Zehnder Group (ZEHN) H2 2025 earnings summary

Executive summary

• Group sales rose 8% year-over-year to €760.7 million, driven by record ventilation sales exceeding €500 million, significant market share gains, and the Siber acquisition in Spain.

• Ventilation now accounts for 66% of total sales, with expanded service offerings and successful integration of acquisitions.

• Radiator segment faced market-induced pressure, leading to capacity adjustments, cost reductions, and plant closures.

• Transformation into a system provider for ventilation and indoor climate solutions continued.

• Net profit reached €47.8 million, reversing a prior-year loss.

Financial highlights

• Adjusted EBIT increased 30% to €65.2 million, with EBIT margin at 8.6%; EBIT in euros up 348% to €63.4 million.

• Operating cash flow rose 32% to €80 million, enabling full repayment of the €60 million syndicated loan.

• Adjusted EBITDA margin improved to 11.7%; ROCE rose to 22.1%, surpassing the mid-term target.

• Equity ratio improved from 51% to 59%, with net liquidity at €32.8 million versus net debt of €11.8 million prior year.

• Dividend proposed at CHF 1.40, up 40% year-over-year, with a payout ratio of 36%.

Outlook and guidance

• Market environment expected to be slightly more positive in 2026, with pockets of recovery in Europe and stable but constrained North American markets.

• No full-year guidance provided; outlook to be updated mid-year as visibility improves.

• Midterm targets of 5% growth and 20%+ ROCE reaffirmed as achievable if market stabilizes; EBIT margin target of 9-11% before one-off effects.

• Continued focus on North American expansion, European penetration, and service business growth.

• Emphasis on innovation and cost discipline, with no repeat of 2025's strong growth spurts in NL and UK expected.