Zumtobel Group (ZAG) Q3 24/25 earnings summary

Executive summary

• Revenues for the first nine months declined 1.4% year-over-year to EUR 828.1 million, with a sharper 5.7% drop in Q3 due to challenging market conditions and weak demand, especially in Southern and Eastern Europe.

• Adjusted EBIT fell 10.7% to EUR 41.0 million, and net profit dropped 39.1% to EUR 13.0 million, impacted by special effects of EUR -13.1 million mainly from restructuring in France, Germany, and Australia.

• Adjusted gross profit margin improved to 36.8% from 35.5% despite weaker demand and higher personnel expenses.

• Notable project wins included refurbishments and installations in Austria, Germany, Egypt, and the Notre-Dame Cathedral in Paris.

• Sustainability efforts were recognized with a Prime Status ESG rating from ISS ESG.

Financial highlights

• Lighting segment revenues dropped 1.7% to EUR 652.0 million, with adjusted EBIT margin at 6.1% (down from 8.4%).

• Components segment revenues grew 1.8% to EUR 226.6 million, with adjusted EBIT margin up to 5.9% (from 1.8%).

• Group Q3 revenues were EUR 250.5 million (down 5.7%); adjusted EBIT was minus EUR 0.2 million (margin -0.1%).

• Net profit for nine months was EUR 13.0 million; EPS EUR 0.31 (down from EUR 0.50).

• Free cash flow for nine months was EUR 15.6 million (down from EUR 28.9 million); net debt increased to EUR 115.0 million.

Outlook and guidance

• Revenue forecast revised to slightly below prior year due to weak demand and project delays; previous guidance was for slight growth.

• Adjusted EBIT margin guidance confirmed at 3–6% for the full year.

• CAPEX (excluding IFRS 16) revised to EUR 50 million, down from prior guidance of EUR 60 million.

• Recovery anticipated earliest in H2 2025, with growth expected in most sectors in 2025.

• Strategic focus on renovation, maintenance, and new product launches to capture non-residential construction recovery.