Zehnder Group AG is a Swiss manufacturer of premium indoor climate systems, ranging from heating and cooling to ventilation and air purification. Founded in 1895 and headquartered in Gränichen, the company has around 3,500 employees and operates production facilities in Europe, China, and North America. It’s publicly listed on the SIX Swiss Exchange under the ticker ZEHN.
📈 Investment Pitch Deck
Business Overview
- Offers high-efficiency radiators, heat-exchange and ventilation systems, and air-cleaning solutions.
- Manufacturing footprint spans Europe, China, and North America; sales in over 70 countries.
- Strategic transition away from traditional radiator business toward full indoor climate systems.
Recent Financial Performance (2024)
Strategic divestments (e.g., Climate Ceiling Solutions) and restructuring led to short-term profit declines but initiated cost savings and refocus.
|
Metric |
2024 |
Change |
|
Net Sales |
€705.8 m |
–7.4 % |
|
EBITDA adj. |
€77.0 m |
–12.1 % |
|
EBIT adj. |
€50.1 m |
–20.5 % |
|
Net Profit |
–€2.4 m |
vs €44.6 m prior |
|
Operating Cash Flow |
€60.6 m |
–30.9 % |
|
ROCE |
15.4 % |
Strategic Transformation & Growth Initiatives
- Sold underperforming “Climate Ceiling” segment; acquired Spain’s Siber ventilation business.
- Vision to become a high-tech indoor climate provider, pivoting from component manufacturing.
Financial Outlook & Analyst Signals
- Market forecasts anticipate earnings rebound: expected ~4.8% revenue and ~46% EPS growth annually over three years.
- Stock viewed as ~20% undervalued by some analysts.
Risks
- Cyclicality: reduced construction demand and raw material pricing pressure impacting sales.
- Restructuring costs: One-off charges (~€30–35m) may drag near-term profitability.
- Currency risk: CHF-Euro/USD fluctuations may affect financials.
✅ Investment Summary
Zehnder Group is undergoing a strategic transformation into a high-value indoor climate specialist. Though 2024 faced earnings decline due to restructuring and weaker markets, the transformation—backed by acquisitions and cost discipline, sets the stage for margin recovery and long-term growth. Attractive valuation upside arises if the macro environment and investment cycles rebound.