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1. Company Snapshot

1.a. Company Description

Zumtobel Group AG operates in the lighting industry worldwide.The company operates through two segments, Lighting and Components.It offers a range of products and services, including light management systems, components, and luminaires, as well as professional solutions for indoor and outdoor lighting applications.


The company also provides hardware and software for lighting systems, such as LED light sources, LED drivers, and sensors, as well as lighting systems management; and light contracting, design, and data-based services, as well as project management for turnkey lighting solutions.It offers its products under the Zumtobel, Thorn, Tridonic, and acdc brands.The company was formerly known as Zumtobel AG and changed its name to Zumtobel Group AG in September 2014.


Zumtobel Group AG was founded in 1950 and is headquartered in Dornbirn, Austria.

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1.b. Last Insights on ZAG

The Zumtoble Group AG's recent performance was impacted by a sluggish market environment, particularly in the lighting industry. A recent market research report forecasts a decline in demand for traditional lighting solutions, including fluorescent lighting, as the market shifts towards more energy-efficient options. Moreover, intense competition from key players such as Signify Holding and Fagerhult may have affected Zumtoble's sales. Additionally, the company's most recent earnings release showed a decline in revenue, which may have been attributed to a challenging business environment.

1.c. Company Highlights

2. Zumtobel Group's Q1 2025-26 Earnings: Challenges and Strategic Moves

Zumtobel Group reported a revenue decline of 7.8% to EUR 266 million, with the Lighting segment at EUR 210 million (-7%) and Components at EUR 70 million (-12%). Adjusted EBIT dropped to EUR 6.6 million, representing a 2.5% margin. Earnings per share (EPS) was -EUR 0.09, with a net profit of -EUR 4 million. The company's financial performance was impacted by weak demand in European new construction and geopolitical risks.

Publication Date: Sep -20

📋 Highlights
  • Revenue Decline: Tridonic's Q1 revenue fell 7.8% to EUR 266 million, driven by weak demand in Europe and Asia Pacific.
  • EBIT Margin Pressure: Adjusted EBIT dropped to EUR 6.6 million (2.5% margin), impacted by fixed costs and U.S. market challenges.
  • Restructuring Plan: Closure of the U.S. production site and a EUR 30–40 million annual cost-saving initiative by FY 2028–29, with single-digit million restructuring costs.
  • Market Outlook: Early signs of recovery in European nonresidential construction, with DACH region growth expected mid-2026 and AI/data center projects gaining traction.
  • Balance Sheet: Net debt rose to EUR 134.4 million, free cash flow at -EUR 10.6 million, and equity ratio maintained at 41.9%.

Financial Highlights

The adjusted EBIT margin for the Lighting segment was 5.4%, while the Components segment reported a margin of 1.9%. Cash flow from operations was EUR 1.3 million, with free cash flow at -EUR 10.6 million. Net debt increased to EUR 134.4 million, although the equity ratio remained stable at 41.9%. According to Thomas Erath, "Group adjusted EBIT totaled EUR 6.6 million (2.5% margin)."

Strategic Initiatives

Zumtobel Group is implementing cost-saving measures under its Focus+ strategy, aiming to save EUR 30-40 million by FY 2028-29. The company is closing its U.S. production site in Highline, NY, and shifting U.S. sales to its global networks. Restructuring costs are expected to be in the single-digit million range annually.

Valuation Metrics

The current P/E Ratio is -140.96, indicating potential undervaluation. The P/S Ratio is 0.16, and EV/EBITDA is 4.63. The company's ROE is -0.29%, and ROIC is 1.18%. These metrics suggest that Zumtobel Group is currently facing challenges, but its strategic initiatives aim to drive future growth.

Market Outlook

Early recovery signs are visible in European non-residential construction, particularly in education and healthcare. The DACH region is expected to experience modest recovery by mid-2026. Alfred Felder noted that "strategic priorities include resilience, cost optimization, and positioning for long-term growth in renovation markets."

3. NewsRoom

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Zumtobel Group AG (WBO:ZAG) Half Year 2026 Earnings Call Highlights: Navigating Challenges with ...

Dec -04

Source:

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[Latest] Global Fluorescent Lighting Market Size/Share Worth USD 19.48 Billion by 2034 at a 9.6% CAGR: Custom Market Insights (Analysis, Outlook, Leaders, Report, Trends, Forecast, Segmentation, Growth Rate, Value, SWOT Analysis)

Oct -14

Source:

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Zumtobel Group AG (WBO:ZAG) Full Year 2025 Earnings Call Highlights: Navigating Challenges with ...

Jul -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.90%)

6. Segments

Lighting

Expected Growth: 1.8%

Zumtobel Group AG's 1.8% growth in Lighting segment is driven by increasing demand for energy-efficient solutions, rising adoption of smart lighting systems, and growing investments in infrastructure development. Additionally, the company's focus on innovative products and strategic acquisitions have contributed to its growth momentum.

Components

Expected Growth: 2.2%

Zumtobel Group AG's 2.2% growth is driven by increasing demand for energy-efficient lighting solutions, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on innovative products and services, such as smart lighting systems, contributes to its growth momentum.

7. Detailed Products

Luminaires

Zumtobel Group AG offers a wide range of luminaires for various applications, including office, industry, and retail spaces.

Light Management Systems

The company's light management systems enable efficient and flexible lighting control, including sensors, controllers, and software.

Emergency Lighting

Zumtobel Group AG's emergency lighting products ensure safe evacuation in case of an emergency, meeting international safety standards.

Acoustic Lighting

The company's acoustic lighting solutions combine lighting and acoustic functionality, enhancing the ambiance and comfort of interior spaces.

Outdoor Lighting

Zumtobel Group AG's outdoor lighting products are designed for urban and architectural lighting applications, including streets, parks, and public spaces.

Services

The company offers a range of services, including lighting design, planning, and maintenance, to support customers throughout the entire lighting lifecycle.

8. Zumtobel Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Zumtobel Group AG is medium, as there are alternative lighting solutions available in the market, but the company's strong brand reputation and product offerings mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers for Zumtobel Group AG is low, as the company operates in a niche market with a strong brand presence, and customers have limited bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Zumtobel Group AG is medium, as the company relies on a few key suppliers for raw materials, but has some flexibility to negotiate prices and terms.

Threat Of New Entrants

The threat of new entrants for Zumtobel Group AG is low, as the company has a strong brand presence and significant barriers to entry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Zumtobel Group AG is high, as the company operates in a competitive market with several established players, and must continually innovate and differentiate its products to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.97%
Debt Cost 8.12%
Equity Weight 74.03%
Equity Cost 9.04%
WACC 8.80%
Leverage 35.08%

11. Quality Control: Zumtobel Group AG passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AQ Group

A-Score: 5.4/10

Value: 2.9

Growth: 8.1

Quality: 6.9

Yield: 1.2

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
FW Thorpe

A-Score: 5.3/10

Value: 5.9

Growth: 7.2

Quality: 8.0

Yield: 2.5

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Zumtobel

A-Score: 4.6/10

Value: 9.5

Growth: 2.8

Quality: 2.7

Yield: 3.8

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Volex

A-Score: 4.4/10

Value: 4.6

Growth: 6.9

Quality: 4.8

Yield: 1.2

Momentum: 6.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Fagerhult

A-Score: 3.5/10

Value: 4.7

Growth: 3.4

Quality: 4.1

Yield: 3.8

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
LEM Holding

A-Score: 1.9/10

Value: 1.6

Growth: 1.4

Quality: 3.0

Yield: 3.1

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.61$

Current Price

3.62$

Potential

-0.00%

Expected Cash-Flows