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Investing.com -- Shares of Zehnder Group AG (SWX:ZEHN) climbed 8% following the company’s release of its first-half 2025 guidance, which forecasts a revenue increase of 10%-13% year on year (YoY) to €380-390 million.
The optimistic outlook is bolstered by expected improvements in the adjusted EBIT margin, projected to be between 8% and 9%, a notable increase from the 6.6% reported in the first half of 2024.
The Swiss-based heating, cooling, and ventilation technology company attributed the positive guidance to several factors. Zehnder anticipates benefiting from economies of scale and the impact of cost reduction measures that are expected to materialize without significant one-off events.
While radiator sales continue to decline, the company sees growth in its ventilation business, driven by a resurgence in organic growth across Europe and North America. This growth is further supported by contributions from its recent acquisition of Siber.
Jefferies analysts commented on the guidance, stating, "Given the easy 1H comps we think that the strong YoY trajectory has been somewhat anticipated (JEFe +8%) but we appreciate the uptick in growth momentum in line with market indicators suggesting that the trough is passed; underpinning Zehnder’s solid market positioning.
With sales fuelled by both, higher construction activity and inventory build-ups, 2H25 will show whether economic stimulus programmes become effective with the full year guidance to be provided in course of 1H25 results due 25 July."
The full audited results for the first half of 2025 and the guidance for the entire fiscal year 2025 are scheduled to be released on July 25.
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