Company Reports

Rational reported first-half earnings on Aug. 8, broadly in line with our expectations. Organic sales growth of 8% was accompanied by 26.5% EBIT margin, aided by tariff reimbursements. Management reiterated 2026 guidance of mid- to high-single-digit sales growth and EBIT margin between 25 and 26%.

Rational’s multifunctional cooking appliances enjoy a 50% market share, yet its runway opportunity remains lengthy since the majority of professional kitchens still use traditional cooking appliances. Its product offering consists of two products, the iCombi, which contributes 60% of group sales, and the iVario multifunctional cooking systems, which contribute 10% of group sales. The balance of revenue is from aftermarket sales of accessories, spare parts, and services. Having pioneered the technology that combined hot air and steam for mass catering purposes, Rational has constantly been working on product upgrades to improve cost savings versus traditional cooking appliances and existing models.

Rational’s multifunctional cooking appliances enjoy a 50% market share, yet its runway opportunity remains lengthy since the majority of professional kitchens still use traditional cooking appliances. Its product offering consists of two products, the iCombi, which contributes 60% of group sales, and the iVario multifunctional cooking systems, which contributes 10% of group sales. The balance of revenue is from aftermarket sales of accesories, spare parts, and services. Having pioneered the technology that combined hot air and steam for mass catering purposes, Rational has constantly been working on product upgrades to improve cost-savings versus traditional cooking appliances and existing models.

Rational delivered a solid first quarter, posting strong organic sales growth of 11% alongside a softer EBIT margin of 23.9%. Management reaffirmed full-year guidance.

Rational published its fiscal 2025 results, confirming the preliminary results announced on Feb. 5, 2026, with no material surprises. Management issued guidance for fiscal 2026 of mid- to high-single-digit sales growth and an operating margin of between 25% and 26%.

Rational reported 8% organic sales growth and 10 basis points of margin expansion in its 2025 preliminary results update. Full-year operating margin of 26.4% exceeded management's guidance of around 26%. The shares were trading 12% higher on Feb. 5.

Rational’s multifunctional cooking appliances enjoy a 50% market share, yet its runway opportunity remains lengthy since the majority of professional kitchens still use traditional cooking appliances. Its product offering consists of two products, the iCombi, which contributes 60% of group sales, and the iVario multifunctional cooking systems, which contributes 10% of group sales. The balance of revenue is from aftermarket sales of accesories, spare parts, and services. Having pioneered the technology that combined hot air and steam for mass catering purposes, Rational has constantly been working on product upgrades to improve cost-savings versus traditional cooking appliances and existing models.

Rational reported 9% organic revenue growth during the third quarter, which was partially offset by unfavorable currency movements. Revenue growth was broad-based, with Europe (53% of sales) being the best-performing region. The EBIT margin fell by 50 basis points to 25.9%.

Rational reported 5% sales growth in second-quarter fiscal 2025, beating company-compiled consensus. Full-year guidance for mid-single-digit organic revenue growth and an EBIT margin around 26% was kept unchanged. Shares are trading 1.6% higher on Aug. 5.

Rational’s multifunctional cooking appliances have a significant presence in restaurants and community catering. Its granular strategy focuses on two cooking appliances used by professional kitchens and significant reinvestment into product development. This should allow the group to maintain its dominant market share of 50% and earn high returns on invested capital through superior product differentiation. Having pioneered the technology that combined hot air and steam for mass catering purposes, Rational has constantly been working on product upgrades to improve cost-savings versus traditional cooking appliances and existing models. Its latest product innovation combining hot air, steam, and microwave was launched at the start of 2024.

Rational reported first-quarter 2025 results with sales up by 3% year over year, missing company-compiled consensus. Management reiterated full-year guidance. Shares traded 6.8% lower intraday.

Rational reported a 6% increase in full-year organic revenue, in line with preliminary figures provided on Feb. 6. 2025. Full-year fiscal 2026 guidance indicates a stable operating margin. Shares are trading 6% lower on March 27 intraday.

Shares in Rational are trading 4% higher intraday following the preliminary release of its fiscal 2024 results. EBIT grew 13% year over year, translating into a 170-basis-point EBIT margin of 26.3%.

Rational’s multifunctional cooking appliances have a significant presence in restaurants and community catering. Its granular strategy focuses on two cooking appliances used by professional kitchens and significant reinvestment into product development. This should allow the group to maintain its dominant market share of 50% and earn high returns on invested capital through superior product differentiation. Having pioneered the technology that combined hot air and steam for mass catering purposes, Rational has constantly been working on product upgrades to improve cost-savings versus traditional cooking appliances and existing models. Its latest product innovation combining hot air, steam, and microwave was launched at the start of 2024.

Narrow-moat Rational reported third-quarter sales of EUR 294 million, up 8% year on year but slightly below FactSet consensus. Shares are trading 4% down intraday, which we believe highlights the lofty expectations incorporated in their share price. With no changes to our estimates, we maintain our EUR 630 fair value estimate and view the shares as overvalued.

We’re maintaining our EUR 630 fair value estimate for narrow-moat Rational following its impressive second quarter, which beat FactSet consensus estimates for revenue and EPS. Shares are trading 4% higher intraday. Second-quarter EBIT growth of 12% year over year outpaced its 6% revenue growth and was underpinned by lower raw material costs. Full-year guidance was maintained, which might seem conservative given its impressive operating growth and large beat on the bottom line. Shares screen as overvalued, trading at a 25% premium to our fair value estimate.

Rational’s multifunctional cooking appliances have a significant presence in restaurants and community catering. Its granular strategy is focused on two cooking appliances used by professional kitchens combined with significant reinvestment into product development, which should allow the group to maintain its dominant market share of 50% and earn high returns on invested capital through superior product differentiation. Having pioneered the technology that combined hot air and steam for mass catering purposes, Rational has constantly been working on product upgrades to improve cost-savings versus traditional cooking appliances and existing models. Its latest product innovation combining hot air, steam, and microwave was launched at the start of 2024.

Narrow-moat Rational managed to grow organic revenue impressively by 2% year over year during the first quarter, which faced a comparison of 25% growth against the previous year. Asia and North America continue to offer the group a significant runway, growing 28% and 13%, respectively. We expect the introduction of new product innovations during the quarter to support growth and help expand its addressable market due to the added benefits its cooking appliances provide to professional kitchens versus traditional cooking appliances. Management kept its full-year revenue guidance in the mid- to high-single-digit percentage range as demand remains robust and comparables against the prior year become easier as the year progresses. Shares are trading at a 30% premium to our EUR 600 fair value estimate, which we maintain.

Narrow-moat Rational delivered a 17% increase in operating profits during fiscal 2023, which was driven by the brand’s strong pricing power, more than compensating for an increase in investments into research and development and marketing to fuel future growth. Its EBIT margin expanded 140 basis points to an impressive 24.6%, which management expects to be at similar levels in fiscal 2024. Rational’s reinvestment into product development and expanding its geographic footprint will help maintain its leading market share and increase adoption of its large addressable market for multifunctional cooking appliances. Shares are trading at a 30% premium to our unchanged EUR 600 fair value estimate.

Rational’s multifunctional cooking appliances have a significant presence in restaurants and community catering. Its granular strategy is focused on two cooking appliances used by professional kitchens combined with significant reinvestment into product development, which should allow the group to maintain its dominant market share of 50% and earn high returns on invested capital through superior product differentiation. Having pioneered the technology that combined hot air and steam for mass catering purposes, Rational has constantly been working on product upgrades to improve cost-savings versus traditional cooking appliances and existing models.