Geberit (GEBN) Q1 2025 earnings summary

Executive summary

• Net sales grew 5.3% year-over-year in local currencies to CHF 878 million, driven by strong volume, new product launches, and pre-price-increase wholesaler demand, with all product areas and regions contributing except Western Europe.

• Operating margins remained stable excluding CHF 14 million one-time costs for the closure of the Basel/German ceramics plant, which impacted reported EBITDA and EBIT margins.

• Earnings per share reached CHF 5.69, down 0.7% year-over-year; excluding one-off costs, EPS would have been CHF 6.05, up 5.6% year-over-year, supported by a share buyback program.

• Free cash flow improved to CHF 23 million from -CHF 29 million, driven by better working capital and tax timing.

• Equity ratio improved to 40.2% from 35.8% at year-end 2024.

Financial highlights

• EBITDA increased 0.7% to CHF 277 million; EBITDA margin at 31.5%, down 130 bps due to one-time costs.

• EBIT was CHF 238 million (-0.7%), margin at 27.1% (down 150 bps year-over-year), fully attributed to plant closure costs.

• Net income was CHF 187 million, down 1.6% year-over-year; net income margin at 21.3%.

• Volume growth in Q1 was approximately 6-7% after adjusting for working days.

• Net debt at CHF 967 million; number of employees at 11,240.

Outlook and guidance

• 2025 outlook unchanged; expect European new build activity to decline slightly in 2024, offset by a positive renovation market, with building construction demand in Europe anticipated to stabilize in 2025.

• Mixed outlook overseas: strong demand in India and Gulf, decline in China.

• Direct material prices expected to remain flat in Q2; further plant closure-related charges expected through 2026.

• Wage inflation guidance for full year is 3-4%.

• Strategic focus on expanding piping business, growing shower toilet segment, advancing growth outside Europe, and optimizing ceramics plants.