Geberit: Sales growth significantly above market development

The Geberit Group achieved convincing results in the first nine months of 2025 despite the continuing challenging environment. For 2025 as a whole, the company expects net sales growth in local currencies of around 4.5% and an EBITDA margin of around 29%.

In the first nine months of 2025, net sales for the Geberit Group increased by 2.0% to CHF 2,448 million. Adjusted for negative currency effects of CHF 58 million, the increase came to 4.4%. This was driven by strong volume growth as a result of the continuing very pleasing development of newly introduced products and growth in most European countries/regions.

Net sales in the third quarter reached CHF 783 million, which is equivalent to an increase of 2.7% in Swiss francs compared to the same quarter in the previous year. Adjusted for currency effects, this resulted in an increase of 5.4%, following +2.5% in the second quarter and +5.3% in the first quarter.

Net sales by markets and product areas

Despite continued challenging conditions for the sanitary industry, currency-adjusted net sales in Europe increased by +3.9%. Significant increases were achieved in Austria (+10.0%), Benelux (+6.0%), Eastern Europe (+6.0%) and Germany (+5.6%). There was also growth in Northern Europe (+2.1%), Italy (+1.1%) and Switzerland (+0.3%). In contrast, Western Europe (-1.1%) recorded a decline. Outside Europe, significant growth was achieved in the Middle East/Africa (+21.7%) and America (+5.9%) regions. In contrast, sales in the Far East/Pacific region (-6.0%) were down on the previous year due to the continuing decline in the Chinese market and despite significant growth in India.

In the product areas, currency-adjusted net sales increased by +5.0% in Bathroom Systems, +4.9% in Installation and Flushing Systems and +3.2% in Piping Systems.

Results

The operating results were impacted by negative currency developments. In contrast, operating margins were only slightly affected by the currency effects due to the long-term currency strategy, in which costs should be incurred in the same currencies as sales whenever possible. Overall, operating margins remained at the prior year level, excluding the one-off costs for the closure of a German ceramics plant which was announced in January 2025.

The pleasing volume growth and the slightly lower direct material costs compared to the previous year had a positive effect on the margins, while wage inflation, higher energy prices, growth initiatives in selected developing markets and various digitalisation and IT projects had a reducing impact.

In total, operating cashflow (EBITDA) reached the previous year’s level at CHF 753 million. After currency adjustments, an increase of 3.1% was achieved. The EBITDA margin decreased to 30.8% (it was 31.4% in the same period in the previous year) due to the aforementioned one-off costs. Net income decreased by 1.2% to CHF 494 million, corresponding to a return on net sales of 20.2% (previous year 20.9%).

Outlook 2025

In its 9-month report, the company underlines the fact that “geopolitical risks and the associated macroeconomic uncertainties remain at a high level. Overall, the global economy will continue to be exposed to significant uncertainties. While Europe continues to be faced with muted growth prospects, the additional US tariffs could have a negative impact on economic development in the US and on the global economy”.

After the sharp declines since mid-2022, demand in the building construction industry has stabilised overall in the first nine months of 2025, with different developments in the new construction and renovation business depending on the country/market. In Europe, a slight decline in new construction activities is expected to continue until the end of 2025. This is due to the fact that building permits in Europe declined by around 2% in 2024 and continued to fall by a further 3% in the first half of 2025.

This decline should be offset by a positive outlook for the renovation business, which accounts for around 60% of Geberit’s sales. Several indicators relevant to this area suggest this, including the increase in real estate transactions.

Outside Europe, the outlook for the building construction industry is mixed. Strong demand is forecasted in several markets, such as India and the Gulf region. In China, however, a decline is expected due to the challenging residential construction sector.

The impacts of the US tariffs are not material for Geberit, due to the fact that the company mainly sells products in the US that are also manufactured locally.

Regardless of the market environment, Geberit’s focus in 2025 remains on implementing various strategic initiatives, including, among others, the consistent advancement of dedicated growth initiatives outside Europe, and the optimisation of the ceramics plants as part of the specialisation strategy.

For 2025 as a whole, the company Management expects net sales growth in local currencies of around 4.5% and an EBITDA margin of around 29%.