Zumtobel Group (ZAG) Q3 25/26 earnings summary

Executive summary

• Revenues declined 6.4% year-over-year to EUR 775 million for the first nine months of 2025/26, reflecting weak demand and price pressure across most regions except America & MEA.

• Adjusted EBIT dropped 21.5% to EUR 32.2 million, with margin narrowing to 4.2% from 4.9% year-over-year, mainly due to lower volumes and Components Segment losses.

• Net profit for the period was EUR 9.0 million, down 31.3% year-over-year, with EPS at EUR 0.22.

• Efficiency and cost reduction programs partially offset revenue declines, improving adjusted gross profit margin to 37.3%.

• Strategic focus remains on resilience, sustainability, and capturing renovation opportunities, with ongoing cost optimization and expansion of shared service centers.

Financial highlights

• Group revenue for the first nine months fell from EUR 828 million to EUR 775 million year-over-year.

• Adjusted EBIT decreased to EUR 32.2 million; special effects of EUR -12.7 million led to reported EBIT of EUR 19.5 million.

• Net profit for the first nine months was EUR 9.0 million, with EPS of EUR 0.22.

• Free cash flow dropped to EUR 5.4 million from EUR 15.6 million last year.

• Adjusted gross profit margin improved to 37.3% from 36.8% year-over-year.

Outlook and guidance

• Management expects a single-digit percentage revenue decline for the full year 2025/26.

• Adjusted EBIT margin guidance narrowed to 2.5%–4% (previously 1%–4%).

• CapEx for the year is planned at approximately EUR 50 million.

• Market environment remains challenging with ongoing geopolitical risks, delayed investment decisions, and unpredictable economic factors.

• Recovery in non-residential construction is anticipated to begin in 2026, with renovation and ESG initiatives as key drivers.