Shares in Belimo Holding AG surged on Tuesday, gaining over 8% in Zurich trading after the Swiss building automation specialist posted better-than-expected annual results. The company, which manufactures actuators and valves for heating, ventilation and air conditioning systems, reported net sales of CHF 877 million for 2024, up 7.2% year-on-year in local currencies. Operating profit rose to CHF 173.6 million, lifting the margin to 19.8% from 18.5% in 2023, comfortably ahead of consensus forecasts.
The strong performance was underpinned by robust demand in the Americas and Asia-Pacific regions, where tighter energy efficiency regulations are driving building upgrades. European sales also grew, albeit at a more modest pace, reflecting continued investment in commercial property retrofits. Belimo's order book remained healthy entering 2025, with management pointing to a solid pipeline of projects in the data centre and healthcare sectors.
Analysts at UBS described the results as 'impressive,' noting that margin expansion came despite persistent cost inflation. 'Belimo's ability to pass through price increases while maintaining volume growth underscores its competitive moat in the HVAC control market,' they said in a note. The company also proposed a higher dividend of CHF 38 per share, up from CHF 36 last year, reinforcing its commitment to shareholder returns.
The rally in Belimo's stock lifted sentiment across the European industrial sector, with UK-listed peers such as Spirax-Sarco Engineering and Halma seeing modest gains. For UK investors, the move highlights the growing premium attached to companies exposed to the energy efficiency theme, which is expected to benefit from tighter building regulations in the UK and Europe. The FTSE 100 edged up 0.3% on Tuesday, though broader markets remained cautious ahead of key inflation data later this week.
Belimo's performance also offers a window into the broader trend of 'green building' investment, which is gaining traction as governments push for net-zero targets. The company's focus on digital valve technology and IoT-enabled controls positions it well for long-term growth, though some analysts caution that valuation multiples are now stretched. The stock trades at around 45 times forward earnings, above its five-year average.