Carel Industries (CRL) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached €170.9 million, up 15.9% year-over-year and 19.7% at constant exchange rates, marking the fourth consecutive quarter of double-digit organic growth and exceeding guidance.

• Growth was broad-based across all regions and end markets, with HVAC as the main driver, strong momentum in Data Centers and Heat Pumps, and both HVAC and refrigeration segments delivering double-digit organic growth.

• EBITDA rose 38.3% to €36.8 million, with a margin of 21.5%, reflecting strong operating leverage, digital services contribution, and exceeding mid-term guidance.

• Net profit increased 81.5% to €18.4 million, with a tax rate of 23.0%.

• Robust cash generation covered seasonal working capital needs and capex, resulting in a positive net cash position of €24 million at quarter-end.

Financial highlights

• Revenue: €170.9 million (Q1 2026) vs €147.4 million (Q1 2025), +15.9% reported, +19.7% constant FX.

• EBITDA: €36.8 million (21.5% margin), up from €26.6 million (18.1% margin) in Q1 2025.

• Net profit: €18.4 million, up from €10.1 million (+81.5% YoY).

• Capex: €3.7 million, down 16% year-over-year.

• Net cash position: €24 million at quarter-end; excluding IFRS 16, net cash exceeds €50 million.

Outlook and guidance

• Q2 2026 consolidated revenues expected between €180–190 million, representing 13–20% growth over Q2 2025.

• Guidance assumes no material worsening of geopolitical or macroeconomic conditions.

• Order intake and backlog remain strong, but macroeconomic and geopolitical volatility constrain forward visibility.