Zumtobel Group (ZAG) Q4 25/26 earnings summary

Executive summary

• Revenue declined 5.2% year-over-year to EUR 1,040.4 million, reflecting weak demand, price pressure, and challenging market and economic conditions, especially in construction and key European markets.

• Net profit dropped sharply to EUR 1.0 million from EUR 15.5 million last year, leading to a recommendation to suspend dividend payments.

• Adjusted EBIT fell to EUR 42.4 million (margin 4.1%), down from EUR 46.9 million, mainly due to lower volumes and price declines.

• Strategic focus is on operational excellence, digital transformation, integrated solutions, and sustainability, with efficiency programs stabilizing profitability and improving gross margin.

• Efficiency program delivered EUR 16 million in cost savings (EUR 10 million net after restructuring costs), with a target of EUR 40–50 million annual savings by 2028/2029.

Financial highlights

• Group revenue: EUR 1,040.4 million (down 5.2% year-over-year).

• Adjusted EBIT: EUR 42.4 million (margin 4.1%), down from EUR 46.9 million.

• Net profit: EUR 1.0 million, down from EUR 15.5 million.

• Free cash flow: EUR 16.2 million, down from EUR 90.6 million last year.

• Adjusted gross profit margin improved to 37.3% from 36.5% year-over-year.

Outlook and guidance

• Adjusted EBIT margin guidance for 2026/27: 3%–5%, with revenues expected to remain at prior year level.

• Market recovery anticipated from 2027, with new build outpacing renovation; renovation remains resilient due to regulatory requirements.

• Planned CapEx for the year: approximately EUR 50 million.