Ariston Holding (ARIS) Q4 2025 earnings summary

Executive summary

• Achieved strong recovery and solid top and bottom-line results in 2025, outperforming the European heating market, especially in Germany, due to rising demand for renewable technologies and heat pumps, with both revenue and profitability growth year-over-year.

• Four consecutive quarters of organic growth, improved margins, and robust cash generation, driven by renewables and heat pumps, offsetting weakness in the EU gas boiler market at historical lows.

• Strategic progress included new plant openings in Serbia, Egypt, Italy, and India, and key acquisitions and partnerships (Riello, Lennox JV, DDR, Z.R.E.), enhancing global presence and product offering.

• ESG ratings improved significantly, with validation of decarbonization targets by the Science Based Targets initiative.

Financial highlights

• FY 2025 net revenues reached €2,707 million, up 2.8% year-over-year, with Q4 revenues at €747 million (+2.8% year-on-year); organic growth was 3.0% for the year.

• Adjusted EBIT for FY 2025 was €193 million (7.1% margin), up from €160 million (6.1%) in 2024; Q4 Adjusted EBIT at €79 million (10.5% margin).

• Free cash flow for FY 2025 was €125 million, slightly lower than the prior year due to higher CapEx and normalized working capital.

• Adjusted net profit for FY 2025 was €112.9 million, up 26.9% year-over-year.

• Leverage improved to 1.7x Adj. Net Debt/EBITDA from 2.1x in 2024; net financial indebtedness reduced to €542 million.

Outlook and guidance

• 2026 organic net revenue growth expected between +1% and +4% year-on-year (like-for-like, constant FX), with gradual quarterly improvement.

• Adjusted EBIT margin guidance: 7%-8% of revenue, supported by cost efficiencies and operating leverage.

• CapEx planned at 5%-5.5% of revenues, focused on capacity, innovation, and digital initiatives.

• Guidance excludes potential disruptions from recent Middle East geopolitical events.

• Strategic update and long-term guidance to be provided by year-end, targeting mid-single digit organic growth and double-digit profitability.