Sonova Holding AG Delivers Strong FY 2024/25 Results, Positions for Future Growth

Sonova Holding AG, a global leader in hearing care solutions, has announced robust financial results for its fiscal year 2024/25, showcasing resilience amid macroeconomic challenges and strategic execution. The company reported CHF 3.87 billion in revenue, a 7.6% increase in local currencies, driven by market share gains, product innovation, and geographic diversification. Here’s a deep dive into the numbers and implications for investors.

Financial Highlights: Growth and Margins Hold Steady

Sonova’s FY 2024/25 results reflect a well-executed strategy to balance growth with profitability:
- Revenue Growth: Total sales reached CHF 3,865.4 million, up 6.6% in Swiss francs and 7.6% in local currencies. The Hearing Instruments segment, representing 92% of revenue, grew 7.5% in local currencies, fueled by its Phonak Audéo Sphere™ Infinio platform, which now accounts for ~50% of new platform sales.
- Profitability: Adjusted EBITA rose to CHF 807.8 million, a 7.4% increase in local currencies, with a margin of 20.9%. While slightly down due to currency headwinds, this margin remains robust compared to industry peers.
- Cash Flow: Operating free cash flow increased 7.2% to CHF 577.9 million, supporting a 1.2x net debt/EBITDA ratio, well within its target range.

Product Innovation Drives Market Leadership

The star of Sonova’s performance is its Phonak Audéo Sphere™ Infinio platform, which addresses the critical “speech-in-noise” problem for hearing-impaired users. This AI-powered technology has been pivotal in capturing market share, particularly in the second half of the fiscal year. The product’s success is underscored by its 50% share of new platform sales, despite higher pricing, indicating strong demand for premium hearing solutions.

The Cochlear Implants segment also performed well, with sales rising 9.5% in local currencies due to a 16.3% jump in system sales, reflecting improved commercial execution and market penetration.

Regional Performance: Strength in Diversity

Sonova’s geographic diversification paid dividends:
- EMEA (Europe, Middle East, Africa): Sales grew 7.0% in local currencies, bolstered by platform launches and bolt-on acquisitions.
- Americas: U.S. sales rose 7.7%, while non-U.S. markets (e.g., Canada, Brazil) surged 10.8% due to store expansions.
- Asia Pacific: Sales increased 8.1%, driven by Australia’s strong performance and Cochlear Implants growth. China’s sluggish hearing aid market was offset by gains in consumer hearing products.

Leadership Transition: A Smooth Handover

The departure of longtime CEO Arnd Kaldowski in September 2025 has been carefully planned. His successor, Eric Bernard (ex-CEO of WS Audiology), brings 30 years of experience in hearing care and optical industries, aligning with Sonova’s focus on innovation and global expansion. Bernard’s appointment signals continuity in strategic priorities, easing investor concerns about leadership stability.

Outlook: Navigating Challenges with Momentum

For FY 2025/26, Sonova projects revenue growth of 5–9% in local currencies, with adjusted EBITA rising 14–18%. However, currency headwinds are expected to reduce Swiss franc-denominated growth by 4–6 percentage points, reflecting the strong Swiss franc’s impact.

The company also highlights strategic advantages:
- Nairobi Protocol: Exemption from U.S. tariffs on 85% of its products (Hearing Instruments and Audiological Care) mitigates trade risks.
- Product Pipeline: Future AI-driven innovations and market share gains in emerging economies position Sonova to capitalize on the $20 billion hearing care market, projected to grow at a 6–8% CAGR through 2030.

Conclusion: A Strong Foundation for Growth

Sonova’s FY 2024/25 results underscore its ability to navigate challenges while delivering top-line growth and margin stability. With its AI-driven product leadership, geographic diversification, and disciplined balance sheet, the company is well-positioned to outperform in a consolidating hearing care industry.

Key data points to note:
- Revenue Growth: 7.6% in local currencies, outpacing the ~5% industry average.
- Margin Resilience: 20.9% EBITA margin despite currency headwinds.
- Debt Management: Net debt/EBITDA of 1.2x, ensuring flexibility for acquisitions and R&D.

Investors should monitor macroeconomic factors like U.S. consumer confidence and exchange rates, but Sonova’s strategic initiatives and leadership transition suggest a path to sustained growth. For long-term investors, Sonova remains a compelling play on an aging global population and rising demand for advanced hearing solutions.

Final Takeaway: Sonova’s FY results highlight a company primed to capitalize on its innovation and market leadership. With a solid foundation in place, the coming fiscal year could mark the next phase of its ascendancy in the hearing care space.