Building Momentum

Belimo achieved strong results, consistently executing its growth strategy and leveraging opportunities in data centers and building renovation

In 2024, Belimo achieved yet again new record revenues of CHF 943.9 million while further expanding its operating profit margin to 19.2% of net sales. This exceptional top- and bottom-line performance, despite challenging market conditions in some key regions, such as Germany in EMEA and China in Asia Pacific, highlights the strength of Belimo's innovative solutions, fast and reliable lead times, and enduring customer and supplier partnerships.

Belimo's alignment with key growth megatrends remains a cornerstone of its success. These trends include energy efficiency, urbanization, and digitalization — including data centers and the increasing proliferation of Artificial Intelligence (AI) applications. Furthermore, the pressing need to accelerate building renovations and improve indoor air quality standards significantly contributed to our achievements in 2024. Both these key demand drivers — the data center vertical and the renovation market — fueled sequential growth momentum in net sales and project volumes throughout the year.

Overall, Belimo generated net sales growth of 13.1% in local currencies and 9.9% to CHF 943.9 million in Swiss francs in 2024. The double-digit revenue growth was driven by volume recovery, strong product and customer mix contribution, and positive pricing effects, which more than offset negative foreign exchange impacts.

Supported by an overall positive market environment, the Americas market region achieved sales growth of 19.8% in local currencies. This success builds on an extraordinary sequence of years during which Belimo gained significant market share and solidified its reputation as a key partner in high-end, demanding applications — not only in its traditional business but also among leading chip designers. By contributing to the design and commercialization of next-generation data center cooling solutions with innovative mission-critical components, Belimo has further strengthened its market position. The Americas region has now become Belimo’s largest in terms of absolute revenue contribution, reaffirming its pivotal role as a driver of the company’s overall performance.

EMEA achieved solid sales growth of 5.9% in local currencies. This performance, however, remained influenced by a generally subdued market environment, particularly in new commercial construction and Germany.

The Asia Pacific market region performed strongly, with revenue momentum increasing sequentially into the second half of the year. This growth was driven by double-digit net sales increases in Belimo India and China, with the latter significantly outperforming the still challenging construction environment in the country.

Net Sales by Market Region

Building on a strong sequence of years, the Control Valves business line once again achieved significant market share gains, delivering robust growth of 15.4% in local currencies and reaffirming Belimo’s position as an innovation leader. Similarly, Sensors and Meters continued to gain traction, recording an impressive increase of 25.0% in local currencies.

While Damper Actuators experienced only modest growth of 9.7% in local currencies, the destocking phase among original equipment manufacturer (OEM) customers has now concluded. Belimo has begun to benefit from some recovery in volumes within its OEM channel, outperforming the overall subdued business momentum in the new construction industry in EMEA.

Net Sales by Business Line

Earnings before interest and taxes (EBIT) reached CHF 181.1 million in 2024, up from CHF 152.5 million in 2023. The EBIT margin improved by 1.4 percentage points to 19.2% from 17.8% in the previous year. The company welcomed 356 new colleagues, and invested CHF 58.7 million (6.2% of net sales) in capacity expansion projects (2023: CHF 38.3 million).

The Group achieved net income of CHF 146.7 million (2023: CHF 136.8 million). Earnings per share rose by 7.2% to CHF 11.94 (2023: CHF 11.14).

Operating cash flow amounted to CHF 194.8 million (2023: CHF 157.0 million), and free cash flow (w/o term deposits) increased by 19.8% to CHF 132.8 million (2023: CHF 110.9 million).

EMEA

The EMEA market region reported net sales of CHF 389.7 million in 2024, reflecting an increase of 5.9% in local currencies (3.7% in Swiss francs) compared to the previous year. This growth was driven by a combination of volume recovery, albeit from low levels, a favorable product mix, and the implementation of price increases.

Despite economic uncertainties impacting several key markets, including Germany, which experienced persistent subdued demand, Belimo demonstrated resilience. The company achieved positive revenue growth and outperformed the broader commercial construction industry across all key markets in the region. Belimo continued to grow strongly in Southern Europe.

An increased focus on achieving carbon reduction targets, particularly in industries such as ship cruises and industrial manufacturing, has contributed to positive momentum in the renovation market. Belimo's RetroFIT+ initiative gained further momentum, supported by dedicated digital product launches, such as the Belimo Assistant App 2, and a growing network of RetroFIT+ partners. Additionally, the healthcare facilities and data center verticals showed strong demand development, while projects in new construction have yet to exhibit significant signs of recovery.

Belimo’s pressure-independent valves performed very well, seeing an increase in demand stemming from, among other things, an increasing focus on energy savings and substantial progress in the OEM business with data centers. Initial modest recovery in volumes within its OEM channel and data center demand helped also to accelerate revenue growth in the Damper Actuators product line. Finally, Sensors and Meters performed at the highest growth rate according to expectations.

Americas

In a fundamentally supportive market environment, the Americas market region reported CHF 434.0 million in net sales in 2024, corresponding to an increase of 19.8% in local currencies (16.1% in Swiss francs) compared to the previous year. This strong growth was driven by robust volume development, a favorable product and customer mix, and the implementation of price increases.

The success in 2024 builds on an already extraordinary sequence of years during which the Americas market region grew strongly, gained significant market share, and solidified its reputation as a key partner in high-end demanding applications — not only in its traditional business but also among leading chip designers. By contributing to the design and commercialization of next-generation data center cooling solutions with our innovative and mission-critical components, Belimo has further strengthened its market position. The Americas market region has now become Belimo’s largest in terms of absolute revenue contribution, reaffirming its role as a key driver of the company’s overall performance.

In 2024, the positive activity trend was broad-based across most of the verticals in which Belimo operates. Demand in the data center market accelerated, driving sales in the OEM channel. The reshoring trend continued, and the company's traditional verticals, such as government buildings, schools, universities, and hospitals, also performed well. While demand in office buildings remained subdued, Belimo is seeing early signs of a potential revival, driven by the need to repurpose unused floor space.

Not only the Business Line (BL) Control Valves grew considerably, but also the BL Damper Actuators experienced strong growth compared with the previous year, driven by formidable volumes with OEM customers. The newest BL, Sensors and Meters, continued its growth trajectory by gaining market share and delivering high growth rates.

Asia Pacific

The Asia Pacific market region reported CHF 120.2 million in sales in 2024, corresponding to an increase of 14.6% in local currencies (10.2% in Swiss francs).

In China, low private consumption and a persistent correction in the real estate market created a challenging market backdrop, characterized by low investments, high price pressure, and reduced project budgets. Despite these difficulties, Belimo’s focus on high-growth verticals such as data centers, semiconductors, railway, and electronics factories enabled the company to achieve double-digit revenue growth in this environment compared to the prior year.

India’s heating, ventilation, and air-conditioning (HVAC) business continued to experience significant growth, driven by sectors such as data centers, infrastructure, pharmaceuticals, and hospitality. This growth was further supported by an increased emphasis on digitalization, energy efficiency, indoor air quality, and eco-friendly certified buildings.

The Southeast Asian market remained overall stable, although new construction ventures were hindered by high building material costs. The devaluation of local currencies against the USD has intensified price pressure in many countries. However, Belimo benefited from strong growth momentum in the data center vertical across several countries in the region.

Control Valves experienced strong growth in the Asia Pacific market region, driven by demand from data centers, particularly in China through the OEM channel, as well as in India and East Asia. The Damper Actuator business saw slower growth, especially in East Asia and China, due to a slowdown in new construction projects. Sensors and Meters sales grew at a very strong rate, particularly in India and China.

Outlook

While political changes in the global arena bring a high level of uncertainty, Belimo remains steadfast in executing its long-term strategy. In 2025, the Group anticipates ongoing demand for its field devices in both new construction and the renovation of existing structures, albeit with a further shift to renovation activities. Belimo expects demand in the data center market to accelerate further. However, the pace at which new AI technologies are adopted will depend on factors beyond Belimo's control. Net sales growth, measured in local currencies, is projected to exceed the five-year average slightly. Additionally, the EBIT margin is expected to remain within the communicated range between 18% and 20%. Potential negative impacts from foreign exchange fluctuations and high levels of research and development, along with ongoing investments in future advancements, should be offset by positive price realization, operational leverage, and a favorable product mix effect.

In the EMEA market region, Belimo anticipates that the mixed market environment in the new non-residential construction, including the still subdued German market seen in 2024, will worsen before improving towards the year-end and continue to negatively affect the industry throughout much of 2025. Despite this, Belimo is expected to outperform its market, supported by the benefits of the company's strategic initiatives, such as RetroFIT+ and Data Centers. The pipeline of RetroFIT+ projects built up a strong momentum throughout 2024, which gives the company confidence in achieving its 2025 targets for the EMEA market region.

In the Americas market region, momentum is expected to accelerate further in the data center market, albeit gradually. At the same time, broader demand from Belimo's traditional HVAC verticals is likely to remain strong. To support the sustained strong growth in the region, Belimo is once again expanding its Americas Headquarters in Danbury, CT. The enhanced US presence will help the company to reduce freight costs and greenhouse gas (GHG) emissions and improve flexibility amid geopolitical changes, such as tariffs. The project, starting this year and completing by early 2027, will automate storage, logistics, customization, and production. In 2025, Belimo will also launch and manufacture its new QR and YR Control Butterfly Valve actuators for high-performance applications, such as in data centers, further strengthening its position as the largest HVAC field device manufacturer in the US.

In the Asia Pacific market region, data center market growth is expected to be the strongest among all market regions over the coming years, including 2025. Additionally, Chinese stimulus measures will likely boost the market as of the second half 2025. Business in India is thriving and has promising prospects for 2025. In Southeast Asia, the Group anticipates robust HVAC market growth, aligned with higher GDP growth expectations.

As the market leader in energy-efficient HVAC field devices, Belimo is strongly positioned to capitalize on the discussed market trends. The ongoing digitalization, urbanization, and climate change trends fuel demand for more efficient cooling solutions, improved indoor air quality, and energy efficiency in buildings, offering prospects for growth outpacing general GDP trends. The Group remains committed to its long-term growth strategy, continuing to invest in strategic initiatives and expanding its capacity, mainly in the logistics area, leading to an elevated capital expenditures level continuing in 2025 and 2026 before leveling off closer to historical levels as of 2027.

Financial Key Performance Indicators

Double-digit net sales growth in local currencies, despite challenging market conditions, highlights the Group's ability to deliver on strategic growth initiatives. EBIT increased to CHF 181.1 million in 2024 , a notable increase from CHF 152.5 million in 2023. The expansion of the EBIT margin to 19.2% (2023: 17.8%) supported by strategic price adjustments, a favorable product mix, and the continued normalization of material costs, demonstrates the focus on operational efficiency. These measures overcompensated an overall higher cost base driven by the execution of long-term investments in line with our Group's strategy, coupled with a workforce increase of 101.7 FTEs (2023: +96.2 FTEs).

Net income rose to CHF 146.7 million in 2024, continuing its positive trajectory from CHF 136.8 million in 2023. Previous year's net income was positively impacted by one-time tax effects of CHF 17.1 million. These prior-year one-time effects were fully offset in the current year by the strong EBIT performance and the improved financial result. Earnings per share increased to CHF 11.94 (2023: CHF 11.14).

Cash flow from operating activities rose to CHF 194.8 million, an increase from CHF 157.0 million in the prior year. This growth highlights the company’s effectiveness to translate profitability into cash generation.

Free cash flow (w/o term deposits) totaled CHF 132.8 million (2023: CHF 110.9 million). Capital expenditures in property, plant and equipment and intangible assets amounted to CHF 63.1 million (2023: CHF 47.0 million), mainly containing investments in capacity expansion projects.

Total assets increased compared to previous year to CHF 763.7 million (2023: CHF 662.0 million). Property, plant and equipment grew from CHF 223.3 million to CHF 266.6 million, driven by the investments in capacity expansion. Net liquidity rose by CHF 13.8 million to CHF 111.8 million (2023: CHF 98.0 million), and net working capital rose by CHF 8.7 million to CHF 250.6 million (2023: CHF 241.9 million), reflecting the growth of the group.

The equity ratio remained at a very solid 76.0% (2023: 80.1%). Based on average equity, the return on equity (ROE) amounted to 26.4% (2023: 26.0%).

The Board of Directors is proposing a dividend of CHF 9.50 per share at the 2025 Annual General Meeting on March 24, 2025.

Strategy Execution and Innovation Update

The Group’s long-term growth strategy consists of the following six initiatives, which are geared toward increasing customer value and advancing solution leadership.

At the Capital Markets Day 2024, Belimo announced the launch of the new strategic initiative, Data Centers as of January 2025. Concurrently, the existing strategic initiative, Digital Customer Experience, has been transitioned to an operational initiative. This change signifies the company's commitment to addressing the unique needs of the data center vertical market. To drive this initiative, Belimo established a global business development organization dedicated to this rapidly growing and critical market.

This move aligns with the increasing demand for optimized HVAC solutions tailored to data centers, emphasizing energy efficiency, reliability, and scalability. By coordinating and concentrating resources and expertise in the data center market across its market regions, Belimo aims to strengthen its position as a key player in providing innovative solutions for the data center market.

RetroFIT+

During the period under review, Belimo's RetroFIT+ initiative played a notable role in bolstering the company's business, particularly within the contracting channel. A significant milestone was achieved in June 2024 with the launch of the RetroFIT+ Assessment Tool. This innovative tool, made available to Belimo Sales and RetroFIT+ partners, evaluates the energy savings potential of existing buildings in alignment with the ISO 52120 standard. It delivers key performance indicators such as greenhouse gas (GHG) emissions reduction, energy savings, monetary savings, and return on investment estimates while significantly reducing the assessment time required.

The RetroFIT+ initiative has led to specific new product development, such as the CQ-Series control valve actuators, which allow quick field replacement of the installed base of low-quality short-stroke valve actuators. This new solution reduces the overall amount of embodied carbon required while reducing field labor. The CQ-Series, part of the Belimo ZoneTight^TM offering, will be launched in 2025.

To ensure comprehensive support for customers from initial assessments to project completion, Belimo continued to expand its team. The company hired additional RetroFIT+ Application Specialists and Business Development Managers with extensive expertise in retrofit projects. These efforts were complemented by a strengthened network of industry partners, reinforcing Belimo's commitment to delivering tailored and impactful solutions in the retrofit market.

At the Capital Markets Day 2024 on September 4, 2024, our investors could learn firsthand about the initiative's current status and the retrofit opportunity ahead.

One notable RetroFIT+ project during the reporting period was the installation of Belimo Energy Valves™ in the Paramount Group building portfolio in New York City, US. This retrofit enabled the property owner to achieve an approximate 40% reduction in carbon emissions, significantly lower energy consumption, enhanced occupant comfort, and improved operational efficiency. Find out more to discover how Belimo’s innovative solutions are driving sustainable and efficient building operations.

Grow Asia Pacific

Under the Grow Asia Pacific initiative, Belimo continued to strengthen its market presence in China and India by expanding its sales and marketing resources. The company remains dedicated to focusing on selected vertical markets, including electronics factories, semiconductors, railways, and data centers while enhancing its application engineering expertise to address evolving market demands with agility.

Despite the overall subdued construction environment in China, Belimo achieved strong double-digit growth in net sales in the region in 2024. This ensuring result underscores the effectiveness of the company’s targeted approach and its ability to capitalize on opportunities within key verticals.

Progress on the renovation and expansion of Belimo's Shanghai location has been steady during the reporting year, so the inauguration could take place in January 2025. This project was set to more than double the facility's customization capacity while transforming the building into a sustainable lighthouse project, aiming for China Three Star and LEED Platinum certifications. The Shanghai project includes facilities for training classes and events at the China headquarters, further bolstering brand awareness and supporting customer engagement across the region.

The Indian HVAC market has experienced rapid development in recent years, supported by a positive economic outlook. Belimo has successfully gained significant market share by influencing the industry to adopt higher HVAC design standards for energy efficiency. Increased customer awareness, driven by participation in technical seminars and events organized by Belimo, such as those at the CESIM House, has further accelerated growth across a wide range of non-residential verticals. Additionally, regulatory advancements are expected to provide new opportunities. The existing Energy Conservation Building Code (ECBC) for new buildings will be replaced in Q1 2025 by the Energy Conservation Sustainable Building Code (ECSBC), which will become mandatory by 2030. This shift is anticipated to drive significant demand for retrofit projects, reinforcing Belimo's position in the market.

Digital Customer Experience

Belimo's strategic initiative Digital Customer Experience has been transitioned to an operational initiative in 2024. Key achievements from the initiative include the rollout of a new global customer relationship management (CRM) system, which is now fully operational and enhances customer relationship management and support.

Furthermore, Belimo has completed pilot testing of a CPQ (Configure, Price, Quote) software, further enhancing the quote-to-order process and strengthening its customer relationship management system. This implementation will enable the company to retire older quoting systems and tools, streamlining operations and improving efficiency. The CPQ software significantly enhances the quality of quotes, which serve as a critical touchpoint for customers and prospects. It also supports the evolving digital customer experience by meeting the integration needs of business partners. Additionally, the system provides valuable insights into the quoting process, enabling Belimo to make more informed data-driven decisions and refine its approach to better serve its customers after the roll-out in 2025.

The company's website, www.belimo.com, has been further optimized to ensure quick and easy access to company, product, and application information. The fully integrated webshop has been positively received, with a notable increase in sales transactions through e-commerce channels.

To support design engineers, Belimo has developed a comprehensive CAD and BIM data library for its products. Belimo can assist with more than 100 different file formats and entire Revit libraries. This commitment to providing high-quality data was recognized in 2024 when Belimo was awarded the Top Data Multiplier by CADENAS, a leading software company in the CAD/BIM domain. This award highlights Belimo’s excellence in delivering structured, content-rich, and reusable data, solidifying its position as a leader in digital enablement for the HVAC industry.

Damper Actuators and Control Valves

The Damper Actuator and Control Valves initiative made notable progress during the period under review, concluding the design phase and laying the groundwork for the first product launches in 2025 based on Belimo's new digital device generation product platform. These 2025 launches include the new GM and GR actuators and are supported by the Belimo Assistant App 2, which was successfully launched in the period under review and will serve as a unique digital enabler for device configuration, commissioning, and troubleshooting for all generations of Belimo devices. These efforts are advancing the renewal of Belimo's core platform for damper actuators, control valves, and sensors.

In the period under review, Belimo expanded its butterfly valve range with new high-flow JR butterfly control valves (DN100 to DN150) featuring the innovative M600 microchip. This microchip offers advanced configurable equal-percentage or linear control characteristics, providing energy savings compared to conventional globe valves. This product contributed to double-digit growth in the butterfly valve portfolio in 2024. In 2025, Belimo plans to further expand the butterfly valve family with DN350 to DN450 valves paired with the QR and YR actuators for high-performance applications. Belimo's Energy Valve also saw strong sales growth, driven by the RetroFIT+ and Data Center initiatives, as data centers dedicated to AI computing demand high-performance cooling solutions.

The Business Line Control Valves played a critical role in supporting the data center initiative, ensuring products meet the requirements of AI-driven applications. These advancements, aligned with Belimo’s growth strategy, position the company for continued success in delivering innovative, high-performance solutions.

Furthermore, the Belimo start-up BEREVA has been integrated after a successful launch of its electronic expansion valves applied in a new heat pump generator introduced into the market by one of the leading global heat pump manufacturers. Further innovative products for refrigeration applications in heat pumps and chillers will be introduced in 2025.

Sensors and Meters

Belimo’s Sensors and Meters initiative continues to generate strong sales momentum, with all milestones for the year achieved. The first sensor product line within the new digital device generation (modular product platform) is nearing completion and is set for market launch in 2025.

Belimo further advanced various portfolio enhancements projects during the period under review, such as development efforts for gas monitors and thermal energy meters. The company has significantly broadened its range of comfort, energy, and safety sensors, driving market share gains and achieving a strong double-digit growth over recent years.

A standout success has been the launch of a new range of room sensors and operating units in 2023, with Modbus and BACnet-compatible room sensors and room operating units, which have been recognized in the period under review with prestigious awards for their design and innovation. These advancements highlight Belimo’s ability to deliver high-quality, cutting-edge solutions that align with market demands and customer needs. A new software version for the room sensor range will allow for traceability of the indoor air quality by logging CO₂ levels according to California Title 24 / CalGreen requirements. Even though this is a California-specific solution, it is a leading regulation and, therefore, it is expected to be adopted in other markets too.

Belimo has made significant strides in sensor-actuator integration, a competitive opportunity that distinguishes the company from its competitors in the commercial HVAC sensor market. This integration simplifies installation and commissioning while enhancing the overall efficiency of Belimo’s solutions. By eliminating the need for additional controls or compatibility testing, such as ensuring sensors and valves work seamlessly together, Belimo’s approach offers streamlined processes that save time and resources.

During the period under review, this innovative integration was exemplified by the Belimo Energy Valve™, which received an upgrade to include pressure control functionality through a software enhancement. This advancement, now a standard feature within the product bundle, incorporates a specific Belimo water pressure sensor to create a highly effective product combination. The upgrade has already generated a measurable positive impact on sensor sales, underscoring the market value of these integrated solutions.

Building on this momentum, Belimo plans to launch the 6-way EPIV valve in 2025, featuring the Belimo dew point sensor tailored for optimized control in chilled ceiling applications. Set to debut in the first half of the year. This new offering represents another milestone in Belimo’s ongoing commitment to advancing sensor-actuator integration and delivering innovative solutions to the market.

Digital Ecosystem

Belimo has made significant progress with its Digital Ecosystem initiative, enhancing its entire product portfolio. This evolving platform adds value to Belimo devices by integrating intelligent onboard software, enabling seamless device connectivity, and improving workflow efficiencies through a consistent user experience.

A key development within this initiative is the introduction of the Belimo Assistant App 2. Alongside the new 2025 Belimo Assistant Link, this suite of tools significantly enhances the functionality of and provides a consistent user experience for existing and future Belimo devices. The integration empowers customers to efficiently configure, commission, and operate their systems in a paperless and streamlined manner.

The initiative also plays a vital role in enabling direct and indirect customers' end-to-end value creation through collaborative efforts, with partnerships across more than thirty Building Automation Control Systems (BACS) and Building IoT (BIoT) providers. As it is increasingly evident that only collaborative efforts can satisfy the need for holistically better operating buildings to fulfill our common mission for sustainability, Belimo Digital Ecosystem Partnership program is to be significantly strengthen in the upcoming years.

Belimo plays a pivotal role in the digital ecosystem of HVAC operations within sustainable buildings. The company is renowned for its expertise in physical and mechanical devices and the essential application intelligence required for efficient operation. Belimo’s device digital twins provide enriched datasets and seamless integration, enabling more effective use of this data when compared to the current industry standard.

Furthermore, the Belimo InnoVision corporate venture capital fund has already invested in innovative and potentially disruptive start-ups focused on digital advancements in HVAC and Building IoT, with plans to continue fostering such developments in the future.