Company Reports

Geberit reported 6% EBITDA growth in constant currency in the second quarter, driven by an acceleration in sales volumes. Full-year revenue growth guidance in local currencies is expected to be between 5% and 6%, and a similar EBITDA margin to the prior year. Shares are trading 7% higher intraday.

Geberit's first-quarter EBITDA rose 2.3% in reported terms and 7.5% in local currencies, with the margin expanding 100 basis points to 32.5%, aided by the base effect from prior-year plant closure costs. Three price increases will be introduced in the second quarter.

Geberit is the largest player in the European bathroom sanitary sector with a full range of capabilities on both sides of the wall. Exceptional and stable profitability is due to its brand reputation and close relationships with the key decision-makers for sanitary products, such as plumbers and retailers. While Geberit's brand reputation for reliability underpins its pricing power, its relationships with fragmented intermediaries are equally important to withstand competition. Geberit's end customer lacks meaningful expertise in behind-the-wall sanitary products and instead relies entirely on specialized installers such as plumbers. Continuous product innovation and product range extension justify price increases, which are ultimately passed on to the end consumer, who lacks understanding of behind-the-wall sanitary matters and relies on the support of the intermediary.

Geberit's organic revenue grew 4.8% in fiscal 2025, driven primarily by volume growth. This was achieved despite slightly declining building construction in Europe, which contributes nearly 90% of group sales.

Geberit reported 4.8% organic revenue during fiscal 2025, largely driven by volume growth. Adverse currency movements had a negative 2.3% impact for the full year. Only fiscal 2025 revenue was provided in the trading update. Shares are trading 5% lower intraday Jan. 15.

Geberit is the largest player in the European bathroom sanitary sector with a full range of capabilities on both sides of the wall. Exceptional and stable profitability is due to its brand reputation and close relationships with the key decision-makers for sanitary products, such as plumbers and retailers. While Geberit's brand reputation for reliability underpins its pricing power, its relationships with fragmented intermediaries are equally important to withstand competition. Geberit's end customer lacks meaningful expertise in behind-the-wall sanitary products and instead relies entirely on specialized installers such as plumbers. Continuous product innovation and product range extension justify price increases, which are ultimately passed on to the end consumer, who lacks understanding of behind-the-wall sanitary matters and relies on the support of the intermediary.

Geberit reported a 5.4% increase in organic sales growth during the third quarter. Volume growth was the biggest contributor, driven by recent product innovations its installation and flushing segment.

Geberit is the largest player in the European bathroom sanitary sector with a full range of capabilities on both sides of the wall. Exceptional and stable profitability is due to its brand reputation and close relationships with the key decision-makers for sanitary products, such as plumbers and retailers. While Geberit's brand reputation for reliability underpins its pricing power, its relationships with fragmented intermediaries is equally important to withstand competition. Geberit's end customer lacks meaningful expertise in behind-the-wall sanitary products and instead relies entirely on specialized installers such as plumbers. Continuous product innovation and product range extension justify price increases, which are ultimately passed on to the end consumer, who lacks understanding of behind-the-wall sanitary matters and relies on the support of the intermediary.

Geberit reported a 2.5% uptick in organic sales along with a 2.8% organic EBITDA margin improvement year over year in its fiscal second quarter. The company set its full-year guidance at 4% organic net sales growth and a 29% EBITDA margin, including plant closure costs.

Geberit is the largest player in the European bathroom sanitary sector with a full range of capabilities on both sides of the wall. Exceptional and stable profitability is due to its brand reputation and close relationships with the key decision-makers for sanitary products, such as plumbers and retailers. While Geberit's brand reputation for reliability underpins its pricing power, its relationships with fragmented intermediaries is equally important to withstand competition. Geberit's end customer lacks meaningful expertise in behind-the-wall sanitary products and instead relies entirely on specialized installers such as plumbers. Continuous product innovation and product range extension justify price increases, which are ultimately passed on to the end consumer, who lacks understanding of behind-the-wall sanitary matters and relies on the support of the intermediary.

Geberit reported a 5% increase in first-quarter 2025 revenue, slightly beating FactSet consensus. Shares are largely unchanged.

Geberit reported organic revenue growth of 2.5% during fiscal 2024, outperforming a 3.3% decline in the European construction market.

Geberit reported an impressive 2.5% organic revenue growth during fiscal 2024 despite a substantial decline in the building construction industry since mid-2022.

Wide-moat Geberit delivered a strong third quarter, beating company-compiled consensus and raising its full-year guidance. Its EBITDA margin guidance for the full-year was raised to 29.5% from 29.0%, which we still believe appears to be somewhat conservative. Geberit’s ability to improve its EBITDA margin by 40 basis points to 31% during the third quarter, even in a challenging macroeconomic environment, demonstrates the group's strong pricing and ability to take market share from smaller peers. Shares are trading 6% higher intraday and screen as fairly valued to our CHF 510 fair value estimate, which we maintain.

Wide-moat Geberit delivered strong second-quarter results, broadly in line with company-compiled consensus. EPS grew 7% year over year in constant currency, primarily driven by impressive 5% revenue growth with incremental contributions from EBIT margin expansion and share repurchases, offsetting a higher tax rate. Full-year guidance of flat revenue year over year and a 29% EBITDA margin appear somewhat conservative and below consensus. We believe the soft guidance is behind the 4% share price decline intraday, but should not be viewed negatively by long-term investors. Geberit earned a very impressive 30.3% EBITDA margin during the second quarter, despite increasing investments in growth initiatives, which might undermine short-term profitability, but underpins its long-term pricing power as well as its ability to grow ahead of peers. We maintain our CHF 510 fair value estimate and view shares as fairly valued.

Wide-moat Geberit’s first-quarter results highlighted its strong pricing power through its gross margin expansion of 70 basis points to 73.1%, despite a challenging environment for businesses exposed to construction end markets. Resilient profitability has allowed Geberit to accelerate investment into marketing its recently launched product innovations, which will enable it to continue to extract pricing power and gain market share over its peers. Growth investments and wage inflation contributed to a slight drop in its EBITDA margin to 32.8%, but that still comfortably beat company-compiled consensus estimates by 100 basis points. EBITDA declined by 7% year over year or a mere 0.5% on a constant currency basis. Raw material costs are expected to continue to decline against the prior year, which will protect its profitability and allow Geberit to continue to invest in growth. We maintain our CHF 510 fair value estimate and view shares as fairly valued.

Geberit is the largest player in the European bathroom sanitary sector with a full range of capabilities on both sides of the wall. Exceptional and stable profitability is due to its brand reputation and close relationships with the key decision-makers for sanitary products, such as plumbers and retailers. While Geberit's brand reputation for reliability underpins its pricing power, its relationships with intermediaries is equally important to withstand competition. Geberit's end customer lacks meaningful expertise in behind-the-wall sanitary products and instead places complete reliance on specialized installers such as plumbers. Continuous product innovation and product range extension justify price increases, which are ultimately passed on to the end consumer, who lacks understanding on behind-the-wall sanitary matters and relies on support of the intermediary.

Wide-moat Geberit’s fiscal 2023 results confirm our investment thesis for the group. Strong pricing power and a relentless focus on productivity improvements supported generous capital returns to shareholders, despite weak demand from the construction sector. EBITDA margins expanded 310 basis points to 29.9% in a weak construction environment across Europe, evidence of its strong pricing power, which was further supported by a decline in raw material costs. Having recently revised our forecasts, following Geberit’s earnings prerelease in January, we maintain our CHF 510 fair value estimate and view shares as fairly valued.

Geberit is the largest player in the European bathroom sanitary sector with a full range of capabilities on both sides of the wall. Exceptional and stable profitability is due to its brand reputation and close relationships with the key decision-makers for sanitary products, such as plumbers and retailers. While Geberit's brand reputation for reliability underpins its pricing power, its relationships with intermediaries is equally important to withstand competition. Geberit's end customer lacks meaningful expertise in behind-the-wall sanitary products and instead places complete reliance on specialized installers such as plumbers. Continuous product innovation and product range extension justify price increases, which are ultimately passed on to the end consumer, who lacks understanding on behind-the-wall sanitary matters and relies on support of the intermediary.

Wide-moat Geberit expects to deliver an impressive 30% EBITDA margin for fiscal 2023, at the upper end of the 29%-30% guidance it previously provided. Geberit raised its prices by 8% during the year, underpinned by its brand reputation for reliability and close relationships with critical decision-makers for sanitary products, which has helped keep operating profit largely unchanged in fiscal 2023 in spite of a 5% decline in organic revenue. We expect the group’s EBITDA margin to improve marginally in fiscal 2024 from its impressive fiscal 2023 showing, due to higher volumes and further declines in raw material prices. Shares are trading in line with our CHF 510 fair value estimate, which we maintain.