This article first appeared on GuruFocus .
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Revenue:EUR629 million in 2025, up 8.7% from 2024 or 10.6% organic growth at fixed exchange rates.
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Q4 Organic Growth:16.9% organic growth in Q4 2025.
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HVAC Organic Growth:Approximately 19% in Q4 2025.
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Refrigeration Organic Growth:11% in Q4 2025.
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Adjusted EBITDA:EUR126.1 million in 2025, 20% of sales, up from EUR106 million in 2024.
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Net Profit:EUR73.6 million in 2025, up 17.6% from EUR62.6 million in 2024.
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Tax Rate:22.6% in 2025, up from 20.8% in 2024.
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CapEx:EUR22.8 million in 2025, 27.8% lower than 2024.
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Operating Cash Flow:EUR140 million in 2025.
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Free Cash Flow:EUR97.4 million in 2025, up from EUR53.8 million in 2024.
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Net Financial Position:Positive EUR18 million, or EUR48 million excluding IFRS 16 effect.
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Dividend Proposal:EUR0.195 per share, approximately 30% of net profit.
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North America Organic Growth:Over 30% in Q4 2025.
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Refrigeration Performance in North America:Over 50% organic growth in Q4 2025.
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Release Date: March 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Carel Industries SpA ( FRA:CIG ) reported a fourth consecutive quarter of double-digit organic growth, with Q4 2025 achieving a 16.9% increase.
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The company saw strong performance across all regions except South America, with notable growth in North America and EMEA.
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Adjusted EBITDA grew by 19% to EUR126.1 million, reaching 20% of sales, which is at the upper end of their mid-cycle expectation for profitability.
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Carel Industries SpA maintained a strong cash generation with EUR140 million of operating cash flow and almost EUR100 million of free cash flow.
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The company is planning to start a third manufacturing plant in North America by the first half of 2027, indicating confidence in continued growth.
Negative Points
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South America experienced flat organic growth in 2025, negatively impacted by a weak economic environment in Brazil.
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The tax rate increased to 22.6% in 2025 from 20.8% in 2024 due to a different country mix.
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There are emerging tensions in raw material costs, particularly in memory components and metals like aluminum, which could impact future profitability.
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The international expansion of Kiona took longer than expected, resulting in sales growth slightly below initial ambitious plans.
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The geopolitical environment, including the conflict in the Middle East, remains uncertain and could affect future visibility and forecasting.
Q & A Highlights
Q: Are you seeing any signs of resurfacing inflation, and how might this affect your EBITDA in 2026? A: Francesco Nalini, CEO: We are noticing some tensions in raw material costs, particularly in memory components and metals like aluminum. However, these are limited in scope, and we plan to adjust prices accordingly. Our mid-cycle expectation remains positive for gross profitability, and while we have room for EBITDA expansion, our focus is on growth and technology investment rather than margin expansion.
Q: Can you provide an update on the M&A pipeline given your strong cash position? A: Francesco Nalini, CEO: We have significant firepower for M&A and are in discussions to acquire complementary technologies that enhance our system offerings. This remains a strategic focus for us.
Q: How do you view the continuation of strong growth in the data center market, and what impact might NVIDIA's hot water cooling technology have? A: Francesco Nalini, CEO: We see no signs of a slowdown in data center growth, especially in the US. NVIDIA's technology is unlikely to impact us significantly as we focus on different parts of the cooling loop. Our technology remains essential for redundancy and efficiency in data centers.
Q: What is driving the strong growth in North America's Refrigeration segment, and how significant is the transition to natural refrigerants? A: Francesco Nalini, CEO: The transition to natural refrigerants and energy-efficient solutions is a major driver. Despite potential regulatory reversals, large retailers are likely to continue this transition, providing us with significant growth opportunities due to our expertise in this area.
Q: Can you elaborate on the seasonality of your business and the impact of FX on your Q1 guidance? A: Francesco Nalini, CEO: Our quarters are generally even, but Q1 and Q4 can be softer due to factors like the Chinese New Year. We don't make significant FX assumptions, and our natural hedging helps mitigate top-line impacts at the EBITDA level.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
