Zumtobel Group AG

Q1 revenue fell 7.8% to EUR 266.4 million. Lighting revenue was EUR 210.7 million, down 7%, and Components revenue was EUR 70.9 million, down 11.8%. Adjusted EBIT was EUR 6.6 million versus EUR 20.2 million a year ago, with adjusted EBIT margin at 2.5%; Lighting margin was 5.4% and Components margin 1.9%. Special effects were negative EUR 7.4 million, leading to EBIT of minus EUR 0.8 million. Net profit was minus EUR 4 million and EPS was minus EUR 0.09. Operating cash flow was EUR 1.3 million and free cash flow was minus EUR 10.6 million. Net debt rose to EUR 134.4 million and the equity ratio was 41.9%. For FY 2025/26, management expects a single-digit percentage revenue decline, adjusted EBIT margin of 1% to 4%, and CapEx of EUR 50 million.

Alfred Felder said the quarter was again difficult because market conditions remain very challenging, especially weak new construction demand in Europe and geopolitical uncertainty. He emphasized that the strategy launched in early 2024 is starting to show up in project wins across connected lighting, sports, refurbishment, and high-end applications. He also pointed to early signs of recovery in European nonresidential construction, while noting that lighting typically benefits later in the construction cycle.

Thomas Erath said the profit decline was mainly volume-driven, with the Lighting segment’s adjusted EBIT falling from EUR 20.1 million to EUR 11.4 million and Components adjusted EBIT down to EUR 1.3 million. He highlighted EUR 7.4 million of negative special effects, mainly from the U.S. plant closure, and noted negative financial results of EUR 3 million and net financing costs of EUR 2 million. On cash flow, he reported operating cash flow of EUR 1.3 million, investing cash flow of minus EUR 11.9 million, and free cash flow of minus EUR 10.6 million; net debt was EUR 134.4 million and the equity ratio 41.9%.

Analysts pressed on whether DACH trends can improve, the source and timing of restructuring savings, whether margins are mostly hurt by volume, and whether volume growth can return in the second half. Management said DACH could see a slight recovery, especially in refurbishment, but overall demand is still extremely weak and the second half of this fiscal year is likely to remain flat. On restructuring, management said the SG&A program is mostly personnel-related, with 70% to 80% of savings from personnel, and that Phase 2 is starting with expected double-digit million savings.