By John Revill
ZURICH (Reuters) -Plumbing materials supplier Geberit on Thursday said global geopolitical and economic risks had increased this year but looked forward to improving sentiment in Germany, driven by the country’s 500 billion euro ($539.65 billion) infrastructure fund.
Europe is facing subdued economic growth prospects while U.S. tariffs could hit its economy and the world economy in general, said the Swiss company, the performance of which offers insight into the health of the broader construction sector.
“Overall, the global economy will face considerable uncertainties in 2025,” Geberit said. “These geopolitical and macroeconomic risks are leading to corresponding uncertainties in the building construction industry.”
U.S. tariffs would have no significant impact on the company, it said.
Geberit said 2025 should be roughly stable for the European construction sector as increased renovation work compensated for weaker new build projects.
CEO Christian Buhl said the low point for the European construction market would be reached this year before factors such as Germany’s infrastructure development fund, and improvements in the Netherlands, Spain and Scandinavia, kicked in.
Geberit would benefit from more spending on public buildings in Germany, Europe’s biggest economy, but the main benefit would come from improving public sentiment, Buhl said.
“The more important lever is on the economy in general,” he told Reuters. “Consumer confidence is an important driver that people think about, for example, when considering renovating their homes.”
A boost to Germany’s economy would also have a positive effect on the rest of Europe, Buhl added.
Geberit, which makes bathroom ceramics and piping, said 2024 had been an “extremely challenging year” as it posted EBITDA of 913 million Swiss francs ($1.03 billion), in line with an analyst consensus of 914 million gathered by Visible Alpha.
Operating profit fell 0.9% to 762 million francs, also in line with expectations.
Geberit in January reported 2024 sales of 3.09 billion francs, virtually unchanged from 2023.
($1 = 0.8903 Swiss francs)
($1 = 0.9265 euros)
(Reporting by John Revill, Editing by Miranda Murray, Kirsten Donovan)
