Significant increase in sales and higher operating result in the first half of the year due to the growing ventilation segment

• Group sales rose by 11% to EUR 382.8 million in the first half of 2025
• Strong sales increase in the ventilation segment of 24% (organically +15%¹) to EUR 254.1 million; ventilation sales rose to 66% (previous year: 59%) of total sales
• Operating result (EBIT) was EUR 32.7 million (+45%); EBIT margin of 8.5%; no one-off effects in the first half of 2025
• Net profit increased by 229% to EUR 23.5 million
• Cash flow from operating activities grew by 60% to EUR 22.9 million
• Guidance for the 2025 financial year: sales of between EUR 740 and EUR 770 million and an adjusted EBIT margin approximately on the level of the first six months

Gränichen (CH), 25 July 2025: The Zehnder Group (SIX: ZEHN), a leading international provider of complete solutions for a comfortable, energy-efficient and healthy indoor climate, reported an 11% (organically +8%¹) higher sales of EUR 382.8 million in the first half of 2025. This growth was driven primarily by the ventilation segment in Europe and North America. The Group achieved an operating result (EBIT) of EUR 32.7 million (+162%), corresponding to an EBIT margin of 8.5%. This represents a 45% increase compared to the previous year’s adjusted EBIT of EUR 22.6 million (excluding one-off costs of EUR 10.1 million). There were no one-off effects in the first half of 2025. Net profit increased by 229% to EUR 23.5 million (previous year: EUR 7.1 million).

Significantly higher sales in the ventilation segment through organic growth and Siber

The ventilation segment recorded a 24% increase in sales (organically +15%¹) to EUR 254.1 million in the first half of 2025. This segment now accounts for 66% (previous year: 59%) of total sales. All areas of the ventilation segment – industrial air cleaning solutions, indoor ventilation, and heat exchangers – benefited from higher demand.

In the EMEA region (Europe, Middle East and Africa), the ventilation segment generated sales of EUR 205.7 million, representing an increase of 30% (previous year: EUR 157.8 million; organically +17%). Sales grew both organically and through the acquisition of Siber in Spain. Most countries in this region recorded higher sales, with particularly strong growth in Spain, the United Kingdom, the Netherlands, Switzerland, and Italy. In the United Kingdom, stricter legislation and new requirements for indoor ventilation had a positive impact on demand.

Sales in the ventilation segment in the North America region rose by 8% to EUR 37.5 million (previous year: EUR 34.7 million). We were able to increase our market share in Canada, and customers also expanded their inventories due to the tariff situation in the USA.

Sales in the Asia-Pacific region decreased by 8% to EUR 10.9 million (previous year: EUR 11.8 million), with the high vacancy rate of apartments in China once again having a negative impact on demand.

Strong operating result in the ventilation segment

In the ventilation segment, EBIT increased by 55% to EUR 33.3 million in the first half of 2025, resulting in an EBIT margin of 13.1%. The comparable adjusted EBIT for the same period last year was EUR 21.5 million. Targeted investments continued to be made in expanding market coverage and driving product innovation.

Lower sales in the radiator segment

In the first half of 2025, sales in the radiator segment totalled EUR 128.7 million, down 8% (organically –3%¹). This decrease was partly due to the divestment of the Climate Ceiling Solutions division. The relocation of production from Gränichen (CH) to Vaux-Andigny (FR) went according to plan.

In the EMEA region, the radiator segment generated EUR 105.8 million in sales (previous year: EUR 119.4 million). The downward trend from the previous year continued in the first half of 2025. The countries most affected in terms of volume were Germany and the United Kingdom. This was primarily due to the weaker renovation market and a shift towards lower-priced radiator models. Contrary to the overall trend, the Netherlands recorded sales growth.

In the North America region, total sales in the radiator segment reached EUR 20.7 million, representing an increase of 14% (previous year: EUR 18.1 million). The demand there for high-quality decorative radiators and electric bathroom radiators increased due to the growing number of home renovations.

In the Asia-Pacific region, sales declined again in the first half of 2025, falling to EUR 2.2 million as a result of lower demand (previous year: EUR 3.0 million).

Lower production capacity utilisation led to a slightly negative operating result in the radiator segment

In the radiator segment, EBIT fell to EUR –0.7 million in the first half of 2025, corresponding to an EBIT margin of –0.5%. The comparable adjusted EBIT in the previous year’s period stood at EUR 1.1 million. Cautious consumer sentiment and a shift towards lower-priced radiators led to a further decline in volumes, which again resulted in lower production capacity utilisation. The extensive cost-saving measures introduced in 2024 are taking effect.

Increased cash flow from operating activities

In the first half of 2025, cash flow from operating activities increased to EUR 22.9 million (previous year: EUR 14.3 million), driven mainly by the higher operating profit compared to the previous year's period. In the first half of 2025, Zehnder Group invested EUR 7.5 million (previous year: EUR 8.4 million) in property, plant and equipment.

Dividends totalling EUR 11.8 million were also paid out in the first half of 2025. Net debt¹ as at the end of June 2025 amounted to EUR 12.6 million (previous year: net liquidity¹ of EUR 53.0 million). Equity totalled EUR 244.5 million (previous year: EUR 333.2 million), corresponding to an equity ratio of 51% (previous year: 68%). Equity, net liquidity or net debt were strongly affected by the acquisition of Siber in July 2024.

Outlook for full year 2025

In the first half of 2025, residential construction activity in Europe increased compared to the previous year. Most markets have bottomed out. However, the picture varies from country to country. In some countries, households and investors remain to be hesitant about new buildings and renovations due to economic uncertainty. Despite a slight increase in building permits in Germany so far this year, we expect construction activity there to remain low in the second half of 2025. Furthermore, we receive orders and sales with a time-lag. In the mid-term, the economic stimulus package adopted by the German government and the special fund for infrastructure and climate neutrality will provide positive impetus for the construction industry. The direct impact of previous US tariff policy on Zehnder Group was so far minimal in the first half of the year, thanks to our local production sites in Canada and the USA, which allow us to produce locally. Nevertheless, there remains still a high risk that the US government's tariff policy will have a negative impact on general investment sentiment. Overall, there are growing signs of a slowdown in the US housing market in the second half of 2025. We expect the cost savings from the closure of the Gränichen (CH) production site – a measure aimed at adjusting production capacity in the radiator segment – to materialise largely in the second half of 2025.

For the 2025 financial year as a whole, Zehnder Group therefore expects sales of between EUR 740 million and EUR 770 million and an adjusted EBIT margin¹ approximately on the level of the first six months.

¹Alternative Performance Measures (APM) are key figures that are not defined under Swiss GAAP FER. For this reason, comparability with similar figures from other companies may be limited. Zehnder Group uses APMs as performance indicators for internal and external reporting to stakeholders. Further information on the APM can be found in the English Six-month Report 2025, available under the link below.

The complete Six-month Report 2025 in English as well as the Six-month Management Report 2025 in German are available on our website at:

www.zehndergroup.com/en/investor-relations/reports-and-presentations

Next dates to note

Contact

René Grieder
Member of the Group Executive Committee, CFO
Zehnder Group AG, 5722 Gränichen (Switzerland)
T +41 62 855 15 21, rene.grieder@zehndergroup.com

Alexander Kamb
Head of Investor Relations & Communications
Zehnder Group AG, 5722 Gränichen (CH)
T +41 62 855 15 36, alexander.kamb@zehndergroup.com

This media release is published in German and English. The German version is binding. For further information about the Zehnder Group, please visit www.zehndergroup.com.

Company profile

Zehnder Group provides world-leading solutions for a comfortable, energy-efficient and healthy indoor climate. The products and services of the Group include heating, cooling, indoor ventilation and air cleaning. The Group develops and manufactures its products at its own factories in Europe, China, and North America. In the 2024 financial year, the Zehnder Group had about 3500 employees and achieved sales of EUR 706 million. The company is listed on the SIX Swiss Exchange (symbol: ZEHN, number: 27 653 461). The unlisted registered shares B are held by Graneco AG, which is controlled by the Zehnder families.
Cautionary note regarding forward-looking statements

This release may contain certain forward-looking statements relating to Zehnder Group’s future business, development, and economic performance. Such statements may be subject to a number of risks, uncertainties and other important factors, such as but not limited to force majeure, competitive pressures, legislative and regulatory developments, global, macroeconomic and political trends, Zehnder Group’s ability to attract and retain the employees that are necessary to generate revenues and to manage its businesses, fluctuations in currency exchange rates and general financial market conditions, changes in accounting standards or policies, delay or inability in obtaining approvals from authorities, technical developments, litigation or adverse publicity and news coverage, each of which could cause actual development and results to differ materially from the statements made in this release. Zehnder Group assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise.