Zumtobel Group (ZAG) Q2 25/26 earnings summary

Executive summary

• Revenues declined by 6.9% year-over-year to EUR 537.6 million in H1 2025/26, reflecting weak demand, project postponements, and economic uncertainty across core markets and both Lighting and Components segments.

• Adjusted EBIT fell 23.4% to EUR 31.6 million (margin 5.9%), and net profit dropped 26.9% to EUR 13.5 million; EPS at EUR 0.32.

• Efficiency and cost-saving programs are underway, targeting EUR 40–50 million annual savings by 2028/29, with ongoing expansion of shared/global business centers.

• Key projects included Olympic stadium lighting, major refurbishments, and sustainable retail installations.

• Strategic focus remains on resilience, innovation, sustainability, and strengthening market position.

Financial highlights

• Group revenue for H1 was EUR 537.6 million, down 6.9% year-over-year; adjusted EBIT at EUR 31.6 million (margin 5.9%); net profit EUR 13.5 million; EPS EUR 0.32.

• Free cash flow for H1 was EUR 13.7 million, slightly above the previous year.

• Gross profit margin decreased to 37.7% from 38.1% year-over-year.

• Equity ratio stable at 42.8%; net debt at EUR 120 million; debt coverage ratio at 1.47.

• Working capital reduced to EUR 217.6 million, 20.6% of rolling 12-month revenues.

Outlook and guidance

• Management confirms guidance for a single-digit percentage revenue decline and adjusted EBIT margin of 1% to 4% for FY 2025/26.

• CapEx for the year planned at approximately EUR 50 million.

• Market environment remains challenging due to geopolitical risks, volatile procurement, and weak demand, especially in new construction.

• Q3 expected to remain challenging; Q4 rebound needed for higher margin, but project timing remains uncertain.

• Efficiency program expected to deliver EUR 40–50 million in annual cost savings by FY 2028/29.