Zumtobel Group (ZAG) Austrian Select Conference summary

Company overview and market positioning

• Operates as a €1.1 billion European-focused lighting company, with most sales and production in Europe and some component manufacturing in China.

• Offers a full value chain from components (modules, drivers) to luminaires, with two main brands and a growing Smart Building Solutions segment.

• Focuses on professional markets such as retail, industry, offices, education, healthcare, and outdoor infrastructure.

• Differentiates through added-value solutions like sensors, IoT, and smart building integrations, especially against lower-cost competitors.

• Recent projects include sports arenas, major retail chains, data centers, and landmark architectural sites.

Financial performance and outlook

• Group revenues for Q1–Q3 2025/26 declined by 6.4% to EUR 775.0 million, with adjusted EBIT down 21.5% to EUR 32.2 million and net profit falling 31.3% to EUR 9.0 million.

• Lighting segment revenues dropped 5.1% and components segment revenues fell 11.7% year-over-year.

• Adjusted gross profit margin improved slightly to 37.3%, supported by lower material and personnel costs.

• Full-year 2025/26 revenues are expected to be in the single-digit percentage range below the previous year, with an adjusted EBIT margin forecasted at 2.5–4%.

• A multi-year efficiency program aims to deliver up to EUR 50 million in annual cost savings by 2028/29.

Market trends and strategic positioning

• The global lighting market is shifting from products to integrated solutions, with strong trends in smart, connected, and sustainable lighting.

• Key growth drivers include public investment in non-residential construction, green energy transition, and mega-projects in infrastructure and data centers.

• Regulatory changes, such as the EU's Energy Performance of Buildings Directive, require more energy-efficient and connected lighting solutions.

• The group is moving up the value chain, expanding into smart building solutions and leveraging partnerships with Siemens, ABB, and Legrand.

• Focus on sustainability, wellbeing, and connected lighting aligns with industry trends and regulatory drivers.