Zehnder Group continues transformation into innovative system provider of ventilation and indoor climate solutions

• Group sales increased by 8% to EUR 760.7 million; driven by ventilation sales, which was up 18% to EUR 501.7 million
• Operating result (EBIT) amounted to EUR 63.4 million (+348%), corresponding to an EBIT margin of 8.3% and a net profit of EUR 47.8 million
• Adjusted EBIT¹ before one-off effects equalled EUR 65.2 million (+30% compared to previous year), corresponding to an EBIT margin of 8.6%
• Cash flow from operating activities could be increased to EUR 80.0 million (+32%)
• Proposal of a dividend of CHF 1.40 per registered share A (previous year: CHF 1.00)
• Confirmation of medium-term targets of average annual sales growth of 5% and an EBIT margin of 9–11%

ränichen (CH), 26 February 2026: Zehnder Group (SIX: ZEHN), a leading international provider of complete solutions for a comfortable, energy-efficient and healthy indoor climate, reached sales of EUR 760.7 million (previous year: EUR 705.8 million) in the 2025 financial year, and therefore 8% (organically +7%¹) more than in the previous year. The Siber acquisition in Spain in July 2024 supported total sales growth by 3%, while currency effects had a negative impact of –1% and the divestment of the Climate Ceiling Solutions business also reduced sales growth by 1%. Demand in the ventilation segment grew across all key countries, partly due to catch-up effects. The increase in sales is attributable to new building regulations and market share gains. By contrast, demand and sales in the radiator segment continued to decline.

Improved operating result despite diverging segment trends

In the 2025 financial year, Zehnder Group achieved an operating result (EBIT) of EUR 63.4 million and an EBIT margin of 8.3%. This represents an increase of 348% compared with the previous year’s EBIT of EUR 14.1 million. In the 2024 financial year, one-off effects amounted to EUR 35.9 million in connection with targeted portfolio adjustments, production relocations, value adjustments in China, and restructuring measures.

The Group recorded a net profit of EUR 47.8 million in the 2025 financial year (previous year: net loss of EUR –2.4 million). Cash flow from operating activities increased by 32% to EUR 80.0 million in the 2025 financial year (previous year: EUR 60.6 million) compared with the previous year.

Adjusted EBIT¹ increased by 30% to EUR 65.2 million (previous year: EUR 50.1 million), corresponding to an adjusted EBIT margin¹ of 8.6% (previous year: 7.1%). One-off effects of EUR 1.8 million resulted from further selective adjustments to production and distribution in the European radiator segment.

Sales growth driven by stronger ventilation segment

Total sales in the ventilation segment increased significantly by 18% (organically +15%) to EUR 501.7 million in 2025. The acquisition of Siber in Spain in July 2024 supported ventilation sales by around 5%. In the second half of the year, ventilation sales grew organically by 14%. Currency effects were approximately –1%. All three divisions – indoor ventilation, heat exchangers, and industrial air cleaning solutions – contributed positively to sales growth. The ventilation segment accounted for 66% of total sales of Zehnder Group in the reporting year (previous year: 60%).

Ventilation sales in the EMEA region (Europe, Middle East, and Africa) increased by 23% (organically +16%) to EUR 403.3 million (previous year: EUR 328.4 million). Most countries in this region recorded sales growth, with particularly strong increases in the United Kingdom, the Netherlands, and Poland. The introduction of new building regulations in the United Kingdom boosted demand for indoor ventilation, benefiting the replacement business for existing buildings.

Sales in the ventilation segment in North America rose by 7% to EUR 76.1 million (previous year: EUR 71.1 million), with market share gains, particularly in Canada.

In the Asia-Pacific region, ventilation sales fell by 10% to EUR 22.3 million (previous year: EUR 24.7 million), as weak real estate market development and a high number of vacant apartments in China continued to dampen demand in this region.

Increased operating result in the ventilation segment

In the ventilation segment, EBIT rose by 68% to EUR 62.8 million in the 2025 financial year (previous year: EUR 37.4 million). The EBIT margin was 12.5%. In the previous year, comparable adjusted EBIT¹ amounted to EUR 44.4 million and corresponded to an adjusted EBIT margin¹ of 10.5%. There were no one-off effects in the reporting year. Targeted investments continued to be made to expand market coverage and drive product innovation. At the same time, profitability was boosted by higher volumes.

Reduced renovation activity weighs on radiator sales

The radiator segment achieved sales of EUR 259.0 million in the 2025 financial year, down 8% (organically
–5%) on the previous year’s sales of EUR 281.6 million. Radiator sales accounted for 34% of Zehnder Group’s total sales (previous year: 40%).

In the EMEA region, sales in the radiator segment fell by 8% to EUR 216.4 million (previous year: EUR 235.9 million). The downtrend from the previous year continued in 2025, with Germany and France the most affected. This was mainly due to reduced renovation activity and a shift towards lower-priced radiator models amid economic uncertainty.

Radiator sales in North America remained stable at EUR 38.0 million (previous year: EUR 38.5 million), supported by steady demand for high-quality decorative radiators and electric bathroom radiators.

Sales in the Asia-Pacific region fell by 38% to EUR 4.5 million (previous year: EUR 7.2 million), primarily due to the ongoing weakness in the construction sector in China.

A challenging market leads to lower capacity utilisation in the radiator segment

In the radiator segment, EBIT increased to EUR 0.6 million during the reporting period (previous year: EUR 
–23.2 million). The EBIT margin was 0.2% (previous year: –8.2%). Adjusted EBIT¹ fell to EUR 2.4 million in the 2025 financial year (previous year: EUR 5.7 million). One-off effects of EUR 1.8 million resulted from further selective adjustments to production and distribution in the radiator segment. At the site in Lahr (Germany), for example, operation was switched from a two-shift to a single-shift system.

Reluctance to renovate coupled with the trend towards lower-cost radiators led to price pressure and an unfavourable product mix. This again resulted in a lower production capacity utilisation, particularly at the plant in Germany. Thanks to the cost-saving and efficiency measures implemented, operating EBIT remained at least slightly positive.

Dividend for the 2025 reporting year and new election to the Board of Directors

At the Annual General Meeting on 19 March 2026, the Board of Directors will propose the distribution of a dividend of CHF 1.40 (previous year: CHF 1.00) per registered share A, taking into account the results of the 2025 financial year.

Dr Urs Buchmann will not be standing for re-election to the Board of Directors of Zehnder Group AG. The Board of Directors proposes the election of Dr Mara Zehnder as part of the medium-term planned generational transition within the Zehnder family of shareholders. All other members of the Board of Directors will stand for re-election.

Outlook for the 2026 financial year

A slightly positive overall trend in construction activity is expected for 2026. Demand for energy-efficient indoor climate solutions is set to further grow, although it may be adversely affected by macroeconomic developments and the progression of regional conflicts and geopolitical tensions. Zehnder Group will communicate its full-year outlook when it publishes its half-year figures for 2026.

Zehnder Group is well positioned to benefit above average from the trends outlined. Building on our transformation from a radiator manufacturer into a leading international provider of indoor climate solutions, the opportunities that arise should be consistently seized and sustainable growth achieved in key markets.

The expansion of the range of services for renovation and multi-family home projects, the clean air solutions business and the increasing importance of the service business will provide additional growth momentum. On that basis, the medium-term targets are confirmed: average annual sales growth of around 5% and an EBIT margin before one-off effects of 9–11%.

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 Integrated Annual Report 2025, available under the link below.

The complete Integrated Annual Report 2025 in English as well as the Management Report for the 2025 financial year in German are available on our website at:
www.zehndergroup.com/en/investor-relations/reports-presentations

Annex: Five-year overview 2021-2025

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 2025 financial year, the Zehnder Group had about 3600 employees and achieved sales of EUR 761 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.