Belimo upgrades guidance after strong first quarter, shares up 7%

Published 24/04/2025, 09:20
Belimo upgrades guidance after strong first quarter, shares up 7%

Investing.com -- Swiss actuator manufacturer Belimo has reported a strong first quarter, leading the company to upgrade its guidance for the remainder of the year.

The new guidance predicts a 6% increase in sales and a 12% increase in EBIT over previous mid-point estimates. Following this announcement, Belimo’s shares rose 7%.

The management now forecasts a year-over-year sales growth of 15-20%, a significant increase from their prior estimate of slightly above 10%. This translates to a mid-point estimate of CHF1,056m, a 5% increase compared to consensus estimates.

In terms of EBIT margin, the company expects it to surpass 20%, leading to a mid-point of CHF222m, a 7% increase compared to the consensus estimate of CHF207m.

To counteract potential tariff impacts, Belimo plans to implement extraordinary price increases. Based on past performance, the company expects these increases to be achievable.

The company’s performance exceeded management’s expectations in all regions. In the United States, growth was particularly strong in the Data Centre verticals.

This growth is expected to continue due to ongoing demand for liquid cooling applications, driven by the adoption of high-performance chips such as Blackwell.

Despite a challenging environment for new builds in the European Union, Belimo reported higher sales in the first quarter. This was largely due to retrofit projects offsetting weakness in original equipment manufacturer (OEM) sales.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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