Q3 2025 Carel Industries SpA Earnings Call Transcript
Key Points
- Carel Industries SpA (FRA:CIG) reported a strong Q3 with organic revenue growth of 14%, exceeding expectations.
- The EBITDA margin reached its highest level in the past seven quarters, indicating improved profitability.
- The company achieved significant cash generation, reducing net debt to approximately EUR14.8 million from EUR50.2 million at the end of 2024.
- The HVAC sector was a primary growth driver with over 14% organic growth in Q3, supported by strong performances in data centers, commercial, and residential markets.
- Carel Industries SpA (FRA:CIG) maintained a solid working capital management, resulting in a cash positive position when excluding IFRS 16 impacts.
- The company faced a negative foreign exchange impact of EUR3.7 million in Q3, primarily due to the weak US dollar.
- Despite strong performance, the company expressed caution regarding Q4 due to potential volatility in December and strong comparables from the previous year.
- CapEx spending was lower than the previous year, with Q3 spending at just EUR2 million, raising questions about future investment levels.
- The South Asia Pacific region continued to suffer from weak macroeconomic conditions, impacting overall growth.
- The company anticipates a seasonal decline in profitability for Q4, reverting to historical trends with higher operational costs.
Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the Carel 2025 first nine months results conference call. (Operator Instructions)
At this time, I would like to turn the conference over to Mr. Francesco Nalini, CEO of Carel Industries. Please go ahead, sir.
Thank you. Good afternoon, everybody, and welcome to our call for the presentation of this first nine months 2025 results. I'm starting as usual from page 3 with the most relevant highlights. I'm very happy to report that this has been another very strong quarter. In Q3, organic revenue grew by 14%, slightly above our expectations.
And this, in turn, led to a further improvement in the EBITDA margin. It reached in the period the highest level of the past seven quarters. So coming back to the levels of 2023. Year-to-date, revenue was EUR463.7 million, up 7.1% compared to the first nine months of 2024 or 8.4% organic, that is excluding exchange rates. As such growth was very
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