Geberit reports 2Q25 miss, maintains stable margin outlook

Published 20/08/2025, 07:46
© Reuters.

Investing.com -- Swiss sanitary products manufacturer Geberit (SIX:GEBN) missed second-quarter sales and earnings expectations but maintained a relatively stable outlook for the full year 2025.

The company reported second-quarter organic sales growth of 2.5%, approximately 110 basis points below consensus estimates.

Total (EPA:TTEF) sales missed analyst expectations by about 2%, with two-thirds of the shortfall attributed to weaker organic growth and the remainder to larger-than-expected foreign exchange headwinds.

This performance represents a sequential slowdown from the first quarter’s 5.3% organic growth, which had benefited from customer pre-buying ahead of April price increases.

Geberit’s second-quarter EBITDA also fell short of consensus by approximately 2%. While the company doesn’t explicitly provide adjusted EBITDA figures, analysts estimate the adjusted EBITDA miss was larger at around 4%.

Despite this, the adjusted EBITDA margin appears to have remained broadly flat year-over-year, continuing a trend seen in the first quarter.

The company issued its first quantitative guidance for 2025, projecting 4% organic growth, which aligns exactly with analyst consensus.

Geberit expects an EBITDA margin of "around 29%" compared to the consensus estimate of 29.3%, suggesting potential consensus EBITDA cuts of approximately 1%.

In its outlook, Geberit noted increased geopolitical and macroeconomic uncertainties. The company expects a slight decline in European residential new build markets to continue into the second half of 2025.

However, this is anticipated to be offset by positive trends in European renovation, which accounts for approximately 60% of Geberit’s sales.

Geberit shares are trading at CHF632.40, with Jefferies analysts maintaining a buy rating and a price target of CHF710.00, representing 12% upside potential.

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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