Zehnder Group (ZEHN) H1 2025 earnings summary

Executive summary

• Ventilation segment drove strong growth, now representing 66% of total sales, with a 24% year-over-year increase and successful integration of Siber expanding market reach and product portfolio.

• Radiator business continued to decline, with an 8% sales drop and margin pressure due to weak renovation demand, competition from lower-priced models, and low factory utilization.

• Strategic focus remains on transforming from a component manufacturer to an HVAC system solution provider, supported by investments in product innovation and market coverage.

• Integration of Siber is ahead of plan, with first sales outside Spain and closure of the Swiss radiator facility, consolidating production in France.

• New product launches and expansion in affordable and passive house projects in the UK support market position.

Financial highlights

• Group sales rose 11% year-over-year to €382.8 million in the first half, with organic growth at 8%.

• Adjusted EBIT increased 45% to €32.7 million, with EBIT margin improving to 8.5% from 6.6%.

• Net profit more than doubled to €23.5 million, with net margin at 8.5% and no one-off effects in H1 2025.

• Operating cash flow rose 60% to €22.9 million.

• Equity ratio decreased to 51% from 68%, mainly due to the Siber acquisition.

Outlook and guidance

• Full-year 2025 sales expected between €740–770 million, with adjusted EBIT margin to remain at first-half levels.

• Medium-term targets: average annual sales growth of 5%, EBIT margin of 9–11%, and ROCE above 20%.

• Cost savings from radiator production site closure and production consolidation expected to benefit H2 2025 margins.

• Recovery in Europe is expected to continue, with mixed trends in North America and ongoing weakness in China; Germany's recovery likely delayed until late 2026.

• Cautious outlook for construction activity in Germany and the US due to economic and tariff uncertainties.