Carel Industries (CRL) H1 2025 earnings summary

Executive summary

• Q2 2025 organic revenue growth reached 11.3%, with strong performance in APAC, EMEA, and North America; HVAC and data centers were key growth drivers, and profitability improved significantly.

• H1 2025 revenues were €306.2 million, up 5.0% year-over-year (5.7% at constant FX), with adjusted EBITDA up 9.9% to €59.1 million and margin at 19.3%.

• Net profit for H1 2025 was €26.5 million, down 4.8% year-over-year, mainly due to the absence of prior year extraordinary items and FX effects.

• Strong cash generation led to a reduction in net debt to €41.1 million (just above €11 million ex-IFRS 16), enabling €18.6 million in dividend payments.

• The group maintained a solid order portfolio and expects continued revenue growth in Q3, despite ongoing geopolitical uncertainties.

Financial highlights

• Q2 2025 organic revenue growth at constant FX was 11.3%; H1 2025 revenue was €306.2 million (+5.0% year-over-year, +5.7% at constant FX).

• Adjusted EBITDA margin reached 19.3% in H1 2025, up from 18.4% last year; reported EBITDA margin was 28% in Q2.

• Net profit: €26.5 million (H1 2025), down 4.8% year-over-year.

• Net financial debt reduced to €41.1 million from €50.2 million at year-end 2024.

• CapEx for H1 2025 was €8.9 million, down 32% year-over-year; full-year CapEx expected at 5% of sales.

Outlook and guidance

• Q3 2025 organic revenue growth expected in the high single-digit to low double-digit range at constant FX.

• Recovery anticipated in refrigeration in H2; heat pump improvement visible but durability uncertain.

• Profitability trends expected to remain consistent with Q2.

• The company remains confident in navigating uncertainties due to its flexible global production and innovation focus.