Zumtobel Group (ZAG) Q1 26/27 earnings summary

Executive summary

• Revenues for Q1 2026/27 were EUR 264.1 million, down 0.9% year-over-year, reflecting a challenging market but stable topline performance.

• Adjusted EBIT increased to EUR 8.2 million (up 25% year-over-year), and net profit turned positive at EUR 4.2 million, reversing a prior year loss.

• Efficiency and transformation measures contributed to margin gains, with special effects of EUR -0.7 million related to these programs.

• Heiner Lang was appointed as designated CEO, effective October 1, 2026, as part of a long-term succession plan.

• Strategic project wins and data center projects in the Nordics are emerging as growth drivers.

Financial highlights

• Adjusted EBIT margin improved to 3.1% from 2.5% year-over-year; adjusted gross profit margin increased to 37.4% from 36.7%.

• Net profit for the period reached EUR 4.2 million, with basic earnings per share at EUR 0.11.

• Free cash flow was negative at EUR -16.4 million, down from EUR -10.6 million year-over-year.

• Equity ratio remained stable at 43%.

• Net debt increased to EUR 148.1 million from EUR 128.5 million sequentially; debt coverage ratio at 1.64.

Outlook and guidance

• Revenue for the full year 2026/27 is expected to remain at the prior year level, with adjusted EBIT margin guidance set at 3% to 5%.

• Planned CAPEX remains at approximately EUR 50 million, excluding IFRS 16.

• Management expects continued challenging market conditions, especially in Europe and construction, but sees medium- and long-term growth from regulatory energy efficiency initiatives.

• Market recovery anticipated to begin in 2027, with new build growth leading and renovation remaining a structural pillar.