Ariston Holding N.V.

Earnings Release • Jul 31, 2025

31 July 2025

Ariston Group reports +3.6% organic revenue growth and 50 bps margin improvement in Q2; 2025 guidance confirmed with narrowed range on net revenues

H1 2025 RESULTS1 HIGHLIGHTS

• Net revenues amounted to 1,292 million euro, with an increase of 1.4% compared to H1 2024 (up 3.0% YoY organically² ), of which 644 million euro in Q2 (up 3.6% YoY organically² ) due to heating business improvement.
• Adjusted EBIT amounted to 66 million euro, increasing 15.5% compared to H1 2024, of which 31 million euro in Q2, up 13.9% YoY.
• Free cash flow at -14 million euro, improving versus -24 million euro in H1 2024. +3 million euro generated in Q2.
• Net debt3 of 680 million euro, compared to 603 million euro as of year-end 2024, mainly due to free cash flow seasonality, distribution to shareholders and cash-out for acquisitions.

2025 GUIDANCE AND MID-TERM VIEW

• 2025 guidance is confirmed with narrowed range on net revenues:
  • − Organic net revenues growth narrowed to a range between +1% and +3% YoY (previously between 0% and +3%) on a like-for-like basis² , thanks to European heating demand, continued water heating performance and an optimised product mix.
  • − 2025 adjusted EBIT margin: higher than 7%, thanks to efficiency initiatives program.
• Mid-term outlook remains unchanged, with expectations of mid-single-digit organic growth, supported by market demand recovery and an improved country-product mix.

The guidance does not incorporate the potential demand-side implications of ongoing tariff discussions or prospective adjustments across our key markets.

Paolo Merloni, Executive Chairman commented: "In this complex global geopolitical and market landscape, Ariston Group remains focused on executing our growth strategy by combining organic initiatives with inorganic actions to drive long-term value creation. We continued to deliver organic growth and focused on long-term investments; in parallel, we secured a strategic partnership with Lennox to accelerate growth of our water heating business in North America and completed two bolt-on acquisitions to further strengthen our Components Division."

¹ Reported figures.

² Excluding FX and represented like-for-like (e.g., Ariston Thermo Rus LLC deconsolidated from 2024 and excluded from 2025 figures).

³ Calculated according to ESMA 32-382-1138 guidelines.

Maurizio Brusadelli, Chief Executive Officer added: "In line with our projections, the market gradually normalized in the first half of the year. Ariston Group continued to deliver positive organic growth by leveraging our broad product portfolio, cutting-edge technology, and strong industrial capabilities. We continue to advance the simplification of our operating model while investing in go-to-market initiatives, digitalization, and R&D to support future growth."

The Board of Directors of Ariston Holding N.V. (MTA/EXM; Bloomberg ticker: ARIS IM) met today and approved the consolidated half-year report for the six-months ending on June 30th, 2025 ("H1 2025").

H1 2025 CONSOLIDATED RESULTS

Net revenue amounted to 1,292 million euro, an increase of 3.7% compared to the 1,246.3 million euro registered in the first half of 2024 (excluding Russia), with an organic contribution of 3.0% and foreign exchange effect of -0.9%.

Net revenues from perimeter variation amounted to 20.4 million euro, of which 18.6 million euro from Russian subsidiary after reconsolidation at the end of March.

€M	H1 2025	H1 2024 (excluding Russia)	Change	o/w perimeter variation
Thermal Comfort	1,203.4	1,162.0	+3.6%	18.6
Burners	42.4	42.4	+0.0%
Components	46.0	41.8	+10.0%	1.8
Total	1,291.8	1,246.3	+3.7%	20.4

€M	H1 2025	H1 2024 (excluding Russia)	Change	o/w perimeter variation
Europe	929.8	887.9	+4.7%	18.6
Americas	127.9	128.1	-0.2%	1.8
Asia/Pacific & MEA	234.1	230.2	+1.7%
Total	1,291.8	1,246.3	+3.7%	20.4

EBITDA stood at 158.1 million euro compared with 64.4 million euro in H1 2024, while EBIT amounted to 89.2 million euro, compared with -3.6 million euro in the first half of last year.

These margins are also presented in an adjusted form which is more suitable to appreciate the trend of the normal business operations, with the exclusion of costs or revenues not representative of them; the most significant adjustments for the period were the impact of Ariston Thermo Rus LLC reconsolidation and PPA amortization related to past acquisitions.

Adjusted EBITDA totalled 124.5 million euro, with a 9.6% margin on net revenue, compared with 113.2 million euro (8.9% margin) in H1 2024.

Adjusted EBIT amounted to 65.9 million euro, compared with 57.0 million euro in H1 2024; the corresponding margin on net revenue increased to 5.1% from 4.5% in the first half of last year. The improvement was driven by our efficiency initiatives and positive effect of operating leverage partly offset by acceleration of investment in go-to-market, digital and R&D.

The Group reported a net profit of 58.7 million euro, a significant improvement from the net loss of 31.9 million euro recorded in H1 2024. The Group adjusted net profit reached 38.6 million euro, up from 29.2 million euro in the same period last year.

The Group adjusted net profit is the result for the period attributable to the Group before adjustments on operating and financial income (expense), before the relevant taxation effect and before other positive/negative tax adjustments for the period.

Free cash flow in the period amounted to -14.1 million euro, versus -23.9 million euro for H1 2024. The improvement was mainly due to higher EBITDA and continuing efforts on net working capital management partly offset by increased CapEx, as planned.

Net Financial Indebtedness at the end of the period (calculated according to ESMA 32-382-1138 guidelines) went from 602.7 million euro at 31 December 2024 to 679.8 million euro, mainly due to negative free cash flow, distribution to shareholders and cash-out for acquisitions.

For comparative purposes, applying the calculation method used before the adoption of ESMA guidelines, net financial indebtedness went from 579.1 to 653.7 million euro. The main differences are ESMA's inclusion – among liabilities – of put & call options related to acquisitions, and the neutralization of positive mark-to-market from derivatives.

* * * * *

The half-year report is available in electronic format at the authorized repository and on the corporate website www.aristongroup.com in the "Investors" section. It has been prepared in accordance with the Dutch Civil Code and the applicable International Financial Reporting Standards (IFRS), is not subject to auditing and is not published in ESEF format.

The H1 2025 Analyst Presentation, which includes management's outlook on the remaining part of the year, will be made available at the authorized repository and on the website www.aristongroup.com in the "Investors" section.

A conference call dedicated to financial analysts and investment professionals will be held today at 15:00 CEST; you can join it here: Registration | H1 2025 Results

CONTACTS

www.aristongroup.com

Investor Relations

investor.relations@ariston.com

Corporate Communication

corporate.communication@ariston.com

Media Relations

Barabino & Partners barabino.ariston@barabino.it

About Ariston Group

Ariston Group (Bloomberg: ARIS IM) is a global leader in sustainable climate and water comfort, listed on Euronext Milan. In 2024 the group reported 2.6 billion-euro revenues, with over 10,000 employees, direct presence in 40 countries in 5 continents, 29 production sites and 28 research and development centers. The group demonstrates its commitment to sustainability through renewable and high-efficiency solutions, including heating heat pumps, water heating heat pumps, hybrids, domestic ventilation, air handling, electric components and solar thermal systems, while continuously investing in technological innovation, digitalization and advanced connectivity solutions. The group operates under global strategic brands Ariston, Elco and Wolf, and brands such as Calorex, NTI, HTP, Chaffoteaux, Atag, Brink, Chromagen, Racold, as well as Thermowatt and Ecoflam in the components and burners business.

Alternative Performance Measures (APMs)

This document contains certain financial performance measures that are not defined in IFRS standards (non-GAAP measures). These measures comply with the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority ('ESMA') in its communication ESMA/2015/1415. For a full presentation and discussion of alternative performance measures, please refer to chapter 4.11 "Definition and reconciliation of the Alternative Performance Measures (APMs or non GAAP measures) to GAAP measures" in the half-year report.

Forward-looking statements

This announcement may contain certain forward-looking statements, estimates and forecasts reflecting management's current views with respect to certain future events. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding the Group's future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where the Group operates or intends to operate. Forward-looking information is based on information available to the Group as of today and is based on certain key assumptions; as such, forward-looking statements speak only as of the date of this announcement. No assurance can be given that such future results will be achieved; actual events may materially differ as a result of risks and uncertainties faced by the Group, which could cause actual result to vary materially from the future results indicated, expressed or implied in such forward-looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forwardlooking statements as a prediction of actual results. Except as required by applicable laws and regulations, the Group expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in its expectations or any change in events, conditions or circumstances on which such statements are based; the Group expressly disclaims and does not assume any liability in connection with any inaccuracies in any of the forward-looking statements in this document, and in any related oral presentation, including responses to questions following the presentation, or in connection with any use by any third party. Further information on the Group and its activities, including those factors that may materially influence its financial results, are contained in the reports and documents of the Group deposited with the AFM and CONSOB.

Attachments:

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2025

CONSOLIDATED H1 2025 INCOME STATEMENT

CONSOLIDATED H1 2025 CASH FLOW STATEMENT

Attachments note: in H1 2025 Ariston Thermo Rus LLC reconsolidated from end-March while in H1 2024 Ariston Thermo Rus LLC was deconsolidated from end-April.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

(in million €)	At June 30, 2025	At December 31, 2024
Assets
NON-CURRENT ASSETS
Intangible assets
Goodwill	889.4	897.8
Other intangible assets	600.2	603.4
Total intangible assets	1,489.6	1,501.2
Property, plant and equipment
Land and buildings excluding ROU	217.0	203.0
Land and buildings ROU	54.2	60.9
Land and buildings	271.1	264.0
Plant and machinery excluding ROU	161.9	158.2
Plant and machinery ROU	1.0	1.1
Plant and machinery	163.0	159.2
Other property, plant and equipment excluding ROU	161.3	187.1
Other property, plant and equipment ROU	39.1	38.2
Other property, plant and equipment	200.3	225.3
Total property, plant and equipment	634.4	648.5
Investments in associates & Joint ventures	8.3	5.1
Deferred tax assets	124.6	122.1
Financial assets	2.6	5.1
Other non-current assets	6.7	7.0
Non-current tax receivables	1.1	1.0
Total non-current assets	2,267.3	2,290.2
CURRENT ASSETS Inventories	519.4	470.4
Trade receivables	350.3	333.9
Tax receivables	39.4	39.9
Current financial assets	17.5	18.4
Other current assets	64.0	62.8
Cash and cash equivalents	216.7	350.8
Total current assets	1,207.1	1,276.1
ASSETS HELD FOR SALE	0.3	0.3
TOTAL ASSETS	3,474.8	3,566.5

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

(in million €)	At June 30, 2025	At December 31, 2024
Liabilities and Equity
NET EQUITY
Share capital	46.5	46.5
Share premium reserve	711.3	711.3
Retained earnings and other reserves	608.3	665.5
Net profit attributable to the Group	58.7	2.5
Net equity attributable to the Group	1,424.8	1,425.8
Non-controlling interests and reserves	-1.1	-0.5
Net profit attributable to non-controlling interests	0.3	-0.2
Net equity attributable to non-controlling interests	-0.7	-0.7
Net equity	1,424.1	1,425.1
NON-CURRENT LIABILITIES
Deferred tax liabilities	207.0	208.7
Non-current provisions	67.1	69.6
Post-employment benefits	82.6	85.0
Non-current financing	747.0	800.1
Other non-current liabilities	8.5	24.0
Non-current tax liabilities	1.2	3.9
Total non-current liabilities	1,113.5	1,191.2
CURRENT LIABILITIES
Trade payables	457.4	444.2
Tax payables	42.8	53.4
Current provisions	65.5	62.8
Current financial liabilities	42.5	46.8
Current loans	98.4	101.3
Other current liabilities	230.6	241.9
Total current liabilities	937.2	950.2
LIABILITIES DIRECTLY ASSOCIATED WITH THE ASSETS HELD FOR SALE	0.0	0.0
TOTAL LIABILITIES AND NET EQUITY	3,474.8	3,566.5

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

(in million €)		For the six months ended June 30, 2025		For the six months ended June 30, 2024
	REVENUE AND INCOME
	Net revenue	1,291.8	100.0%	1,274.4	100.0%
	Other revenue and income	12.4	1.0%	27.1	2.1%
	Revenue and Income	1,304.2	101.0%	1,301.6	102.1%
	OPERATING EXPENSES
	Change in inventories	-23.9	-1.9%	19.9	1.6%
	Raw materials, consumables and goods for resale	601.8	46.6%	561.6	44.1%
	Services	240.0	18.6%	234.4	18.4%
	Personnel	331.9	25.7%	339.5	26.6%
	Depreciation and amortisation	68.9	5.3%	68.0	5.3%
	Additions and release of provisions	25.4	2.0%	28.7	2.3%
	Write-downs of Intangible Assets and PPE	0.3	0.0%	0.2	0.0%
	Other operating expenses	11.9	0.9%	52.8	4.1%
	Gain on bargain purchase	-41.3	-3.2%	0.0	0.0%
	Operating expenses	1,215.0	94.1%	1,305.1	102.4%
	OPERATING PROFIT (EBIT)	89.2	6.9%	-3.6	-0.3%
	FINANCIAL INCOME AND EXPENSE
	Financial Income	3.5	0.3%	5.7	0.4%
	Financial Expense	-21.3	-1.6%	-24.4	-1.9%
	Exchange rate gains/losses	-0.1	0.0%	-6.7	-0.5%
	Financial Income and Expense	-17.9	-1.4%	-25.4	-2.0%
	PROFIT (LOSS) ON INVESTMENTS
	Profit (loss) on investments	-3.6	-0.3%		0.0%
				0.0
	PROFIT BEFORE TAX	67.7	5.2%	-29.0	-2.3%
	TAXES	8.6	0.7%	3.0	0.2%
	PROFIT (LOSS) FROM CONTINUING OPERATIONS	59.1	4.6%	-32.0	-2.5%
	NET PROFIT	59.1	4.6%	-32.0	-2.5%
	Net profit attributable to non-controlling Interests	0.3	0.0%	-0.1	-0.1%
	Net profit attributable to the Group	58.7	4.5%	-31.9	-2.5%
	Basic earnings per share (€)	0.16		-0.09
	Diluted earnings per share (€)	0.16		-0.09

CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)

	(in million €)
--	----------------	--

1	CASH FLOW FROM OPERATING ACTIVITIES NET PROFIT	59.1	-32.0
2	- Taxes	8.6	3.0
3	- Income and expense from financing and investment activities	21.5	25.4
4	- Depreciation and amortisation excluding ROU	52.1	52.5
5	- Depreciation ROU	16.8	15.5
6	- Provisions	25.4	28.7
7	- Other adjustments	0.3	0.2
8	= GROSS OPERATING CASH FLOW (+1+2+3+4+5+6+7)	183.9	93.3
9	- Change in trade receivables	-11.9	15.0
10	- Change in inventories	-24.3	21.6
11	- Change in trade payables	-7.3	-87.6
12	- Change in other short-term assets/liabilities	-44.7	35.9
13	- Change in provisions	-32.2	-30.5
14	- Tax paid	-21.7	-19.2
15	= NET OPERATING CASH FLOW (+8+9+10+11+12+13+14)	41.8	28.5
	CASH FLOW FROM INVESTMENT ACTIVITIES
16	- Investments in intangible assets	-14.0	-11.3
17	- Investments in property, plant and equipment (PPE)	-24.1	-16.9
18	- Business combinations	-6.4	-19.9
19	- Investments in financial assets	-10.4	-2.8
20	- Change in the scope of consolidation	2.6	0.7
21	- Proceeds from sale of intangible assets and PPE	0.2	0.4
22	- Interest received	2.2	11.7
23	= CASH FLOW FROM INVESTMENT ACTIVITIES (+16+17+18+19+20+21+22)	-49.9	-38.1
	CASH FLOW FROM FINANCING ACTIVITIES
24	- Financial expense paid	-19.3	-27.3
25	- Financial expense pursuant to IFRS16	-1.9	-1.7
26	- Other inflows (outflows) of cash classified as financing activities	0.6	1.1
27	- Increase/decrease in short-term financial payables	-8.6	-20.7
28	- New loans	8.2	-0.3
29	- Loans repayment	-66.6	-75.9
30	- Distribution payment/Dividends	-29.5	-63.1
31	- Capital and reserves increase/distribution	0.0	0.0
32	- Proceeds from issue of ordinary shares	0.0	0.0
33	- Buyback/sale of treasury shares	0.0	0.0
34	= CASH FLOW FROM FINANCING ACTIVITIES (24 to 33)	-117.1	-187.9
35	= CASH FLOW FROM CONTINUING OPERATIONS (15+23+34)	-125.2	-197.6
36	CASH FLOW FROM DISCONTINUED OPERATIONS	0.0	0.0
37	= TOTAL CASH FLOW (35+36)	-125.2	-197.6
38	Effect of changes in exchange rates	-8.7	-1.5
39	= TOTAL MOVEMENT IN CASH AND CASH EQUIVALENTS (37+38)	-133.9	-199.1
40	CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	345.2	440.0
41	CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (39+40)	211.3	240.9

For the	For the
six	six
months	months
ended	ended
June	June
30,	30,
2025	2024

-8.7	-1.5
	-199.1
-133.9
345.2	440.0