Geberit’s Q2 Profit Falls 2.3% Amid European Construction Slowdown

Geberit

SWITZERLAND: Building materials supplier Geberit reported weaker-than-expected Q2 earnings as Europe’s construction sector continued to struggle. Core profit (EBITDA) fell 2.3% to 236.9 million Swiss francs (US$293.23 million) from 242.6 million francs (US$299.57 million) a year earlier, missing analysts’ consensus by 2%. The company attributed the decline to a slump in new construction across Europe and warned that this trend will persist in the second half of the year.

Despite the headwinds, Geberit maintained optimism about its renovation business, which makes up around 60% of sales and is expected to perform strongly, helping offset weakness in new builds. Outside Europe, the company expects a mixed outlook, with a slowdown in China’s residential construction but strong demand in India and the Gulf region. For 2025, Geberit continues to project net sales growth in local currencies of about 29%. Broader challenges in Europe’s construction sector—including inflation, high energy costs, and geopolitical uncertainties—remain a drag, particularly in Germany, where the property market has been in steep decline since 2022. The company also noted that U.S. tariffs have had negligible impact due to its strategy of local manufacturing.

Source: The Economic Times