Results read-through Sika 2Q26 and Forbo 1H26: Gradual recovery ahead

Research evidence excerpt

Results read-through Sika 2Q26 and Forbo 1H26: Gradual recovery ahead

ad-through is Flooring

12/27E 5.38 5.47

Systems, where org growth reached +2.2% (price/vol +2.0/+0.2%) despite continued

12/28E 6.43 6.20

weakness in construction and refurbishment markets. While the Americas remained

soft, EMEA showed more encouraging trends, suggesting a mixed but stabilizing Leonie Zirn

backdrop for Zehnder's Radiators business. Mgmt remains cautious for 2H26, expecting Analyst

end-markets to stay challenging and procurement costs to remain elevated. leonie.zirn@ubs.com

Sika: Sika delivered strong sales growth in 2Q with vol/price at 3.5/2.2% (2.9% org in +41-44-235 0154

1H26) with further good momentum into 3Q. Sika’s EMEA business accelerated to Patrick Rafaisz, CFA, FRM

7.7% lc growth in H1 (vs. 1.9% in 2025), supported by strong momentum in Eastern Analyst

Europe, Spain, Greece and an improving performance in Germany, indicating a more patrick.rafaisz@ubs.com

favorable building demand backdrop in Zehnder’s European markets. The improved Q2 +41-44-239 90 66

trend in Germany is particularly encouraging. Strong growth in Canada's construction

points to a somewhat positive demand environment for Zehnder’s North American

business (but infra still leading growth). The industry business, which shows a closer read

for the Zehnder's Ventilation business, posted y/y decline of -1.2%. These results,

alongside upgraded full-year sales guidance of 3% to 6%, suggest a gradually

recovering demand environment in key European construction markets.

Valuation:DCF-based PT of CHF87 / Shares trade at attractive discount

We continue to view the shares as attractive at a c40/46% discount vs Ventilation/Swiss

building peers on EV/EBITDA FY27E. Our PT is DCF-based (WACC 9.3%, t-growth