Zumtobel Group (ZAG) Q2 24/25 earnings summary

Executive summary

• Revenues increased 0.6% year-over-year to EUR 577.6 million in H1 2024/25, with moderate growth in Lighting and stronger performance in Components despite challenging economic and geopolitical conditions.

• Adjusted EBIT rose to EUR 41.2 million (7.1% margin), while net profit declined 13% to EUR 18.4 million due to special effects and higher costs.

• Strategic projects included major installations at St. Peter's Basilica, Hilti Innovation Center, Sunderland Stadium, Paris railway stations, and a new partnership with ABB for intelligent building solutions.

• DACH region, UK, Finland, Ireland, Austria, and Switzerland showed strong sales, while Belgium, CEE, France, and the Americas underperformed.

• Restructuring measures initiated in France, Germany, and Australia impacted results.

Financial highlights

• Adjusted EBIT increased 3% to EUR 41.2 million; adjusted EBIT margin at 7.1%.

• Net profit for the first half was EUR 18.4 million, down 13%; EPS at EUR 0.43, down from EUR 0.49.

• Free cash flow declined to EUR 13.0 million from EUR 23.1 million year-over-year.

• Adjusted gross profit margin improved to 38.1% from 36.3% year-over-year.

• Equity ratio improved to 43.6%; net debt at EUR 89.5 million.

Outlook and guidance

• Sales for FY 2024/25 expected to be at least slightly above previous year; adjusted EBIT margin guidance remains 3–6%, with expectation to reach upper end.

• CapEx spending planned at around EUR 60 million.

• Market outlook for non-residential construction remains weak for 2024, with slight recovery expected in 2025.

• Ongoing economic and geopolitical uncertainties cited as key factors impacting future performance.