Austrian lighting group Zumtobel reported first-quarter results for fiscal 2026/27 on September 3, showing margin expansion despite flat revenues.
Group revenues fell 0.9% to €264.1 million, or 1.4% on a currency-adjusted basis, as the lighting segment—which accounts for about 80% of sales—held steady with a 0.2% increase. Adjusted EBIT rose 25% to €8.2 million, lifting the adjusted EBIT margin to 3.1% from 2.5% a year earlier. Net profit turned positive at €4.2 million, compared with a €4.0 million loss in the prior-year quarter, while earnings per share reached €0.11 versus a €0.09 loss previously.
Cost discipline supported the performance. Adjusted gross profit margin expanded by 70 basis points to 37.4%, while adjusted cost of goods sold declined 2% to €165.2 million. Adjusted SG&A expenses decreased 0.7% to €90.7 million. The components segment saw revenues fall 4.8% to €67.5 million, though adjusted EBIT remained broadly stable at €1.4 million.
Cash flow from operating activities turned negative at €4.2 million, driven by working capital changes totaling €13.6 million, while free cash flow was negative €16.4 million. Net debt rose to €148.1 million from €128.5 million at the end of fiscal 2025/26, leaving a debt coverage ratio of 1.64, below the 3.55 covenant threshold. The equity ratio stood at 43%, above the minimum requirement of 23.5%.
Regional performance was mixed. The D/A/CH region, Zumtobel’s largest market, declined 5.0% to €101.9 million, while Asia & Pacific surged 14.6% to €19.4 million and the Americas & MEA jumped 19.8% to €12.9 million. Northern and Western Europe grew 2.5% to €62.8 million, while Southern and Eastern Europe fell 4.4% to €67.1 million.
Management guided fiscal 2026/27 revenues to be in line with the prior year, implying around €1.04 billion. Adjusted EBIT margin is expected between 3% and 5%, equating to €31 million to €52 million. The company plans capital expenditure of about €50 million and aims to generate €7 million to €10 million in additional annual savings through an efficiency program. Incoming CEO Heiner Lang will assume the role on October 1, 2026, following a listening tour to inform future strategy.
The group also highlighted progress in data center projects, securing two Nordic contracts and advancing power conversion technology with key customers, which it views as a potential source of recurring revenue through long-term service agreements.
