Geberit (GEBN) Q1 2026 earnings summary

Executive summary

• Net sales grew 3.4% in local currencies to CHF 873 million, despite a 0.7% decline in CHF due to negative currency effects, with balanced volume and price contributions and strong underlying demand.

• EBITDA margin improved to 32.5%, up 100 bps year-over-year, supported by the absence of one-time costs and operational improvements.

• EPS increased by 4.5% in CHF and 9.9% in local currencies, reaching CHF 5.94.

• Operating margins remained stable or improved when adjusted for prior year one-time costs and currency effects.

• Growth was broad-based in Europe (except Nordics), strong in Middle East/Africa, but weak in Americas and Far East Pacific, with China declining and India growing.

Financial highlights

• Net sales in CHF declined by 0.7% due to a negative currency effect of CHF 35 million (-4.0%).

• EBITDA increased by 2.3% in CHF and 7.5% in local currencies, reaching CHF 283 million.

• EBIT margin rose 90 bps to 28.0%; net income margin up 110 bps to 22.4%.

• Net income grew 4.5% in CHF and 9.9% in local currencies, with a margin of 22.4%.

• Free cash flow declined to -CHF 28 million due to timing of tax payments, unfavorable working capital, and higher CAPEX.

Outlook and guidance

• Expect slight growth in European building industry in 2026, with no broad recovery yet; renovation demand (60% of business) expected to grow slightly in Europe.

• Mixed outlook outside Europe: India strong, China weak due to new build sector collapse.

• Extraordinary sales price increases of ~2% effective June and 5% for copper piping in April to offset higher plastics and energy costs.

• Full-year 2026 sales price effect expected at 2%-2.5%.

• No reliable forecast for Gulf region due to ongoing conflict; less than 1% of group sales currently affected.