and improved profitability, driven by innovation and operational excellence.

• Hearing Instruments segment led performance with double-digit growth in H2 and the highest YOY market share gain in six years.

• Cochlear Implants segment faced headwinds, especially in China due to VBP and competition, but expects improvement with a new processor launch in H2 2026/27.

• Announced and completed divestment of Consumer Hearing business; figures now reflect continuing operations only.

• Board proposes highest-ever dividend of CHF 4.70 per share and three new Board candidates.

Financial highlights

• Group sales reached CHF 3,605.9 million, up 5.9% in local currencies, with second-half growth accelerating to 7.9%.

• Normalized EBITA increased 17.3% in local currencies to CHF 811.2 million, margin up 240bps to 23.7%.

• EPS (normalized) rose 16% to CHF 10.42; board proposes a 7% dividend increase to CHF 4.70 per share (payout ratio ~45%).

• Operating free cash flow remained strong at CHF 519.1 million, with cash conversion consistently above 90%.

• Gross profit margin stable at 73.7% in local currencies.

Outlook and guidance

• Expects FY 2026/27 sales growth of 5–8% and core EBIT growth of 7–10% at constant exchange rates.

• Market growth anticipated at 2–4%, normalizing to 3–5% midterm; FX expected to reduce reported sales growth by 1–2 percentage points and EBIT by 3–4 points.

• Wholesale to benefit from strong product pipeline; Retail to see robust organic growth and M&A support.

• Cochlear Implants to face continued first-half headwinds, with anticipated second-half recovery post-processor launch.

• Non-core items projected at CHF 35–40 million, mainly restructuring and M&A integration costs.