Italy · Delayed Price · Currency is EUR Ariston Holding Earnings Call Transcripts
Fiscal Year 2025
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2025 saw a return to growth with strong heat pump sales, improved margins, and robust cash flow, despite FX headwinds and a weak European gas boiler market. Strategic investments and acquisitions position the group for continued expansion, with 2026 guidance targeting 1–4% organic revenue growth and higher profitability.
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Q3 delivered strong organic growth and margin improvement, driven by heat pumps in Germany and solid water heating performance. Full-year organic revenue growth guidance was raised to +3%, with continued investment in efficiency, sustainability, and strategic M&A.
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Q2 saw 3.6% organic growth and a 50 bps margin improvement, with strong heat pump sales offsetting boiler declines. Guidance for 2025 organic growth was narrowed to 1%-3%, and a 7%+ adjusted EBIT margin is expected, supported by efficiency programs and new strategic initiatives.
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Q1 2025 saw a return to revenue growth and margin improvement, driven by strong performance in renewables and water heating, with all regions and divisions growing. Guidance for 2025 is confirmed, with organic revenue growth of 0-3% and adjusted EBIT margin above 7%, while macroeconomic and tariff risks are closely monitored.
Fiscal Year 2024
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2024 saw a sharp revenue decline due to weak European heating demand, but strong cash flow and efficiency gains supported financial stability. Guidance for 2025 anticipates modest revenue growth, margin improvement, and increased investment, with risks tied to incentives and tariffs.
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Q3 saw a 13.7% organic revenue decline year-on-year, but margins improved due to efficiency actions. Free cash flow turned positive, and guidance for 2024 is unchanged, with a 12–15% revenue drop and 6% EBIT margin expected. Recovery is anticipated from 2025.
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Q2 and H1 2024 saw a sharp revenue and margin decline due to unprecedented weakness in European heating markets, especially for heat pumps, while Water Heating and Americas showed resilience. Management expects 2024 to be the bottom, with a gradual recovery from 2025 and ongoing cost efficiency actions.