Rational AG

RATIONAL reported first-half 2026 revenue of EUR 642 million, up 8% organically and 6% after FX adjustments, and Q2 revenue of EUR 324 million, up 4%. First-half EBIT increased 11% year over year to EUR 170 million, with EBIT margin at 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%, while operating expenses increased 5% to EUR 215 million. Regionally, Germany and Europe each grew 9%, North America rose 4% in reported terms (10% before FX), and Asia declined 2%, with China down 25%. For 2026, management kept guidance for mid- to high single-digit revenue growth and EBIT margin around the upper end of 25% to 26%, while saying gross margin should be slightly below prior year and tariffs for the full year are expected to be EUR 28 million to EUR 29 million.

Peter Stadelmann said the first half developed in line with expectations despite geopolitical and economic uncertainty, and emphasized that underlying demand stayed solid. He highlighted innovation and market leadership, pointing to the iHexagon launch, the NRA show, and the Sodexo partnership as examples of customer interest and brand strength. He also stressed that expanding the sales force and compacting territories is an ongoing priority to support further market penetration.

Jorg Walter focused on the financial bridge: revenue growth outpaced costs, EBIT rose to EUR 170 million, and gross profit increased 7% to a 59.8% margin despite higher material, logistics, and tariff-related costs. He said the EUR 14 million tariff refund lifted profitability, but even excluding it the 24.3% margin remained in line with guidance. He also noted higher inventories to secure delivery, a very strong balance sheet, equity up nearly EUR 40 million year over year despite the May dividend payout, and reiterated a payout framework centered on about 70% plus possible special dividends rather than buybacks.

Analysts pressed management on China, where weak consumer sentiment and Yum China’s local sourcing strategy continue to hurt sales. Management said iCombi One is developing well, customer interest is high, a key-account contract has been secured, and the product is meant to defend share against lower-priced local competitors while offering stronger quality and service. Questions also focused on tariffs, with management saying full-year tariff impact is expected at EUR 28 million to EUR 29 million and that next year could be roughly EUR 2 million to EUR 3 million higher as U.S. business grows.