On Holding Ag Class A ((ONON)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for On Holding Ag Class A was marked by a positive sentiment, underscored by robust revenue growth, record profitability, and significant expansion in both the Asia Pacific and apparel segments. The company’s decision to raise its full-year outlook further reflects its confidence in its premium strategy, although challenges such as tariffs and currency exchange headwinds remain on the horizon.
Strong Revenue Growth
In the third quarter of 2025, On Holding Ag Class A reported net sales nearing CHF 800 million, representing a 24.9% increase year-over-year on a reported basis and a 34.5% increase at constant exchange rates. This substantial growth highlights the company’s successful strategies in capturing market share and expanding its customer base.
Record Profitability
The company achieved a gross profit margin of 65.7% and an adjusted EBITDA margin of 22.6%, with nearly 50% year-over-year growth in adjusted EBITDA. These figures underscore the company’s ability to maintain high profitability while scaling its operations.
Asia Pacific Growth
The Asia Pacific region emerged as a significant growth driver, with net sales of CHF 144.9 million, marking a 94.2% increase year-over-year on a reported basis and a 109.2% increase at constant currency. This impressive performance positions the region as a key engine for future growth.
Apparel Segment Expansion
On Holding Ag Class A’s apparel segment also showed remarkable progress, with net sales reaching CHF 50.1 million, an 86.9% increase year-over-year on a reported basis and a 100.2% increase at constant currency. This expansion reflects the company’s successful diversification into new product categories.
Raised 2025 Outlook
The company has raised its constant currency net sales growth guidance to 34% year-over-year, with an expectation of CHF 2.98 billion in reported net sales. This optimistic outlook indicates the company’s confidence in sustaining its growth trajectory.
Challenges from Tariffs
Despite the positive performance, the company anticipates the full impact of additional U.S. tariffs in future quarters, which could potentially affect profitability. This remains a concern that the company will need to navigate carefully.
Currency Exchange Headwinds
The current foreign exchange environment has negatively impacted SG&A and adjusted EBITDA margins, posing challenges to maintaining profitability in the face of fluctuating currency values.
Conservative Q4 Growth Outlook
Despite the strong performance in Q3, the guidance for Q4 suggests a mid-20s growth rate, reflecting a conservative outlook amidst potential market uncertainties. This cautious approach indicates the company’s awareness of external economic factors that could influence future results.
Forward-Looking Guidance
On Holding Ag Class A’s forward-looking guidance remains optimistic, with a projected 34% year-over-year growth in constant currency net sales for 2025. The company’s focus on a premium strategy and its strong performance across various metrics have led to this positive outlook.
In summary, On Holding Ag Class A’s earnings call conveyed a strong positive sentiment, driven by impressive growth figures and strategic expansions. While challenges such as tariffs and currency fluctuations pose potential risks, the company’s raised outlook and strategic focus suggest a promising future trajectory.