Zehnder Group (ZEHN) CMD 2025 summary

Strategic vision, transformation, and market positioning

• Transitioned from a component supplier to a leading system and solution provider in HVAC, with ventilation now accounting for 66% of total sales, up from 45% seven years ago, and a comprehensive portfolio and strong life-cycle service offerings.

• Focused on innovative, sustainable ventilation, heating, and cooling solutions, aiming for market leadership in Europe and North America, especially in multi-family homes, light commercial, and renovation segments.

• Service business doubled to 15% of sales in five years, with ambitions to further expand through digital offerings, lifecycle support, and recurring revenue, targeting 15% of sales by 2030.

• Ongoing market consolidation through targeted bolt-on acquisitions, notably Airia, Caladair, and Siber, to accelerate transformation and expand product reach in underrepresented geographies and technologies.

• Maintains top-tier market presence in key European countries, with a phased approach to US market leadership and continued Canadian dominance.

Market drivers and growth opportunities

• Regulatory trends, such as near-zero energy building standards and mandatory ventilation in regions like California, are accelerating demand, with 80% of new European dwellings expected to be low-energy or near-zero by 2027.

• Growing societal focus on healthy indoor environments, energy efficiency, and affordable living space supports long-term market expansion.

• Penetration rates for advanced ventilation remain low in many markets, offering significant growth potential, especially in North America.

• Expansion into renovation and multi-family homes, supported by tailored products and recent acquisitions like SEBER in Spain.

• Service and replacement business expected to provide stable, recurring revenue, reducing dependency on new build cycles.

Innovation, product development, and sustainability

• Emphasis on heat recovery ventilation and new products like ComfoAir Q, ComfortClime, and ComfortDuct Attivo, targeting energy efficiency, comfort, and ease of installation.

• Investment in digital services, IoT connectivity, automation, and remote monitoring to enhance product value, operational efficiency, and customer loyalty.

• Asset-light assembly model and focused R&D on noise reduction, energy efficiency, and compact design support scalable growth and regulatory compliance.

• Six competence centers across Europe drive a robust pipeline of new product development.

• Training and education initiatives, including academies and partnerships, address labor shortages and drive market adoption.