Q4 2025 Carel Industries SpA Earnings Call Transcript
Key Points
- Carel Industries SpA (FRA:CIG) reported a fourth consecutive quarter of double-digit organic growth, with Q4 2025 achieving a 16.9% increase.
- The company saw strong performance across all regions except South America, with notable growth in North America and EMEA.
- Adjusted EBITDA grew by 19% to EUR126.1 million, reaching 20% of sales, which is at the upper end of their mid-cycle expectation for profitability.
- Carel Industries SpA maintained a strong cash generation with EUR140 million of operating cash flow and almost EUR100 million of free cash flow.
- The company is planning to start a third manufacturing plant in North America by the first half of 2027, indicating confidence in continued growth.
- South America experienced flat organic growth in 2025, negatively impacted by a weak economic environment in Brazil.
- The tax rate increased to 22.6% in 2025 from 20.8% in 2024 due to a different country mix.
- There are emerging tensions in raw material costs, particularly in memory components and metals like aluminum, which could impact future profitability.
- The international expansion of Kiona took longer than expected, resulting in sales growth slightly below initial ambitious plans.
- The geopolitical environment, including the conflict in the Middle East, remains uncertain and could affect future visibility and forecasting.
Good afternoon. This is the chorus call conference operator. Welcome, and thank you for joining the Carel Industries full-year 2025 results conference call. (Operator Instructions)
At this time, I would like to turn the conference over to Mr. Francesco Nalini, CEO of the group. Please go ahead, sir.
Thanks. Good afternoon, and thank you for joining our call for the presentation of the full year 2025 results. I'm starting right away from page 3 of the presentation. And I'm very happy to report that Q4 2025 has been the fourth consecutive quarter with an organic double-digit growth. And it also marked a further acceleration to a quarterly organic growth of 16.9%, exceeding our expectations.
In this last quarter, we had a double-digit growth, both in HVAC and Refrigeration as well as in all regions, apart from South America that discounts a very soft economic environment in Brazil. On a yearly basis, reported revenue has been EUR629 million, up 8.7% on the full year 2024
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