Carel Industries (CRL) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered strong results, with organic revenue up 14% and all regions contributing to growth, surpassing previous guidance.

• Year-to-date revenue reached €463.7M, up 7.1% year-over-year (8.4% organic), with growth distributed across regions and markets.

• HVAC was the main growth driver, with over 14% organic growth in Q3, while Refrigeration rebounded with double-digit organic growth.

• EBITDA margin reached a seven-quarter high, supported by operating leverage, favorable raw material trends, and the Kiona acquisition.

• Robust cash generation reduced net debt to €14.8M from €50.2M at 2024 year-end, positioning the group as net-cash positive excluding IFRS 16 effects.

Financial highlights

• Adjusted EBITDA for nine months rose 15.7% to €91.9M (19.8% of sales), up from €79.4M (18.3%) last year.

• Reported revenue for 9M 2025 was €463.7M, up 7.1% year-over-year (+8.4% organic).

• Net profit increased 6.6% to €42.3M, despite the absence of prior-year extraordinary items and negative FX effects.

• Free cash flow for nine months was €63.35M, up from €17.9M last year.

• CapEx was €14.2M, down from last year’s record €22M.

Outlook and guidance

• Q4 2025 revenues are expected to be broadly in line with Q3, indicating substantial growth over Q4 2024.

• Cautiousness for Q4 due to strong prior-year Q4 and December volatility; no significant trend changes anticipated.

• Guidance assumes no unforeseen negative geopolitical developments.