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Investing.com -- Belimo Holding AG’s (SIX:BEAN) shares fell over 5% on Monday after the company’s EBIT margin guidance for 2025 fell slightly below market expectations.
For 2025, Belimo forecasted revenue growth exceeding its historical average of 9.6% annually. However, the company projects an EBIT margin in the range of 18–20%, compared to consensus estimates of 19.4%.
The Swiss HVAC solutions provider recorded net sales of CHF 943.9 million, reflecting a 13.1% increase in local currencies and 9.9% in Swiss francs. EBIT rose to CHF 181.1 million, representing a 19% year-on-year increase and exceeding consensus estimates by 3%.
The EBIT margin improved to 19.2%, up from 17.8% in the previous year, reflecting operational efficiencies and pricing measures.
Regional performance in 2024 was led by the Americas, where sales increased by 19.8% in local currencies, making it the company’s largest market.
Growth was driven by strong demand for high-performance HVAC applications, including next-generation data center cooling solutions.
The EMEA region recorded a 5.9% increase, supported by renovation activity that helped offset continued weakness in new construction, particularly in Germany.
The Asia Pacific region posted a 14.6% revenue increase, driven by growth in India and China despite broader challenges in the construction sector.
Across product categories, Control Valves generated CHF 468 million in sales, up 15% in local currencies. Sensors and Meters recorded the highest growth at 25%, reaching CHF 44 million, while Damper Actuators contributed CHF 432 million, reflecting a 10% increase.
Second-half performance was particularly strong, with revenue reaching CHF 470.3 million, a 15% year-on-year increase, or 17% in local currencies. EBIT for the period rose 30% to CHF 88.1 million, exceeding consensus expectations by 6%, with a margin of 18.7%.
The Board of Directors has proposed a dividend increase to CHF 9.50 per share, up from CHF 8.50 in 2023, representing a 12% increase and bringing the payout ratio to 80% after two years of stable dividend distributions.
The Swiss company anticipates continued expansion in the Americas, including a new Connecticut headquarters by 2027 to enhance logistics.
While EMEA faces headwinds from weak commercial construction, retrofit initiatives and data center demand are expected to provide support.
Asia Pacific remains positioned for the highest growth in data center investments, with potential stimulus measures in China contributing to demand in the latter part of the year.