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Geberit expects European construction stabilisation in 2025, after posting higher sales

Geberit, a building materials supplier, reported on Tuesday a nearly 5-percent increase in sales for its first quarter. It also said that it expected the European construction industry to "stabilise" in 2025 despite an uncertain economic environment.

According to a poll conducted by AWP, Geberit is a manufacturer of toilets, bathroom tiles and piping. The company reported sales of 878.5 millions Swiss francs for the third quarter. This was up 4.9% compared to a year ago and higher than analysts' expectations, which were 869 million francs.

Geberit first-quarter sales, measured in local currency, rose 5.3% on an annual basis.

The company reported a core income (EBITDA), of 276.9 millions Swiss francs, for the third quarter. This is a 0.7% rise from a year ago, but still slightly below the 280million francs that was expected by the AWP analysts poll.

Geberit’s core profit increased 1.5% after currency effects were adjusted, when compared to the same period in last year.

Geberit results are indicative of the health of the construction industry as its products are widely used for both new constructions and renovations.

Geberit said that it would continue to refrain from providing a detailed outlook for the full year but did not expect any changes in its forecast, which was shared with its results for the full year in March.

The company stated that the announcement of additional U.S. Tariffs could negatively impact the economic development of the USA as well as the global economy.

The company had predicted that the demand for building construction would'stabilise' by 2025. It also received a boost in sentiment from the German Infrastructure Fund.

(source: Reuters)