Geberit (GEBN) H1 2025 earnings summary

Executive summary

• Net sales grew by 1.7% in CHF and 3.9%–4% in local currencies in H1 2025, with growth volume-driven and all product areas contributing despite challenging market conditions and negative currency effects.

• Operating margins remained stable excluding one-time Wesel ceramics plant closure costs; EBITDA margin was 30.9%, down 70 bps due to these costs.

• Adjusted EPS grew 6% (CHF 11.18), while reported EPS was CHF 10.28; share buyback program supported EPS growth.

• Free cash flow increased 13.9%–14% year-over-year, benefiting from tax and CapEx timing.

• Growth was volume-driven, with negligible price effect due to offsetting factors and timing of price increases.

Financial highlights

• H1 2025 net sales: CHF 1,665 million (+1.7% CHF, +3.9% c.a.); EBITDA: CHF 514 million (-0.7% CHF, +2.1% c.a.); EBIT: CHF 433 million (-2.5% CHF, +0.5% c.a.); Net income: CHF 339 million (-3.3% CHF, +1.3% c.a.).

• EBITDA margin was 30.9% (reported), 31.5% (adjusted for one-time costs); net income margin was 20.3%.

• CapEx decreased by 12% to CHF 55 million; free cash flow rose to CHF 247 million.

• Wage inflation was 5.8% in Q2, with full-year expected at 3–4%; energy costs up 21% in H1.

• Net debt was CHF 1,167 million, down CHF 173 million year-over-year; equity ratio at 34.5%.

Outlook and guidance

• Full-year 2025 net sales growth in local currencies expected at around 4%, with EBITDA margin guidance of around 29%, including EUR 16–18 million in site closure costs.

• European building construction demand expected to stabilize, with renovation segment offsetting new build decline.

• Mixed outlook outside Europe: strong demand in India and Gulf, continued weakness in China.

• July net sales were above previous year and in line with full-year guidance.

• US tariffs not material due to local manufacturing.