Zehnder Group (ZEHN) H2 2024 earnings summary

Executive summary

• 2024 was challenging with contracting markets, but ventilation sales stabilized and grew modestly in H2, especially in North America, now accounting for 16% of total sales.

• Transformation advanced toward indoor climate solutions, with divestment of non-core activities, radiator plant closures, and the acquisition of Siber in Spain to strengthen the portfolio and geographic reach.

• Service business grew to 15% of ventilation sales, and clean air solutions now represent 10%, both contributing to stability.

• Structural and transformation efforts included consolidating production, cleaning up accounts receivable, and shifting to a regional sales model.

• Resilient performance despite geopolitical and economic headwinds, with structural measures stabilizing EBIT.

Financial highlights

• Group sales declined by 7% year-over-year to EUR 705.8 million, with a 4% organic drop in ventilation and 5% in radiators.

• Adjusted EBIT reached EUR 50.1 million (7.1% of sales), but one-off costs of EUR 35.9 million led to a net loss of EUR -2.4 million.

• Operating cash flow was EUR 60.6 million; equity ratio decreased from 67% to 51% due to acquisitions.

• Dividend proposed at CHF 1 per share, down from CHF 1.3 last year, supported by positive cash flow.

Outlook and guidance

• No precise outlook for 2025 due to ongoing uncertainties; guidance will be provided with H1 2025 or as visibility improves.

• Focus remains on growth in Southern Europe, North America, and Eastern Europe, with continued transformation to a solution provider and expansion of service, maintenance, and replacement business.

• Mid-term targets include 5% sales CAGR, 9-11% EBIT margin, and ROCE above 20%.