RATIONAL (RAA) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached EUR 318 million, up 8% year-over-year (11% organic), marking a new Q1 record, driven by strong growth in Americas and Europe, with North America and Germany each up 11%.

• EBIT increased 5% year-over-year to EUR 76 million, with an EBIT margin of 23.9%, slightly below last year.

• Gross margin declined by 155 bps to 57.6% due to FX and U.S. tariffs.

• iVario product group grew 18% year-over-year, outpacing iCombi's 6% growth.

• Asia saw a 3% revenue decline, mainly due to China, offset by growth in Japan, India, and Korea.

Financial highlights

• Gross profit rose 5% to EUR 183.1 million; gross margin declined to 57.6% from 59.2% due to higher COGS.

• Operating expenses increased 5%, mainly in R&D and customer-related functions.

• Equity reached EUR 1 billion for the first time, with an equity ratio of 81% as of March 31, 2026.

• Net profit after taxes was EUR 59.2 million, up 4% year-over-year; EPS rose to EUR 5.21.

• Operating cash flow surged to EUR 27.9 million from EUR 1.7 million in Q1 2025.

Outlook and guidance

• Full-year 2026 forecast confirmed: sales revenue growth expected in the mid- to high-single-digit percentage range and EBIT margin between 25% and 26%.

• Gross margin expected to be slightly lower than last year due to tariffs, FX, and raw material costs, partially offset by tariff refunds.

• Margin progression expected to be second-half weighted, with normal seasonality and stronger Q4.