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Investing.com -- Zehnder shares climbed 4.5% following the company’s latest earnings report, which showed strong performance in its ventilation segment and the introduction of promising 2025 guidance.
The company reported an 8% organic sales increase (11% reported), driven entirely by its ventilation business, which surged 24% on a reported basis and 15% organically. The ventilation segment now accounts for 66% of the group’s total sales, while the radiator division continued to decline, falling 8% on a reported basis and 3% organically.
Earnings before interest and taxes (EBIT) rose to €32.7 million, representing an 8.5% margin. The ventilation segment’s margins returned to mid-teens levels at 13.1%, while the radiator business was nearly break-even at -0.5% excluding adjustments.
Zehnder’s inaugural 2025 guidance projects 7% sales growth with an 8.5% EBIT margin for the fiscal year, exceeding financial services consensus by 1% on sales and 5% on profitability. To meet the midpoint of this guidance, the company would need to achieve 3% sales growth at an 8.5% margin in the second half of the year, which analysts view as achievable given improved momentum and easier comparisons.
Jefferies noted that results "point towards an inflection point in demand momentum across European residential despite some cont. weakness in larger markets[...] however, we think that some of the positive sentiment is already baked in with shares having shown a strong +55% performance YTD."
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