- Strong Financial Performance: 23% sales growth (local currency), 29% EBIT growth, and 36% RoCE, with CHF 1.12 billion turnover and CHF 10/share dividend proposed.
- Data Center Vertical Growth: 17% of total sales, driven by liquid cooling adoption and retrofitting, with 60-70% of new data centers adopting liquid cooling.
- Strategic Capacity Expansion: U.S. footprint to triple, local assembly increased from 30% to 60%, and CHF 69 million net liquidity supports investment in growth initiatives.
- Market Leadership in HVAC: 13.8% CAGR over 5 years, outpacing 9-11% target, with 23% local currency sales growth and 20.8% EBIT margin in 2025.
- Long-Term Vision & ESG Focus: Building Tomorrow strategy aligns with urbanization and climate change, reducing CO2 emissions via energy-efficient HVAC solutions and RetroFIT+ program (30% YOY growth in converted projects).
Regional Breakdown and Data Center Business
The Americas contributed 50% of sales, EMEA 38%, and Asia Pacific 13%. The data center business accounted for 17% of total sales, significantly contributing to overall growth. BELIMO's data center organization has been instrumental in driving this growth, with a focus on owner engagement and participation in research organizations to stay ahead of future application needs.
Growth Strategy and Investments
BELIMO's growth strategy is built around three megatrends: urbanization, climate change, and data centers. The company has invested heavily in capacity expansion, following an asset-light model, and is on track with its Nexus building project in Hinwil. The digital generation platform is a key component of this strategy, offering flexibility, scalability, and consistency in product design and handling.
Valuation and Outlook
With a P/E Ratio of 58.82 and an ROE of 30.41%, the market has priced in significant growth expectations. BELIMO's guidance for 2026 includes mid-teens percentage sales growth in local currencies and an EBIT margin above 20%. The company's strong competitive advantage in the data center market, coupled with its investments in growth initiatives, positions it well for continued success.
Data Center Trends and Retrofit Opportunities
The shift towards liquid cooling in data centers presents a significant opportunity for BELIMO, with about 60-70% of newly planned buildings expected to adopt this technology. The company's products typically last 20-30 years, leading to a higher retrofit rate in this segment. As Lars van der Haegen noted, there are many investments happening in the market, but constraining factors like energy and supply chain issues may impact deployment rates.