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Geberit posted a decline in its second-quarter profit as weak construction activity in Europe continued to affect its performance. The Swiss building materials supplier reported a 2.3% fall in quarterly EBITDA, slightly below analyst estimates. Renovation demand, however, remained stable and now accounts for nearly 60% of sales. While new build activity slowed across Europe and demand in China's housing market weakened, business in India and the Gulf stayed firm. Geberit continues to expect around 4% growth in net sales in local currencies and an EBITDA margin close to 29% for 2025.
Geberit announced that its core profit for the second quarter slipped 2.3%, reaching 236.9 million Swiss francs (USD 293.23 million). This result came in below market expectations and reflected the ongoing pressure from reduced new construction activity across Europe. Analysts had projected stronger earnings, but the figures highlighted how the slowdown in housing markets continues to weigh on the company's operations. Advertisement
Renovation work provided some balance, with this segment making up nearly 60% of overall sales. Demand for bathroom and piping systems in existing properties stayed stable, allowing the company to cushion part of the impact from weaker new build orders.
Performance across regions showed a mixed picture. In China, a continued slowdown in the residential sector hurt sales. In contrast, India and the Gulf region remained positive markets, contributing to overall stability in demand. The company's strategy of focusing on local production helped reduce the effect of U.S. tariffs, keeping costs under control.
For the first half of the year, Geberit reported a small overall decline in EBITDA, falling 0.7% to 514 million Swiss francs from 517.5 million a year earlier. The first six months of 2025 therefore reflect steady renovation demand offsetting weakness in European construction.
Geberit's shares have remained strong despite the quarterly miss. Until now, the stock has risen by about 22% since the beginning of the year, outperforming the Swiss SMI index, which is up only around 4%. This trend shows that investors remain confident in the company's long-term positioning, even as short-term earnings face pressure.
Looking forward, the group confirmed its outlook for 2025, expecting about 4% growth in net sales (measured in local currencies) and an EBITDA margin close to 29%. While construction activity in Europe is expected to remain subdued, renovation projects and growth in emerging markets are set to play a central role in driving results for the rest of the year.
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