Zehnder Group (ZEHN) H2 2025 earnings summary

Executive summary

• Achieved record ventilation sales exceeding €500 million, representing 66% of total sales, driven by market share gains, successful integration of acquisitions like Siber and Airia, and expanded service offerings.

• Group sales rose 8% year-over-year to €760.7 million, supported by strong ventilation growth and strategic acquisitions.

• Service business and air-based climate solutions saw substantial growth, with service becoming a key pillar and climate solutions achieving double-digit turnover and 80% volume growth.

• Ongoing cost-saving initiatives and capacity reductions in the radiator segment amid continued market pressure, including plant closures and operational adjustments.

• Transformation into a system provider for ventilation and indoor climate solutions continued.

Financial highlights

• Total sales increased by 8% to €760.7 million, with organic growth at 7%.

• Adjusted EBIT margin improved to 8.6% (€65.2 million), up 30% year-over-year, despite €1.8 million in one-off costs related to radiator production adjustments.

• Net profit reached €47.8 million, reversing a prior-year loss.

• Operating cash flow rose 32% to €80 million, enabling full repayment of the €60 million syndicated loan used for the Siber acquisition.

• Adjusted EBITDA increased 16% to an 11.7% margin; ROCE improved to 22.1%.

Outlook and guidance

• Market outlook for 2026 is cautiously optimistic, with signs of stabilization and modest growth in key European markets, though Germany is still expected to decline by 10%.

• No full-year guidance provided; management will update outlook mid-year when visibility improves.

• Strategic focus remains on expanding in North America, increasing European penetration, and growing the service business.

• Midterm targets of 5% sales growth and 20%+ ROCE are considered achievable if market conditions stabilize; EBIT margin target of 9-11% confirmed.

• Slightly positive sales impact anticipated in 2026, with continued demand for energy-efficient indoor climate solutions.