Zehnder Group AG released its results for the first half of 2026, reporting consolidated revenue of €395 million. That figure represents a 3% increase compared with the same period a year earlier and a 4% rise on a currency-adjusted basis, a performance that slightly exceeded consensus expectations for roughly 1% growth.
Business performance diverged across the company’s two main divisions. The Ventilation division generated €272 million in sales, up 7% from the prior-year period and 8% on a currency-adjusted basis. By contrast, the Radiators division recorded €123 million in revenue, down 5% year-over-year and down 3% on a currency-adjusted basis.
On an adjusted basis, earnings before interest and taxes (EBIT) reached €37.7 million, an increase of 15% versus the prior-year half. That result topped consensus estimates by 9%. The group’s adjusted EBIT margin improved to 9.5%, up from 8.5% one year earlier.
Division-level profitability showed a similar split. Ventilation reported an adjusted EBIT margin of 13.9%, compared with 13.1% in the first half of 2025. The Radiators division continued to operate at a small loss on an adjusted EBIT margin basis, reporting negative 0.1%, an improvement from negative 0.5% a year earlier.
Net profit for the period was €23.9 million, a 2% increase from the prior-year half, with a net margin of 6.1% that was unchanged from the prior-year period.
Cash flow metrics weakened. Operating cash flow declined to €5.1 million from €23 million in the first half of 2025. The company attributed the decline to higher net working capital, primarily driven by an inventory build-up intended to secure supply capacity. Free cash flow moved to negative €3.6 million, compared with positive €16.1 million in the year-earlier half.
Zehnder published full-year 2026 guidance alongside the results. The company expects sales between €770 million and €790 million, which would represent growth of between 1% and 4% year-over-year. The midpoint of the range, €780 million, sits about 1% below consensus estimates of €788 million. For the full year, Zehnder expects an adjusted EBIT margin of approximately 9.5%; at the midpoint that equates to an adjusted EBIT of €74.5 million, about 4% higher than consensus.
Key takeaways from the half-year report include a clear divergence between the Ventilation and Radiators businesses, margin expansion on an adjusted basis for the group as a whole, and a notable deterioration in cash generation driven by inventory accumulation to preserve supply continuity.