Zehnder Group (AO) | Hold | Feedback from conference call: Moving further in the right direction

Research evidence excerpt

Zehnder Group (AO) | Hold | Feedback from conference call: Moving further in the right direction

Zehnder Group Hold | Target Price: CHF81.00

Company description Management

Zehnder is an international provider of energy-efficient solutions for indoor Matthias Huenerwadel (CEO)

climate. The group offers indoor ventilation with heat recovery, individual René Grieder (CFO)

designer radiators, heating and cooling ceiling systems, as well as clean air Hans-Peter Zehnder (Chairman)

systems. The company is the market leader in numerous countries in both its Key shareholders

ventilation and radiator businesses. Zehnder's dominant geographic market is Free float 81.10%

Europe, followed by North America and China, which now account for c. 15% and Graneco AG, Gränichen (Switzerland) 51.68%

c. 4% of group sales, respectively. Swisscanto Fondsleitung AG 3.08%

Investment case Valuation methodology

Based on the leading indicators for the construction industry, We use a sum-of-the-parts model, separately valuing the

we continue to expect Zehnder's European ventilation markets Ventilation and the Radiators business areas.

to continue to rebound in 2026. However, given the headwinds Risks to our rating

from geopolitics, we now anticipate growth to slow significantly Slower- or faster-than-expected European new construction

in 2027E activity mainly in the residential sector.

Despite the lower expected operational leverage and mainly Slower- or faster-than-expected increase in raw material and

based on the self-help measures targeting broader market energy prices.

presence and an improved cost structure, we still expect We estimate that a +/-10% change in the EUR/CHF rate would

underlying margins to rise in 2026-27E, albeit more moderately. lower/increase our EPS estimates (in EUR) by 5%.