Rational Reached 642 Million Euros in Revenue in the First Half: Strong Demand in Europe, Weaker in Asia

Professional kitchen equipment manufacturer Rational AG closed the first half of 2026 with growth.

According to the results announced by the company, the sales revenue for the first six months reached 641.5 million euros. In the same period of 2025, this figure was 606.2 million euros. Nominal growth was 6%, while organic growth adjusted for currency effects was approximately 8%. Second-quarter sales amounted to 324 million euros, reflecting a 4% year-on-year increase.

These figures indicate that the demand for industrial kitchen equipment remained generally strong. However, performance is not uniform regionally.

Europe as the Main Engine of Growth

Rational's growth in the first half was primarily driven by Europe.

Sales in European markets outside Germany increased by 9%. The company notes particularly strong performances in Scandinavia, Austria, Spain, and France. Growth in Germany was also 9%.

This picture is significant in terms of HORECA investments.

Professional kitchen equipment is generally dependent on investment decisions in restaurants, hotels, catering, care services, and mass meal operations. The continued growth of equipment demand in Europe indicates that renovation or capacity investments have not completely stalled despite high financing and operating costs.

However, Rational's data does not represent the entire European HORECA investment market alone. The results reflect the company's own sales performance.

North America Affected by Currency

In North America, nominal sales growth was only 1%. In contrast, when adjusted for currency effects, growth in the region exceeds 10%.

This difference shows that it is not sufficient to look solely at the actual order volume for international equipment manufacturers.

The company may achieve strong sales in the local market; however, when revenues are converted to the main reporting currency, currency movements can pull growth down.

A similar situation was observed in Rational's first quarter. In Q1 2026, North American sales increased by 11%, while growth adjusted for currency effects reached 23%.

China Pressure Continues in Asia

Asia was weaker in the first half.

Sales revenues in the region declined nominally by 2%. The company indicates that the decline is particularly due to the Chinese market. When adjusted for currency effects, growth in Asia is calculated at 4%. Japan's performance has been positive.

This also shows that the global growth of equipment manufacturers is not based on a single market story.

While investments in Europe and North America are driving the company, lower demand in China can limit overall growth.

iVario Grew Faster than iCombi

There is a notable divergence among product groups.

Rational's iVario sales revenues increased by 14% to 79.4 million euros in the first half. The company's main product group, iCombi, grew by 5% to generate 562.2 million euros in sales.

This difference may indicate that professional kitchens are growing not only in the combi oven segment but also in investments in multifunctional cooking systems.

However, it is important to note the scale difference here.

The sales volume of iCombi is much larger than that of iVario. Therefore, while iVario, which grew by 14%, is progressing faster, iCombi still makes the largest contribution to total revenue.

First Quarter Price Increase Brought Demand Forward

There is also an important seasonal effect when evaluating the company's first-half performance.

Rational states that some customers brought their orders forward to the first quarter due to a planned price increase in the U.S. This pull-forward effect may have boosted Q1 performance.

Therefore, it is not entirely accurate to interpret the entire first-half growth as entirely new demand.

When the expectation of a price increase encourages customers to advance their purchasing time, a strong order in one quarter may have been pulled from demand in another period.

The slowdown in growth to 4% in the second quarter can also be interpreted in this context.

Profitability Strong but Tariff Refund Impact Exists

Rational's EBIT margin in the second quarter was 29%, while the EBIT margin for the first half was 26.5%. First-half EBIT increased by 11% to 169.9 million euros.

However, a significant portion of the second-quarter margin did not come from regular operations.

The company states that it received approximately 14 million euros in tariff refunds due to IEEPA tariffs in the U.S., which significantly supported the gross margin. CFO Jörg Walter stated that excluding this special effect, the EBIT margin would be approximately 24.3%.

Therefore, interpreting the 29% margin in the second quarter as the "new normal" would be misleading.

When evaluating operational performance, it is necessary to separate one-time revenues from operational profitability.

Cost Increase Slower than Sales

In the first half, the cost of sales increased by 4% to 258.1 million euros. Since sales revenues grew by 6%, the gross margin rose from 59% to 59.8%.

Operational expenses increased by 5% to 215.3 million euros.

This indicates that the company was able to keep sales growth above the cost increase. However, according to the company's own statement, without the tariff refund, the pressure from logistics and tariffs would have been more visible on the cost side.

Order Outlook Provides Confidence for the Second Half

Rational management did not change its year-end expectations.

The company notes that the recovery in demand towards the end of the second quarter, high new order levels, and increasing order backlog support the second half. The expectation for an EBIT margin of 25-26% for 2026 is maintained.

CEO Peter Stadelmann describes this as a "tailwind" for the second half.

However, the order backlog is not realized revenue. Deliveries, cancellations, currency, and market conditions can still affect year-end results.

Employee Count is Also Increasing

By the end of June 2026, Rational employs 2,913 employees worldwide, with 1,581 in Germany. Approximately 120 new employees have been added in the last 12 months.

This figure shows that the company's growth is not only on the sales side.

Rational had also invested in expanding sales territories and increasing customer proximity throughout 2025. The company's 2026 annual report states that 102 new employees were hired in the previous year, most of whom were assigned to sales territories.

This is significant for equipment manufacturers; professional kitchen technology requires not only device sales but also demo, training, service, and technical support capacity.

What Does This Mean for Businesses?

Growth for manufacturers like Rational should not directly send a message to restaurant or hotel managers to "buy new equipment."

The more important question is the return on investment for equipment investment on the operational side.

Does a new combi oven or multifunctional cooking system:

reduce labor time?

lower energy consumption?

provide higher production in the same kitchen area?

reduce waste?

how long does staff training take?

what are the maintenance costs?

Without measuring these indicators, the financial growth of the manufacturer does not prove the ROI of the business.

Stafflink's View

In our opinion, the main message from Rational's first-half results is not just the 8% organic growth but where the demand is coming from and how profitability is formed.

Europe is strong. North America is growing operationally despite currency effects. China is weaker. iVario is growing faster. The margin is supported by one-time tariff refunds.

These distinctions are important for reading the equipment market.

While an increase in a manufacturer's sales may indicate that HORECA businesses continue to invest, the correct decision on the operational side still depends on the same question:

How does the new equipment change the total cost of ownership and the economic value it produces per shift, rather than just the sales price?