Rational AG

For the first half of 2026, RATIONAL reported revenue of EUR 642 million, up 8% organically and 6% after FX adjustments; Q2 revenue was EUR 324 million, up 4%. EBIT increased 11% year over year to EUR 170 million, and EBIT margin reached 26.5%; excluding EUR 14 million of tariff refunds, EBIT margin would have been 24.3%. Gross profit rose 7% and gross margin improved to 59.8%. By product, iCombi revenue grew 5% to EUR 562 million and iVario revenue grew 14% to EUR 79 million. For the full year, management expects revenue growth in the mid- to high single-digit percentage range, gross margin slightly below the prior year, and EBIT margin around the upper end of 25% to 26%.

Peter Stadelmann emphasized that the first half developed in line with expectations, with solid growth, strong profitability, and no change to the full-year outlook. He highlighted innovation and market positioning, especially iHexagon and the new iCombi One in China, and said customer engagement at the NRA show and the Sodexo partnership reinforced the company’s growth potential. His tone was confident but measured, repeatedly pointing to underlying demand as solid while acknowledging geopolitical and economic uncertainty.

Jorg Walter focused on the drivers behind the numbers: Europe was the main growth contributor, North America was strong on a currency-adjusted basis, and China remained weak due to Yum China shifting to local sourcing. He said tariff refunds boosted first-half profitability by EUR 14 million, while higher material, logistics, and FX-related costs are expected to keep gross margin slightly below last year and push tariff costs to around EUR 28 million to EUR 29 million for the full year. He also noted strong liquidity/equity despite a 90% dividend payout in May, inventories were higher due to a new Dubai warehouse and seasonal stock-building, and capital returns remain centered on dividends rather than share buybacks.

Analysts pressed management on China, the iCombi One rollout, North American growth, tariffs, backlog, and salesforce expansion. Management said China remains subdued, but customer interest in iCombi One is high and a new key account contract has already been secured; they also said the U.S. remains the #1 growth market and expect North America to grow around 10% to 15% in the second half. On tariffs, management said the full-year impact is expected at EUR 28 million to EUR 29 million, with next year likely around the same range, and reiterated that any future pricing actions would likely be modest and only if efficiency gains are not enough.