On Holding AG Reports Strong FY2025 Results, Exceeds Outlook, and Provides Optimistic 2026 Guidance

summarizeSummary

On Holding AG announced strong fourth-quarter and full-year 2025 financial results, exceeding its latest outlook, and provided optimistic net sales and profitability guidance for 2026, alongside details on executive compensation and long-term incentive payouts.

check_boxKey Events

• Full Year 2025 Financial Performance

  Net sales increased by 30.0% to CHF 3,014.0 million (35.6% constant currency), with Adjusted EBITDA growing 46.3% to CHF 567.0 million and Adjusted EBITDA margin expanding to 18.8% from 16.7%.

• Q4 2025 Financial Performance

  Net sales reached CHF 743.8 million, up 22.6% (30.6% constant currency), and Adjusted EBITDA increased 31.8% to CHF 131.0 million, achieving a new Q4 record gross profit margin of 63.9%.

• 2026 Financial Guidance

  The company expects net sales to grow by at least 23% year-over-year on a constant currency basis (at least CHF 3.44 billion reported), with a gross profit margin of at least 63.0% and an Adjusted EBITDA margin between 18.5% and 19.0%.

• Executive Compensation Exceeds Approved Maximum

  Total compensation awarded to Executive Officers for 2025 was CHF 27.33 million, exceeding the shareholder-approved maximum of CHF 26 million by CHF 1,329,687, which will require a binding shareholder vote for approval.

auto_awesomeAnalysis

On Holding AG delivered robust financial performance for both the fourth quarter and full fiscal year 2025, surpassing its latest outlook across all key metrics. The company achieved significant net sales growth and substantial Adjusted EBITDA expansion, driven by strong consumer demand and strategic market and product category expansion. While reported net income decreased, profitability margins improved. The company's 2026 guidance is optimistic, projecting at least 23% constant currency net sales growth and continued elevated profitability. A notable governance item is the CHF 1.33 million overage in total 2025 executive officer compensation, exceeding the shareholder-approved maximum, which will require a binding shareholder vote. However, this is a minor amount relative to the company's overall financial performance and market capitalization, and the company is addressing it transparently. High payout factors for Performance Stock Units (PSUs) reflect strong achievement against long-term financial and Total Shareholder Return targets.