Ariston Holding (ARIS) investor relations material

Executive summary

• Q1 2026 delivered solid performance in a volatile macroeconomic context, with net revenue at €656 million, up 1.2% year-over-year, driven by renewables and heat pumps, especially in Germany, offsetting declines in Asia/Pacific, MEA, and the Americas.

• Adjusted EBITDA increased to €64.7 million (9.9% margin), while adjusted EBIT margin remained resilient at 5.2%, despite higher logistics costs and investments.

• Free cash flow was negative at -€69.1 million, reflecting typical Q1 seasonality, deferred CapEx payments, and working capital effects.

• Strategic initiatives advanced, including the Lennox JV launch in North America and improved ESG ratings, with MSCI upgraded to 'A'.

• FY 2026 guidance confirmed despite Middle East conflict headwinds.

Financial highlights

• Net revenues for Q1 2026 were €656 million, up 1.2% year-over-year on a reported basis, flat organically.

• Adjusted EBIT was €34.1 million (5.2% margin), stable year-on-year; reported EBITA was €28.1 million.

• EBITDA reached €63.9 million (+2.2% year-over-year); adjusted EBITDA margin held at 9.9%.

• Free cash flow was negative €69 million, impacted by seasonality and deferred CapEx.

• Adjusted net debt increased to €631 million at March-end, mainly due to seasonal cash outflow.

Outlook and guidance

• Full-year 2026 guidance confirmed: organic revenue growth of +1% to +4% year-over-year and adjusted EBIT margin between 7% and 8%.

• CapEx to remain between 5% and 5.5% of revenue, with cash generation concentrated in Q4.

• Positive start to Q2; actions underway to mitigate Middle East headwinds.

• Continued investments planned in go-to-market, digitalization, R&D, and new products.

• Riello acquisition expected to close by end of H1 2026.