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Investing.com -- Rational (LON:0FRJ) AG on Thursday reported strong fourth-quarter earnings that surpassed analyst expectations.
The German kitchen appliance maker announced a 2% beat on Q4 revenue and an 8% beat on Q4 EBIT, with an operating margin of 27.5%, the highest since the fourth quarter of 2019.
The positive earnings report was driven by a combination of stable cost levels, sales revenue growth, and improved gross margins, particularly from procurement efficiencies.
Rational’s regional performance showed notable growth, with revenue increases of 7% YoY in Europe (excluding Germany), North America, and a significant 17% YoY in Latin America. However, sales in Asia were reported to be "down somewhat," with Germany posting a more modest increase of 2% YoY.
"These are strong results. Rational indicates that with 7% growth in North America it countered a flat market, implying market share gains. Momentum elsewhere is solid and the slight drop in Asia (likely driven by China and tough comps) is not surprising," according to RBC analysts.
"The profitability is the biggest positive today. The Q4 margin is 160bps above market expectations and at a multi-year high, although one has to say that management guided the market down in November: the implied Q4 EBIT margin discussed in November (based on EUR305m FY EBIT and MSD revenue growth guidance) is below 25%," the analysts said in a note.
While Rational did not provide detailed guidance today, the full results and the FY2025 guidance are expected to be published on March 27. Investors appear to be responding positively to the preliminary figures, reflecting confidence in the company’s performance and outlook for the coming year.
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