Ad hoc announcement pursuant to Art. 53 LR
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Arbonia AG / Key word(s): Half Year Results
Arbonia commenced financial year 2025 on a strong footing. Despite challenging market conditions, the company maintained its market position in the first half of the year thanks to a very successful first quarter, robust order intake and operational improvements. Notably, Arbonia expects its operating performance to continue improving despite a challenging market environment: in the first half of 2025, it was able to increase its operating result by 27% compared to the second half of 2024. Although one-off effects such as the power outage at Dimoldura in Spain, increased marketing costs relating to Arbonia's first in-house congress, ArboniaNext, and structural adjustments in connection with the sale of the Climate division negatively impacted the overall result, the Wood Solutions business reported a double-digit EBITDA margin. The Glass Solutions business encountered significant challenges stemming from market conditions and its product portfolio, and as a result, recorded below-average margins.
The aforementioned cost factors will cease to apply in the second half of 2025. Combined with revenue growth, increased earnings from newly won projects, the full impact of recent price increases and a higher number of working days, this is expected to lead to a significantly stronger second half of 2025. In particular, the project business and the cost-saving measures implemented give reason for optimism for the remainder of the year.
Arbonia started financial year 2025 with a very encouraging first quarter. Despite a persistently challenging market environment characterised by weak new construction activity in Germany, sustained high mortgage interest rates and a subdued investment climate, Arbonia posted strong performance in both sales and EBITDA in the first quarter. Order intake remained positive throughout all months. The Glass Doors business experienced a slowdown from April to June, which negatively impacted earnings. Driven by this development, Arbonia increased sales by 14.7% to CHF 307.2 million (previous year: CHF 267.8 million), despite a 1.5% decline in organic growth. EBITDA excluding one-time effects rose 23.3% to CHF 26.1 million in the first half of 2025 compared with the same period of the previous year (previous year: CHF 21.1 million). At 8.5%, the adjusted EBITDA margin was up on the previous year's level of 7.9%. EBITDA including one-time effects totalled CHF 27.9 million, down on the previous year's figure of CHF 47.4 million. This was due to the CHF 28.8 million gain from the sale of the Zelgstrasse site in Arbon recorded in the same period of the previous year. The positive one-time effect in the first half of 2025 amounts to CHF 1.8 million net, comprising the sale of a non-operational property in Tubbergen (NL) and negative structural adjustment costs. EBIT excluding one-time effects was slightly negative at CHF -0.7 million, whereas EBIT including one-time effects was slightly positive at CHF 1.1 million. The group result amounts to CHF 152.6 million (previous year CHF 41.0 million).
Cash Flow and Net debt
Net debt as of 30 June 2025 was CHF 132 million compared to CHF 357 million per 31 December 2024. The decrease of CHF 225 million is primarily attributable to the sale of the Climate division, which reduced net debt by a total of CHF 686 million. The proceeds from the sale were used to pay a dividend, distribution, and par value repayment in the amount of CHF 404 million to the shareholders, with the corresponding effect on net debt. As a result of these transactions, the equity ratio increased from 55.7% per 31 December 2024 to 68.6% per 30 June 2025.
Non-operating assets
The sale of a radiator factory in Tubbergen (NL) that is no longer in operation to a real estate investor was successfully completed in the first half of 2025. The selling price was CHF 6.3 million and led to a book gain of CHF 2.9 million. The sales process for the Russian radiator factory remains difficult due to the challenging political environment and sanctions. Arbonia continues its efforts, closely monitoring developments and examining alternative options.
Business Update
Market Update
Outlook
The company continues to stand by its 2029 medium-term guidance : Arbonia continues to expand its market share while achieving margins above the market average. Despite the challenging macroeconomic environment, especially in Germany, Arbonia benefits from its highly automated plants, enabling cost-efficient production of high-quality doors. Through M&A activities, the company has expanded its geographical footprint to Spain, France, Portugal, and the Czech Republic, thereby reducing its reliance on the German market The target for 2029 is net sales of between CHF 820 million and CHF 850 million, with an EBITDA margin of 14–15%. Depreciation and amortisation (excluding PPA) are expected to rise to 6.0–6.5% of net sales, which is anticipated to have a favourable impact on the tax burden and therefore also on Cash Flow. The already low Net Working Capital will increase only slightly in proportion to sales. Capital expenditure (Capex) is to be normalized to below 4%. Higher EBITDA, lower Capex, and reduced taxes owing to increased depreciation and amortisation are driving growth in Free Cash Flow, supporting a dividend policy of more than 30% of net income and up to 50% of Free Cash Flow.
Contact
End of Inside Information |
| Language: | English |
| Company: | Arbonia AG |
| Amriswilerstrasse 50 | |
| 9320 Arbon | |
| Switzerland | |
| Phone: | +41 71 447 41 41 |
| E-mail: | holding@arbonia.com |
| Internet: | www.arbonia.com |
| ISIN: | CH0110240600 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 2188402 |
| End of Announcement | EQS News Service |
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2188402 26-Aug-2025 CET/CEST