Capitalizing on Strong Growth Momentum

Dear Shareholders,

Belimo proudly celebrates its 50^th anniversary — marking half a century of innovation, growth, sustainability and team spirit. The strategic and financial results achieved in the first half of 2025 underscore the successful journey of a company, which today is both the market and innovation leader in field devices for the heating, ventilation, and air-conditioning (HVAC) applications.

This success is rooted in a strong company culture and highly engaged employees who consistently deliver greater customer value. Recently, this was recognized by the Financial Times, ranking Belimo 7^th among 1 000 companies in its “Europe’s Best Employers” list.

The strong strategic and financial results achieved in the first half of 2025 are a testament to Belimo’s continued momentum. They underscore the success of a company that not only drives performance and efficiency in buildings worldwide, but also helps shape the future of smart, sustainable infrastructure.

Belimo’s net sales rose 20.6% in local currencies and 18.6% in Swiss francs to CHF 561.5 million in the reporting period. With this performance, it surpassed projections across all market regions. Consequently, operating leverage combined with a favorable product and customer mix resulted in earnings before interest and taxes (EBIT) exceeding the target corridor.

The Americas market region posted outstanding results, fueled by a favorable business environment, strong data center business and the successful rollout of Belimo’s next-generation cooling solutions for high-end servers in data centers. In this rapidly expanding sector, Belimo has established itself as a key provider of field devices that help secure reliable operations while improving energy efficiency.

This upward drive was mirrored in China, where data center demand remained a major catalyst. Meanwhile, India delivered substantial results particularly in the data centers and in the general HVAC markets. These two countries considerably helped Belimo surpass expectations in the Asia Pacific region.

In the EMEA market region, sales growth was ahead of prior-year levels, driven by an improving original equipment manufacturer (OEM) business, as well as a substantial push in the RetroFIT+ project pipeline, despite ongoing weakness in the broader new non-residential construction market.

Net Sales by Market Region

The Control Valves and the Damper Actuators' business lines reported substantial net sales growth on a year-on-year basis. Both benefited considerably from accelerating data center deployment in all market regions. Control Valves achieved a 23.3% revenue increase in local currencies, further reaffirming Belimo’s position as an innovation leader. In parallel, sales for Damper Actuators reached an increase of 18.1% in local currencies. Similarly, Sensors and Meters continued to gain traction, recording an increase of 16.3% in local currencies.

Net Sales by Business Line

Financials

EBIT rose to CHF 128.1 million in the first half of 2025 (first half of 2024: CHF 93.0 million), resulting in an increased EBIT margin of 22.8% (first half of 2024: 19.6%). Belimo achieved a net income of CHF 101.3 million (first half of 2024: CHF 77.2 million) and earnings per share of CHF 8.23 (first half of 2024: CHF 6.28).

The Group generated a free cash flow (without term deposits) of CHF 52.8 million (first half of 2024: CHF 69.8 million), despite an increased CAPEX of CHF 35.9 million in conjunction with Belimo’s capacity expansion program (first half of 2024: CHF 14.4 million). Net liquidity at the end of June 2025 was at CHF 49.9 million, and the equity ratio was 71.9%.

EMEA

In the EMEA market region, Belimo’s net sales of CHF 216.3 million mark a rise of 9.9% in local currencies (8.3% in Swiss francs) compared to the first half of 2024.

Belimo outperformed the commercial construction sector across all key EMEA markets, despite persistent economic headwinds. Ongoing strength in renovation activity further supported development in the retrofit business.

Alongside superior service levels, the RetroFIT+ initiative was one of the main drivers for Belimo leading to a slight increase in the market share in damper actuators and control valves, although fewer large projects were available in Western Europe.

In Germany, construction spending gradually recovered after four years of decline, although companies remained cautious amid political uncertainty and trade tensions. Despite this, Belimo delivered solid results, supported by an uptick in smaller contracting and retrofit projects, as well as a rebound in the OEM boiler and heat pump segment. A strong OEM order intake also bolstered performance in Austria and Eastern Europe, driven by increased demand for biomass ovens, and fire & smoke damper applications. In the UK and Ireland, rising real construction spending contributed to robust expansion, further supported by data center orders.

Americas

The Americas market region was Belimo’s main growth driver in the first half of 2025, with net sales reaching CHF 280.0 million — an increase of 30.1% in local currencies (27.7% in Swiss francs) compared to the prior year.

Belimo capitalized on the favorable HVAC market, leveraging a supporting investment climate and resilient demand, particularly in the United States and Canada.

Belimo secured a substantial market share in the data center vertical. Demand from this sector is becoming a major growth engine in the region. Spring-return (Failsafe) actuators used for airside cooling applications considerably supported the damper actuator growth. Belimo’s control valve offering gained substantial traction, performing well above expectations. As a key partner to leading chip designers and data center hyperscalers, Belimo is well-positioned to benefit from the strong growing liquid cooling market.

Key OEM accounts were instrumental in driving growth, backed by Belimo’s strong supply chain performance and leadership in high-end applications. The contracting channel also recorded notable results.

Reshoring trends persisted, while Belimo’s traditional verticals — including government facilities, educational institutions, hospitals, and pharmaceutical sites — continued to deliver solid performance.

Asia Pacific

The Asia Pacific market region reported CHF 65.3 million in sales in the first half of 2025, corresponding to an increase of 21.3% in local currencies (19.3% in Swiss francs) compared to prior year. The region sustained a sharp growth trajectory in a complex, fast-evolving market environment, with data center activity, energy efficiency projects, and the Business Line Sensors and Meters serving as major growth drivers.

Belimo recorded particularly dynamic performance in China and India. In China, despite an overall weak construction market, business outpaced expectations, assisted by robust demand across several high-potential verticals — including data centers, semiconductors and electronic factories. Further drivers were multiple large-scale projects and demand for control valves. The recovery of the contracting business complemented the increase in OEM sales and contributed to the broad-based improvement across business lines.

India also delivered high growth, driven by rising demand in district energy, data center, high-rise residential, and semiconductor production verticals. OEM customers were the primary growth contributors, backed by increased adoption of electronic pressure-independent valves and butterfly valves. The surge of green certified buildings, due to continued governmental incentives for green technologies and energy-efficient HVAC solutions, drove market growth in all verticals.

Strategy Execution and Innovation Update

The Group’s long-term strategy consists of the following six initiatives aimed at increasing customer value and advancing solution leadership.

During the first half of 2025, Belimo advanced its strategic RetroFIT+ initiative, which continued to build momentum. Application consultants and partners identified an increasing number of opportunities, achieving a strong conversion rate from leads to active projects. The primary focus during this timeframe was onboarding new RetroFIT+ partners and strengthening their ability to identify and capture retrofit potential. Looking ahead, Belimo plans to further enhance the RetroFIT+ Assessment Tool, launched in 2024, by investing in the expansion of its partner network to scale impact.

Belimo also reinforced its presence in the Asia Pacific region through the Grow Asia Pacific initiative, which targets selected high-growth markets and verticals. A milestone was reached with the inauguration of the new China headquarters in Shanghai. Known as the CESIM House, the facility includes modern office spaces, a state-of-the-art logistics hub serving the Chinese market, and an advanced customer experience center. Designed to reflect Belimo’s sustainability values, the building achieved both China Three Star Green Building and LEED Platinum certifications.

The reporting period also marked the launch of Data Centers as a formal strategic pillar. Following the successful expansion of the Global Data Center Team, Belimo is now well-positioned to deliver tailored value to customers. The first half of the year saw notable double-digit growth, with data center sales rising by over 50% and continuing to accelerate in the final months of the period. Building on this, Belimo is advancing its product roadmap for data centers.

The Actuators and Valves initiative achieved strong results, with substantial sales growth highlighting its success. A milestone was the introduction of the GM actuator — the first product from Belimo’s modular platform and part of its Digital Generation — initially launched in Italy as a pilot market, with a global rollout scheduled for the second half of the year. This launch marks the start of a multi-year renewal of the product portfolio, featuring modular design, enhanced connectivity, and consistent user experience.

Under the Sensors and Meters initiative, sales continued to grow at a strong pace, reinforcing Belimo’s position in this rapidly expanding segment. In May, the Company launched its enhanced room sensor offering, with additional connectivity and integrated CO₂ logging for indoor air quality monitoring. Efforts during this period also focused on preparing for the launch of a new range of differential air pressure sensors, typically applied in filter monitoring applications. Scheduled for release in the second half of the year, this marks a milestone in the uniqueness of Belimo’s Sensor Portfolio.

As part of the Digital Ecosystem initiative, Belimo advanced its digital toolkit to unlock new efficiency levers in a mission to enhance customer value. Development of the new digital platforms — including onboard software and the next-generation tool suite — progressed as planned, targeting improved usability for system integrators and contractors. A highlight was the release of the latest version of Belimo Assistant 2, featuring improved functionality and a more intuitive user experience. The App won the Best of Swiss Apps 2024 Silver Award in the category Innovation. Additionally, the launch of the Belimo Assistant Link provided a flexible interface that simplifies device connectivity, notably streamlining installation and commissioning processes across diverse project environments.

Outlook

By maintaining a strategic focus on high-potential verticals and achieving strong progress in the data center and RetroFIT+ initiatives, Belimo continued to drive regional performance in the first half of 2025.

In line with the expectations communicated in April, the Company confirms its full-year 2025 outlook, projecting sales growth in local currencies of 15% to 20%. Based on current spot exchange rates, the EBIT margin is expected to remain above 20% for the full year. These projections remain subject to considerable external uncertainty, including potential disruptions to global economic growth or exchange rate developments.

With a strong focus on customer value and a culture that fosters employee engagement, Belimo continues to deliver industry-leading service — clearly setting itself apart from competitors. Structural drivers such as urbanization, the push for energy efficiency — which lowers CO₂ emissions and operating costs — along with rising attention to indoor air quality, continue to drive demand across all regions. Building on strong regional performance in the first half of 2025, the Group will advance its long-term strategy through continued investment in innovation, digitalization, as well as capacity expansion.

On behalf of the Board of Directors and the Executive Committee, we thank all stakeholders — customers, partners, employees, and shareholders — for their continued trust and contribution to Belimo’s sustained success.

BELIMO Holding AG