Fluidra Shields Itself from Trump's Tariff BlowsBy Ion Jauregui – Markets Analyst, ActivTrades
Amid the renewed escalation of trade tensions, Fluidra faces the potential impact of new tariffs driven by the Trump administration. The tariff dispute not only complicates international operations but also directly affects the company’s cost structure. With 50% of its sales in North America coming from products manufactured in Mexico and an additional 15% originating from China, Fluidra is particularly exposed to any increase in tariff rates. The company's projections indicate that, without swift measures, these tariffs could negatively impact its results by up to 50 million euros.
Profitability and Growth Objectives
During its Capital Markets Day, Fluidra made clear its commitment to improving its profitability. The firm aims to raise its EBITDA margin to 25% in the medium term, up from the 22.7% achieved in 2024. This objective represents an expansion of over two percentage points, following the upward trend seen between 2019 and 2024 (from 19.7% to 22.7%). In addition, the company forecasts organic sales growth in the range of 6% to 8% per year, which marks a significant acceleration compared to the modest 2.5% recorded in 2024.
Impact Mitigation Strategy
To safeguard its operating margins from tariff pressure, Fluidra has implemented a structured plan based on three main pillars:
Price Adjustment: The company has increased prices in the United States by 3.5%, a necessary measure to pass part of the rising costs onto its customers.
Operational Cost Optimization: Fluidra is reviewing and streamlining its production processes across all geographies, especially in America, where strategies include sharing costs with suppliers and the potential relocation of production.
Supply Chain Restructuring: The firm is evaluating new strategies in its international operations to minimize the tariffs' impact, thereby ensuring that pressure on the results remains under control.
Geographic Performance and Revenue Growth
Fluidra’s performance varies across markets:
North America: This region is solidifying its position as the group’s main growth engine, experiencing a 7.5% revenue increase, which underscores its strategic importance.
Europe: While Southern Europe saw a revenue contraction of 3.7%, the rest of Europe grew modestly (+1.6%). These differences reflect variations in demand and in each market’s ability to adjust prices.
International Markets: The rest of the world contributed a slight growth (+0.7%), adding to a global scenario in which Fluidra aims to consolidate its position.
Based on these figures, the company expects to close 2025 with revenues between 2,140 and 2,250 million euros—surpassing the sector’s average growth, estimated between 4% and 6%. Additionally, it is anticipated that the remaining 2% of growth will come from inorganic operations and increased market share.
Innovation and Strategic Expansion
Fluidra is not solely focused on price adjustments and cost reductions; it has also bet on inorganic expansion to reinforce its position. Among its most noteworthy moves is the acquisition of a 27% stake in Aiper Inc, a company specializing in robotics for pools, for 100 million dollars. Such investments aim to broaden the company’s footprint in emerging markets, with a commitment to progressively increasing its equity stake as the financial targets outlined in the company’s plan are achieved.
Technical Analysis
On the monthly chart, the company has shown solid support around 12.83 euros per contract since its previous bullish surge that reached a high in September 2021. After those highs, Fluidra corrected its price in October 2022 down to the current support “drill zone,” which has subsequently served as a new launchpad into the 2024 Christmas rally. Its Point of Control (POC) on the monthly chart is located at 14.78 euros. On the other hand, examining the 4-hour chart reveals that the POC is around 22.08 euros, well above the current support at 18.20 euros. With a current trading price around 19.60 euros, the RSI has moved out of oversold levels and is attempting to return to a more neutral zone, rising from 20% to the current 39.36%. The monthly moving average crossover indicates that the bullish development has not yet concluded despite the current bearish candle. However, on the 4-hour chart, the downward turn has not been corrected, resulting in a conflict of signals. Analyzing the pressure from the delta zones reveals a very strong barrier above 20 euros, which makes it likely that the price will move back to the upper area of the 4-hour bell curve, positioned around 22 euros as mentioned.
Conclusion
In an environment marked by global uncertainty and tariff pressure, Fluidra demonstrates resilience and adaptability. With clear growth objectives and an integrated strategy focused on margin improvement, the company is well-positioned to face current challenges and secure higher profitability. Through adjustments in pricing, operational optimization, and strategic expansion moves, Fluidra is preparing to maintain its strong performance and create sustainable value for shareholders, despite the impacts of the new U.S. trade policy. Despite the uncertain context, Fluidra remains steadfast in its commitment to generating sustainable and profitable value, with the goal of maintaining a ROCE of 17% while continuing to consolidate its global market position through a strategy centered on efficiency, innovation, and diversification.
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