This article first appeared on GuruFocus .
-
Organic Revenue Growth:14% in Q3, 8.4% year-to-date excluding exchange rates.
-
Total Revenue:EUR 463.7 million for the first nine months, up 7.1% from 2024.
-
EBITDA Margin:19.8% adjusted, 19.6% reported for the nine months; approximately 21% in Q3.
-
Net Debt:Reduced to approximately EUR 14.8 million from EUR 50.2 million at the end of 2024.
-
Net Operating Cash Flow:Doubled compared to the same period last year, cash positive excluding IFRS 16 impact.
-
Net Profit:EUR 42.3 million, up 6.6% from EUR 40.2 million last year.
-
CapEx:EUR 15.3 million, down from EUR 22 million last year.
-
HVAC Organic Growth:14% in Q3, 9.4% year-to-date.
-
Refrigeration Organic Growth:13% in Q3, 6% year-to-date.
-
Free Cash Flow:EUR 63.5 million for the first nine months, compared to EUR 17.9 million last year.
-
Warning! GuruFocus has detected 7 Warning Signs with FRA:CIG.
-
Is FRA:CIG fairly valued? Test your thesis with our free DCF calculator.
Release Date: November 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Carel Industries SpA ( FRA:CIG ) reported a strong Q3 with organic revenue growth of 14%, exceeding expectations.
-
The EBITDA margin reached its highest level in the past seven quarters, indicating improved profitability.
-
The company achieved significant cash generation, reducing net debt to approximately EUR14.8 million from EUR50.2 million at the end of 2024.
-
The HVAC sector was a primary growth driver with over 14% organic growth in Q3, supported by strong performances in data centers, commercial, and residential markets.
-
Carel Industries SpA ( FRA:CIG ) maintained a solid working capital management, resulting in a cash positive position when excluding IFRS 16 impacts.
Negative Points
-
The company faced a negative foreign exchange impact of EUR3.7 million in Q3, primarily due to the weak US dollar.
-
Despite strong performance, the company expressed caution regarding Q4 due to potential volatility in December and strong comparables from the previous year.
-
CapEx spending was lower than the previous year, with Q3 spending at just EUR2 million, raising questions about future investment levels.
-
The South Asia Pacific region continued to suffer from weak macroeconomic conditions, impacting overall growth.
-
The company anticipates a seasonal decline in profitability for Q4, reverting to historical trends with higher operational costs.
Q & A Highlights
Q: Can you provide a ranking of the main verticals in HVAC and clarify the growth trends, especially regarding heat pumps and data centers? A: Francesco Nalini, CEO: The ranking remains similar to Q2, with residential HVAC growing the fastest, followed by data centers, commercial, and industrial. Data centers are particularly strong in North America, China, and India. Commercial HVAC is also posting solid growth, especially in America and Europe, driven by cross-selling and market recovery. Heat pumps in Europe are recovering as overstocking issues have resolved, and production is now meeting demand.
Q: Why does the guidance suggest a slight slowdown in Q4 compared to Q3 growth? A: Francesco Nalini, CEO: Q4 last year was strong, and December is typically volatile due to potential factory shutdowns by OEMs for inventory management. We are cautious due to these factors, but we do not foresee significant changes in trends.
Q: What is the outlook for CapEx, given the low spending in Q3? A: Nicola Biondo, CFO: We aim for CapEx to be around 5% of revenues in the midterm. This year, it will be closer to 4% due to project timing. We are planning significant projects for the future, which will bring us back to the 5% level.
Q: Can you elaborate on the growth acceleration in the residential HVAC market and your exposure across geographies and technologies? A: Francesco Nalini, CEO: Growth is primarily from Germany and Northern Europe, mainly in air-to-water heat pumps, which are currently the largest volume segment. Our customer base is spread across Europe and China.
Q: How sustainable is the performance of Kiona, and what are your expectations for its future growth? A: Francesco Nalini, CEO: Kiona is performing well, with profitability exceeding 25% and double-digit growth. We are expanding internationally and integrating AI-powered algorithms to enhance its offerings. We believe Kiona's growth is sustainable and should improve as international expansion progresses.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
