Half Year 2026 Zehnder Group AG Earnings Call Transcript
Key Points
- Zehnder Group AG (XSWX:ZEHN) achieved a 3% sales growth and a 15% increase in adjusted EBIT, with the adjusted EBIT margin of 9.5% within the mid-term target range.
- Ventilation sales grew 8% organically, driven by strong performance in both Europe and North America, and now represent 69% of total sales.
- The launch and rollout of new products, such as the Zebra portfolio across all European markets, led to a 150% sales increase in that segment.
- North America showed strong growth, with ventilation sales up 18% in local currency, supported by strategic initiatives and the opening of a new academy.
- The company's balance sheet remains healthy, with an improved equity ratio of 56% and a positive net liquidity position of €11.9 million.
- The divisionalization of radiator and ventilation activities is on track, aiming to provide undiluted focus and higher agility for each business.
- Radiator business continues to decline, with a 5% sales drop and a slight loss-making EBIT of €0.1 million, impacted by price pressure and a shift to lower-priced models.
- Operating cash flow was weaker than expected due to strategic inventory buildup, higher trade receivables, and increased bonus and tax payments.
- The UK market underperformed, with delays in construction due to the Building Safety Act and a slower-than-expected recovery.
- China remains a challenge, with double-digit declines in new construction starts impacting business there.
- The company faces ongoing competitive pricing and structural shifts in the radiator market, with no immediate improvement expected.
- Sales guidance for the full year is set at €770-790 million, below the 5% growth target, reflecting market recovery delays.
Welcome, everybody. And I thank everybody that you're dialing in. Take the time to listen to our presentation.
I will do that together with Rene Gaeder, our CFO.
And in the next 30, 40 minutes, we'll give you some more insights about the first half in terms of what happened with the business in the regions, but also in the segments about the financials that we achieved, but also a short outlook for the remainder of the year. And we should have plenty of time afterwards to address any open questions from all the participants.
So, if we look at the first half 2026 at the glance, we saw further sales increase and quite a good improvement of the operational result. And it's clear that this was very much driven by our ventilation sales.
They had a continuous growth, solid growth of roughly 8% organic, and that was in the case both in Europe and North America and also across all subsegments of ventilation.
At the same time, the radiator activity stayed under
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