Q2 2026 Rational AG Earnings Call Transcript
Key Points
- Rational AG (RATIY) delivered solid first-half 2026 results with organic revenue growth of 8% and 6% after FX adjustments, exceeding growth rates from 2025 and 2024.
- The company achieved a record EBIT margin of 26.5% in H1 2026, driven by strong operational performance and a one-time tariff refund of EUR14 million.
- The innovative iHexagon product is gaining strong customer traction, as evidenced by a compelling customer testimonial highlighting significant improvements in cooking speed, energy efficiency, and food waste reduction.
- The iVario product line showed robust growth of 14% in H1 2026, with particularly strong performance in North America (24% growth), underscoring its market penetration potential.
- Management confirmed the full-year outlook, expecting mid to high single-digit revenue growth and an EBIT margin at the upper end of the 25%-26% corridor, supported by a healthy order backlog and continued strong demand in key markets like Germany and North America.
- Revenue growth in Q2 2026 slowed to 4% due to pull-forward effects in the US from pre-buying ahead of price increases, which dampened sequential momentum.
- Sales in China declined by 25% year-over-year, primarily due to Yum China's shift to local sourcing, creating a significant headwind in the Asia region.
- The company faces rising input costs, including higher prices for steel, chemicals, and electronic components, which are expected to pressure gross margins in the second half of 2026.
- Tariffs on US exports are expected to total EUR28-29 million for the full year, with a similar impact anticipated in 2027, potentially requiring future price increases to offset.
- Geopolitical tensions, particularly the Middle East conflict, have negatively impacted sales in the region, with a decline of around EUR2 million in H1 2026 and elevated costs.
Good afternoon and welcome to Rational's earnings call for the second quarter of the fiscal year 2026. The results will be presented by the CEO, Dr. Peter Stadelmann, and the CFO, Jorg Walter. Thanks to everyone who submitted their questions in advance. They will be answered after the presentation. (Event Instructions)
Also be aware that this event will be recorded and you will be able to review it later on Research Hub. We're looking forward to an insightful exchange, and I will now hand it over to Dr. Stadelmann.
Good afternoon and thank you for joining us. The first half of 2026 developed in line with our expectations. Despite continued geopolitical and economic uncertainties, we delivered solid growth, maintained strong profitability and confirm our full-year outlook. A proof for our strong market position and innovation leadership is the iHexagon.
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