Outlook 2026
Geopolitical and macroeconomic environment
Geopolitical risks and the associated macroeconomic uncertainties have increased significantly following the escalation of the conflict in the Middle East, which makes it difficult to provide an outlook for the macroeconomic environment and developments in inflation, interest rates and consumer sentiment, which are important for the building construction industry. Overall, the global economy will be exposed to significant uncertainties. Europe is expected to face subdued growth prospects as before.
Slight recovery in the building construction industry
After the sharp declines since mid-2022, demand in the building construction industry stabilised overall in 2025, with different developments in the new construction and renovation business depending on the country/market.
In Europe, slight market growth is expected in 2026 overall – but no market recovery yet. This assessment is based on a stabilisation in the number of building permits in 2025 with a corresponding stable outlook for the new construction business in the current year. A slightly positive development is again expected in the renovation business, which accounts for around 60% of Geberit’s sales; several indicators relevant to this area suggest this, including the increase in real estate transactions. Outside Europe, the outlook for the building construction industry is mixed. Strong demand is forecast in several markets, such as India. However, a continued decline in market demand is expected in China due to the collapse in new construction activities.
Currencies and cost inflation
Fluctuations in the Swiss franc compared to other important currencies used by the Geberit Group will continue to affect sales and earnings. Gains and losses result mainly from the translation of local results into Swiss francs (translation effects). However, currency fluctuations generally have no significant impact on operating margins due to high natural currency hedging. Natural currency hedging entails making sure that costs in the various currencies are incurred in the same proportion in which sales are generated. With regard to the impact of foreign currency effects, please refer to the information in the Management of currency risks section.
In terms of costs, wage inflation for 2026 is expected to be around 3%, and higher direct material prices are expected in the first quarter of 2026 compared to the fourth quarter of 2025. Moreover, Management is planning additional spending totalling CHF 20 million in 2026 on growth initiatives outside Europe and on IT and digitalisation projects. No further significant expenses (OPEX and depreciation) is expected in 2026 for the closure of the ceramics plant in Wesel (DE), which was announced in January 2025 and is planned for the end of 2026.
Geberit
Given the slight improvement in the market environment, the goal for 2026 is again to further expand Geberit’s market position through targeted strategic initiatives, including:
the new products of the year 2026 as well as the focus on products that have been successfully launched in previous years – such as the Geberit FlowFit and Mapress Therm piping systems, the Alba shower toilet and the Duofix installation element,
investments in IT, digitalisation and artificial intelligence,
new marketing activities aimed at end customers, architects and designers, and
the expansion and renewal of logistics capacities.
Both the Board of Directors and the Group Executive Board see Geberit as very well positioned to master current and upcoming opportunities, consistently exploit opportunities and to further expand its market position. This assessment is based on the stable and long-term strategy, the proven business model with strong customer relationships and the industry-leading financial stability. The strong corporate culture practised by the experienced and highly motivated employees, a number of promising growth initiatives, the products that have been launched in recent years and the promising development pipeline, a lean and customer-oriented organisation, an established cooperation based on trust with the market partners in both commerce and trade, and the Group’s continued very solid financial foundation are vital to its future success.