Belimo shares climb on 31% profit jump, strong data center demand

Investing.com -- Shares of Belimo Holding AG rose more than 5% Monday after the company reported a 31% increase in first-half net income, driven by broad-based sales growth, improved margins, and strength in the data center segment.

Net income reached 101.3 million Swiss francs for the six months ended June 30, up from CHF 77.2 million a year earlier. 

Earnings before interest and taxes rose to CHF 128.1 million from CHF 93 million, a 15% beat versus consensus. The EBIT margin expanded to 22.8% from 19.6%.

Net sales increased 20.6% in local currencies and 18.6% in Swiss francs to CHF 561.5 million. All regions contributed to growth, with Asia Pacific delivering the largest upside to expectations.

In the Americas, sales climbed 30.1% in local currencies to CHF 280 million, supported by demand in the U.S. and Canada HVAC markets and expansion in the data center sector. Original equipment manufacturer accounts and contracting channels also recorded gains.

Sales in the EMEA region rose 9.9% in local currencies to CHF 216.3 million. Growth was attributed to higher volumes in retrofit projects and smaller contracting jobs, as well as a recovery in OEM activity and an expanded RetroFIT+ offering. Construction activity in Germany began to rebound.

Asia Pacific sales rose 21.3% in local currencies to CHF 65.3 million. The company cited demand for data center solutions, energy efficiency projects, and growth in sensors and meters. 

In China, sales exceeded expectations despite a weak construction environment. A new headquarters in Shanghai received China Three Star Green Building and LEED Platinum certifications. 

In India, strong demand came from district energy, residential high-rises, and semiconductor projects.

By product line, control valve sales totaled CHF 284.1 million, up 23.3% in local currencies. Damper actuators rose 18.1% to CHF 251.8 million, and sensors and meters grew 16.3% to CHF 25.6 million.

Operating cash flow increased to CHF 93.5 million from CHF 85.6 million. Free cash flow, excluding term deposits, declined to CHF 52.8 million from CHF 69.8 million, as capital expenditures rose to CHF 35.9 million from CHF 14.4 million under the company’s expansion plan.

Net liquidity stood at CHF 49.9 million at the end of June. The equity ratio was 71.9%. Full-time headcount rose 10% to 2,512.

Belimo maintained its full-year 2025 guidance for 15% to 20% sales growth in local currencies and an EBIT margin above 20%, based on current exchange rates. It said the outlook is subject to macroeconomic and currency-related risks.

Morgan Stanley (NYSE:MS) reiterated an “equal-weight” rating with a CHF 723 price target, citing the 15% EBIT beat and margin expansion. 

Jefferies maintained a “buy” rating and CHF 890.50 target, noting the 3% EBIT beat and continued data center momentum.