Villeroy & Boch confirms adjusted full-year forecast in a 'volatile' market environment
Despite ongoing geopolitical uncertainty and challenging market conditions, Villeroy & Boch has confirmed its adjusted full-year forecast for 2026. Based on the adjusted full-year forecast, the management board of Villeroy & Boch AG said it sees the Group within the defined target range, despite a market environment that continues to be shaped by geopolitical tensions. Consolidated revenue for the first 9 months amounted to €956.2 million, 11.1% below the previous year’s figure. Adjusted for currency effects and the sale of the Northern European brands Gustavsberg and Vatette, the decline was 5.2%. Orders on hand rose to €167.4 million as at 30th September 2026 (31st December 2025: €150.4 million).
In view of the ongoing geopolitical conflicts and divestments, operating EBIT amounted to €40.9 million, compared with €65.1 million in the previous year (€55.5 million adjusted for divestments). The non-operating result improved significantly to -€3.4 million (previous year: -€24.5 million). Impacted by non-recurring tax effects, the Group result was -€12.4 million (previous year: €8.4 million).
The company said the Bathroom & Wellness Division continues to be heavily affected by a challenging market environment and generated revenue of €742.4 million (previous year: €865.6 million, -14.2%), which corresponds to a decline of 7.2% adjusted for currency effects and divestments. The impact of geopolitical tensions and weak construction activity is particularly evident in the EMEA (-13.5%) and APAC and Americas (-22.0%) regions. Operating EBIT amounted to €28.2 million (previous year: €52.5 million). One positive development is the division’s order book, which rose to €136.9 million (31st December 2025: €131.9 million).
“The market situation in the bathroom and wellness business remains challenging, particularly in regions affected by geopolitical tensions and weak construction activity. At the same time, the increase in the order book shows that our customers continue to trust in our offering. With the combined product range of Villeroy & Boch and Ideal Standard and the progressing integration, we are laying the foundation to benefit from a market recovery,” said Georg Lörz, bathroom & wellness director.
Looking ahead, the company said the global market environment remains characterised by subdued economic momentum and geopolitical volatility. In particular, the conflict in the Middle East and uncertainties regarding tariffs and trade policy are weighing on performance. In line with the revised forecast, the Group expects a decline in revenue in the higher single-digit percentage range, operating EBIT of €50 million to €56 million, a rolling return on net operating assets of 5.5% to 6.5% and operating investments of around €40 million.
“In view of the economic and geopolitical environment, we're continuing to plan prudently. However, with the forecast confirmed at the end of the quarter, an increased order book and solid performance in Dining & Lifestyle, we have a good foundation for the final quarter,” said finance director Dr Markus Warncke.
