On Holding sets 2029 targets, OKs $1B buyback
On Holding AG sets 2026–2029 growth and profitability targets, authorizes up to USD 1 billion in share repurchases, and reiterates strong 2026 guidance.
Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
6-K
Rhea-AI Filing Summary
On Holding AG (ONON) outlines a new mid‑term strategy and financial ambitions for 2026–2029, targeting high‑teens constant‑currency net sales growth to reach at least CHF 5.6 billion in 2029, while sustaining a gross profit margin of at least 65% and expanding adjusted EBITDA margin to 22%+.
The company expects adjusted EBITDA to compound at more than 20% annually over 2026–2029 and reiterates its 2026 outlook for low‑20% constant‑currency net sales growth, gross margin of at least 65%, and adjusted EBITDA margin of 19.5%–20.0%. The Board has authorized a share repurchase of up to USD 1 billion of Class A shares through December 2029. On also guides to around 17% constant‑currency net sales growth in Q3 2026 and up to USD 65 million in tariff refunds benefiting Q3 gross profit, and announces the appointment of Laura Miele as Lead Independent Director.
Positive
- Targets high-teens constant-currency net sales CAGR through 2029, reaching at least CHF 5.6 billion in net sales and positioning for continued strong top-line expansion.
- Aims to sustain an industry-leading gross profit margin of 65%+ and reach an adjusted EBITDA margin of 22%+ by 2029, implying attractive profitability.
- Board authorizes an inaugural USD 1 billion share repurchase of Class A Ordinary Shares through the end of 2029, signaling a plan to return capital to shareholders.
- Reiterates full-year 2026 outlook for low-20% constant-currency net sales growth, ≥65% gross margin, and 19.5%–20.0% adjusted EBITDA margin, underscoring confidence in near-term performance.
- Expects up to USD 65 million in tariff refunds in Q3 2026 to benefit reported gross profit, providing an additional earnings tailwind.
Negative
- None.
