Q2 2025 Carel Industries SpA Earnings Call Transcript
Key Points
- Carel Industries SpA (FRA:CIG) reported a significant acceleration in Q2 2025 with organic revenue growth of 11.3%, driven by strong performance in Asia Pacific and EEA regions.
- The company achieved a robust improvement in profitability with an EBITDA margin of 28% of sales during the period.
- North America showed outstanding growth with over 26% organic growth, continuing its strong performance from Q1 2025.
- The HVAC segment experienced 15% organic growth, particularly in data centers, commercial, and residential sectors, with notable improvement in the heat pump vertical.
- Carel Industries SpA (FRA:CIG) demonstrated strong cash generation, with operating cash flow doubling compared to the first six months of 2024, allowing for dividend distribution and investment while reducing net debt to EUR 41.1 million.
- Net profit for the first six months of 2025 was EUR 26.5 million, down 4.8% from the same period in 2024, impacted by the absence of extraordinary accounting items and negative foreign exchange effects.
- South America experienced negative growth of 5.3% organically in the first six months, primarily due to economic uncertainty in Brazil.
- Refrigeration showed mixed results with a slight decline in Europe due to temporary factors, although recovery is anticipated in the coming quarters.
- The macroeconomic scenario remains uncertain and volatile, affecting visibility and planning for future quarters.
- CapEx was down 32% from the previous year due to project seasonality, with expectations to maintain a target of 5% CapEx on sales by year-end.
Good afternoon. This is the Chorus Call conference operator. Welcome and thank you for joining the Carel 2025 first-half results conference school. (Operator Instructions) At this time, I would like to turn the conference over to Mr. Francesco Nalini, CEO of Carel Group. Please go ahead, sir.
Thank you. Good afternoon and welcome everybody to our call for the presentation of the first-half 2025 results. As usual, I'm starting right away by going to the main highlights on page 3.
I'm very pleased to report that we had a significant acceleration in the second quarter of 2025. Organic revenue growth, net of the foreign exchange impact was 11.3% in the period, so at the high end of the expectation we shared with the Q1 results.
Also, profitability had a robust improvement with reported Ebi margin in the period at 28% of sales.
In the first six months, revenues were EUR306.2 million with an organic growth of 5.7% or 5% at current exchange rates.
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