Sonova Holding AG

For FY2025/26, Sonova said total segment sales in Hearing Instruments rose 7.5% to CHF 3.4 billion, wholesale sales increased 9.5% to CHF 1.9 billion, retail sales increased 5.1% to CHF 1.5 billion, and Cochlear Implants sales declined 11% to CHF 252 million (or 3.8% lower excluding China). Normalized EBITDA in Hearing Instruments increased 17.3% to CHF 794 million, with a 23.7% margin; Cochlear Implants normalized EBITDA was CHF 17.2 million with a 6.8% margin. Management also said normalized EBITDA for the group rose 17.3% and EPS grew 16%. For FY26/27, the company guided for consolidated sales growth of 5% to 8% and core EBIT growth of 7% to 10% at constant exchange rates; FX was expected to reduce Swiss franc sales growth by 1 to 2 percentage points and Swiss franc core EBIT growth by 2 to 3 percentage points. Non-core items were guided at CHF 35 million to CHF 40 million.

Eric Bernard described the year as “very successful,” emphasizing that Sonova outperformed the hearing care market and fully met guidance. His tone was confident and strategic, focusing on the renewed plan to reach CHF 6 billion in revenue by FY2030/31 through innovation, a multichannel multi-brand approach, and operational excellence. He repeatedly pointed to product launches, especially Virto R, Sphere Ultra, and the next hearing-aid platform and CI processor, as the main growth drivers.

Elodie Carr-Cingari said operating expenses rose modestly by 1.1% despite strong sales, creating substantial operating leverage. She noted R&D expense growth of 3.8%, sales and marketing up 1.5%, and G&A essentially flat; normalized EBITA rose 17.3% with a 240 basis point margin improvement in local currencies. She also detailed about CHF 90 million of normalizations, including CHF 28 million of legal costs, about CHF 24 million of product-liability reassessments, and around CHF 35 million of software impairment, while highlighting operating free cash flow, cash conversion above 90%, ROCE of 19%, and net debt/EBITDA of 1.1x. For the new year, she guided to CHF 35 million to CHF 40 million of non-core items, mainly restructuring and acquisition-related transaction/integration costs, and said M&A should contribute about 1% to 2% to group growth.

Analysts focused on what underpins the 5% to 8% sales guide, the phasing of EBIT across H1/H2, and whether Virto R, Costco, and the U.S. VA were driving share gains. Management said Virto R has reached a “cruising altitude” of about CHF 120 million annualized revenue from zero, has not yet shown meaningful competitor impact, and contributed to broad share gains without obvious cannibalization. On phasing, Elodie said core EBIT growth should stay within the 7% to 10% range in both halves, while Eric added that CI should improve in H2 after the planned processor launch, subject to regulatory approval. They also said U.S. growth was driven mainly by VA, share, and price rather than M&A, and that Costco share improved in H2, implying more revenue contribution in FY26/27.