Zehnder Group (ZEHN) H1 2026 earnings summary

Executive summary

• Sales grew 3% (3.2% year-over-year) to EUR 394.9 million in H1 2026, driven by strong ventilation segment performance in Europe and North America, while radiator sales declined.

• Ventilation now represents 69% of total sales, up from 66% last year, reflecting strategic focus, new product launches, and expansion in the US and Europe.

• Initiated divisionalization of European operations into separate ventilation and radiator units, incurring EUR 5.5 million in one-off costs in H1 2026.

• Opened new Zehnder Academies and experience centers in Europe and North America to support market penetration and customer education.

• Net profit increased 2% to EUR 23.9 million; adjusted EBIT rose 15% to EUR 37.7 million, with margin improving to 9.5%.

Financial highlights

• Adjusted EBIT margin improved to 9.5% (up from 8.5%); adjusted EBIT up 15% to EUR 37.7 million.

• Net profit was EUR 23.9 million (+2%); adjusted EBITDA rose 11% to EUR 49.8 million (12.6% of sales).

• Total sales reached EUR 394.9 million; ventilation up 7% to EUR 272.1 million, radiator down 5% to EUR 122.7 million.

• Cash flow from operating activities dropped to EUR 5.1 million due to inventory build-up and higher receivables.

• Equity ratio improved to 56% (from 51%); net liquidity positive at EUR 11.9 million (vs. net debt of EUR 12.6 million prior year).

Outlook and guidance

• Full-year 2026 sales expected between EUR 770–790 million, with adjusted EBIT margin to remain at H1 level.

• One-off costs for divisionalization projected at EUR 10 million for 2026.

• Medium-term targets: average annual sales growth of ~5% and adjusted EBIT margin of 9–11%.

• Market recovery in Europe is slow and uneven; North America resilient in multifamily/renovation, China remains weak.

• Price increases of 2% (April) and 4%-5% (July) implemented to offset raw material cost inflation.