Zehnder Group with sales growth and improved profitability in the first half of 2026

• Group sales rose by 3% to EUR 394.9 million in the first half of 2026
• Sales in the ventilation segment increased by 7% (organically +8%¹) to EUR 272.1 million and rose to 69% (previous year: 66%) of total sales
• Operating result (EBIT) was EUR 32.2 million (–1%)
• Adjusted EBIT¹ increased to EUR 37.7 million (+15%), with 9.5% the adjusted EBIT margin¹ reached the lower end of the medium-term target range
• One-off effects for the introduction of a divisional organisation in Europe in HY1 2026 totaled EUR 5.5 million
• Net profit grew by 2% to EUR 23.9 million
• Cash flow from operating activities stood at EUR 5.1 million (previous year: EUR 22.9 million)
• Guidance for the 2026 financial year: sales of between EUR 770 and EUR 790 million and an adjusted EBIT margin¹ approximately on the level of the first six months

Gränichen (CH), 30 July 2026: The Zehnder Group (SIX: ZEHN), a leading international provider of complete solutions for a comfortable, energy-efficient, and healthy indoor climate, reported a 3% (organically +4%¹) higher sales of EUR 394.9 million in the first half of 2026. The ventilation segment made a significant contribution to this sales growth. The Group achieved an operating result (EBIT) of EUR 32.2 million (–1%), corresponding to an EBIT margin of 8.2%. The adjusted EBIT¹ increased to EUR 37.7 million (previous year: EUR 32.7 million) and a margin of 9.5% (previous year: 8.5%). One-off costs arose in connection with the introduction of a divisional organisation in Europe and amounted to EUR 5.5 million. Net profit for the first half of 2026 increased by 2% to EUR 23.9 million (previous year: EUR 23.5 million).

Positive sales momentum in the ventilation business

The ventilation segment achieved a 7% increase in sales (organically +8%) to EUR 272.1 million in the first half of 2026 (previous year: EUR 254.1 million). This segment now accounts for 69% of total sales (previous year: 66%). The positive sales development encompassed all areas of the ventilation segment, from residential ventilation and Clean Air Solutions to heat exchangers.

In the EMEA region (Europe, Middle East, and Africa), the ventilation segment generated sales of EUR 220.5 million, representing an increase of 7% compared with the same period of the previous year (previous year: EUR 205.7 million; organically +7%). Performance varied across individual countries. In the growth markets of the Netherlands, Spain, and the Czech Republic, Zehnder achieved organic sales growth. Business in Germany also developed positively despite the continued decline in new construction activity. By contrast, sales in the United Kingdom were below the previous year’s level, reflecting a slowdown in new construction activity caused by temporary delays in planning approval processes.

Sales in the ventilation segment in the North America region rose by 12% to EUR 42.1 million (previous year: EUR 37.5 million; organically +18%). The strong growth achieved in the USA and Canada was driven by gains in market share, the targeted expansion of the sales network, and the consistent execution of our growth strategy.

Sales in the Asia-Pacific region decreased by 13% to EUR 9.5 million (previous year: EUR 10.9 million). New construction activity in China remained weak in the first half of 2026. This is primarily due to a high level of vacant apartments and continued subdued demand for home ownership.

Improved earnings in the ventilation business

In the ventilation segment, adjusted EBIT¹ grew by 13% to EUR 37.8 million in the first half of 2026 (previous year: EUR 33.3 million), resulting in an adjusted EBIT margin¹ of 13.9% (previous year: 13.1%). One-off costs in connection with the introduction of a divisional organisation in Europe amounted to EUR 3.8 million. EBIT stood at EUR 34.0 million (previous year: EUR 33.3 million), resulting in an EBIT margin of 12.5% (previous year: 13.1%). The higher sales and sales volume were the main driver of the margin improvement.

Stabilisation of radiator volumes in Europe

The radiator segment recorded sales of EUR 122.7 million in the first half of the year (previous year: EUR 128.7 million), representing a decline of 5% (organically –3%).

In the EMEA region (Europe, Middle East, and Africa), sales in the radiator segment amounted to EUR 104.5 million, remaining broadly in line with the previous year (previous year: EUR 105.8 million). Performance varied across markets. France, the United Kingdom, and Italy recorded declines in sales, primarily due to general uncertainty and competition from lower-priced radiator models. By contrast, Germany, the Netherlands, and Switzerland achieved sales growth.

In the North America region, total sales in the radiator segment amounted to EUR 17.1 million, a decrease of 17% (previous year: EUR 20.7 million, organically –10%).

The Asia-Pacific region once again recorded a demand-driven decline in sales in the first half of 2026 to EUR 1.1 million (previous year: EUR 2.2 million).

Optimisation measures for radiators are taking effect, but profitability remains under pressure

In the radiator segment, adjusted EBIT¹ amounted to EUR –0.1 million in the first half of 2026 (previous year: EUR –0.7 million), corresponding to an adjusted EBIT margin¹ of –0.1%. EBIT was EUR –1.8 million (previous year: EUR –0.7 million), resulting in a margin of –1.4%. One-off costs in connection with the introduction of a divisional organisation in Europe amounted to EUR 1.6 million. Profitability in the radiator segment continued to be affected by persistent price pressure and a shift toward lower-priced models. The optimisation and cost-reduction measures implemented are beginning to show positive results, but did not yet achieve their full effect during the reporting period.

Lower cash flow from operating activities and increased net liquidity

Cash flow from operating activities decreased to EUR 5.1 million in the first half of 2026 (previous year: EUR 22.9 million). The decline was primarily driven by a strategic build-up of inventory to ensure uninterrupted delivery capabilities amidst ongoing supply chain volatility and higher accounts receivables from customers due to sales growth in ventilation. In the first half of 2026, Zehnder Group invested EUR 9.4 million in property, plant and equipment (previous year: EUR 7.5 million).

Dividends totalling EUR 16.9 million were paid out in the first half of 2026 (previous year: EUR 11.8 million). Net liquidity as at the end of June 2026 amounted to EUR 11.9 million (previous year: net debt of EUR 12.6 million). Equity totalled EUR 276.0 million (previous year: EUR 244.5 million), corresponding to an equity ratio of 56% (previous year: 51%).

Outlook for full-year 2026

The number of residential building permits issued across Europe increased overall during the first half of the year. However, actual construction activity continues to lag behind and remains at a relatively low level. In particular, higher construction costs and interest rates resulting from global macroeconomic uncertainty and geopolitical tensions, continue to weigh on construction activity. This volatile economic environment coupled with ongoing political uncertainties – particularly in the Middle East – may lead to further cost-related pressures.

We expect the renovation markets to stabilise over the remainder of 2026, accompanied by a continued gradual recovery in new buildings. Market dynamics are likely to vary by region, with modest overall growth but no broad-based market recovery yet. Energy efficiency, increasingly stringent building regulations, and healthy living environments remain the strongest structural drivers in the industry.

For the 2026 financial year as a whole, Zehnder Group therefore expects sales of between EUR 770 million and EUR 790 million and an adjusted EBIT margin¹ approximately at the level of the first six months. As a result of the introduction of a divisional organisation in Europe, one-off costs in the range of approximately EUR 10 million are expected in the 2026 fiscal year.

The expansion of our offering for renovation and apartment building projects, the Clean Air Solutions business, and the growing importance of the service business are expected to provide additional growth momentum. On this basis, the Group confirms its medium-term targets of average annual sales growth of around 5% and an adjusted EBIT margin¹ of between 9 and 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 Six-month Report 2026, available under the link below.

The complete Six-month Report 2026 in English as well as the Six-month Management Report 2026 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 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, ISIN code: CH0276534614). 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.