Management Report
Significant increase in sales and higher operating result in the first half of the year due to the growing ventilation segment
Zehnder Group significantly increased its sales by 11% (organically +8%1) to EUR 382.8 million (previous year: EUR 344.7 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).
Dear shareholders,
In the first half of 2025, Zehnder Group's sales and operating result in the ventilation segment in Europe and North America increased significantly compared to the previous year. Sales in the ventilation segment grew both organically and through the acquisition of Siber in Spain in July 2024. Increased construction activity in some countries, the expansion of our market share, and a build-up of stock on the customer side had a positive impact on sales development. In contrast, sales in the radiator segment continued to decline.
Signs of recovery in various countries in the ventilation segment became more pronounced during the first half of the year. The positive trend indicates that demand has bottomed out in various countries. Nevertheless, uncertainty remains for the second half of 2025 due in part to the ongoing tariff situation in the USA. At the same time, the geopolitical situation is dampening general investment sentiment.
We want to further strengthen our market position through a focused strategy and targeted investments in innovation and sustainability. We are systematically pursuing our transformation into a leading international supplier of indoor climate systems.
In addition, we are continuing to expand our service and maintenance business with the aim of reducing our dependence on the new building cycle.
1 For more information, see: Alternative performance measures.
Rising sales in the ventilation segment and declining demand in the radiator segment
Zehnder Group's sales increased by 11% to EUR 382.8 million in the first half of 2025 (organically +8%1). Demand in the ventilation segment picked up in almost all key markets. The sales increase was driven by increased construction activity, our market expansion, and a build-up of customer inventories. In contrast, the radiator segment was affected by weaker demand, resulting in a further decline in sales in the first half of 2025.
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%). 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.
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 (Europe, Middle East and Africa), 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).
1 For more information, see: Alternative performance measures.
Operating result benefits from growth in the ventilation segment and cost savings
In the first half of 2025, Zehnder Group achieved an operating result (EBIT) of EUR 32.7 million (+162%) and 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. The increase in ventilation sales, combined with targeted cost management, contributed to the higher operating result.
“The increase in ventilation sales, combined with targeted cost management, contributed to the higher operating result.”
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. At the same time, profitability was increased by optimising operational efficiency.
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.
The tax rate at Group level was 22% in the reporting period (previous year: 44%). Net profit for the first half of 2025 reached EUR 23.5 million (previous year: EUR 7.1 million).
1 For more information, see: Alternative performance measures.
Focus on innovations
At EUR 12.7 million, research and development expenditure in the first half of 2025 was slightly below the previous year's level of EUR 13.0 million. It is our goal to continue on the path to becoming the leading provider of room climate solutions, with a particular focus on indoor climate systems. With the new ComfoConnect PRO, Zehnder offers a central interface for the easy integration of ventilation units into smart home and building automation systems. The device is compatible with many existing Zehnder products.
The recently launched, innovative ComfoClime and ComfoVar products are proving increasingly popular with customers. The growing importance of cooling confirms the strategic expansion of our product range. The Zehnder ComfoClime is an add-on module for existing ventilation systems that provides additional temperature control. It allows for effective heating and cooling of living spaces. The ComfoClime Q is also available as a combination unit for energy-efficient new buildings. The ComfoVar Aero, on the other hand, is a space-saving air volume controller for multi-storey buildings with a centralised ventilation system.
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.
1 For more information, see: Alternative performance measures.
Integration of Siber proceeding according to plan
The integration of the Spanish company Siber, acquired in July 2024, is proceeding according to plan. The first sales of Siber appliances under the Zehnder label (Zehnder EVO) were made in Italy in the first half of 2025. In the next phase, Zehnder plans to launch EVO products in other European countries. Siber has broad market access in Spain and Portugal, where it specialises in complete ventilation systems for new apartment buildings. Zehnder Group’s product portfolio is thus ideally complemented by products in the mid-price range, enabling Zehnder Group to tap into sales potential in other countries in the attractive apartment building segment.
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.
Zehnder Group remains confident in the long-term growth outlook – especially in the ventilation sector. We expect that existing backlog for new buildings and renovations, the stricter building regulations for improved insulation, the rising desire for energy-efficient and resource-saving climate systems, and the increasing awareness of healthy indoor air will all create favourable conditions for further growth. The low market penetration of ventilation solutions in many countries also offers additional potential.
Through our focused strategy, targeted investments in innovations and sustainability, tailwinds from favourable megatrends, and consistent cost control, we aim to further strengthen our market position and achieve our medium-term targets of average annual sales growth of 5% and an EBIT margin of 9–11%.
1 For more information, see: Alternative performance measures.
Thank you to our stakeholders
On behalf of the Board of Directors and the Executive Committee, we would like to express our gratitude and appreciation to our employees for their continued commitment and our customers for their loyalty.
We would also like to thank our suppliers and business partners for their good cooperation.
Finally, we would like to thank you, our valued shareholders, for your continued loyalty and your confidence in our successful future.
Yours sincerely,
Dr Hans-Peter Zehnder
Chairman of the Board of Directors
Matthias Huenerwadel
Chairman of the Group Executive Committee, CEO
The expectations presented in the Management Report are based on assumptions. Should these prove to be inaccurate, the associated results will also change.