Geberit

Geberit dominates European sanitary systems by owning the invisible infrastructure behind every toilet and sink - not the fixtures consumers see, but the concealed piping, flushing mechanisms, and in-wall systems that contractors specify and that buildings depend on for decades. Founded 1874, this B2B2C strategy creates switching costs that generate 30%+ EBITDA margins rare in building materials.

The competitive advantage resembles root system dependencies: once a building uses Geberit's in-wall sanitary infrastructure, replacement parts and service must source from Geberit for 30-50 years. Unlike bathroom ceramics (front-of-wall products acquired via Sanitec in 2015), behind-wall systems integrate into building structure during construction - replacing them requires demolishing walls and disrupting building operations. Plumbers and contractors specify Geberit because they know the product, trust the supply chain, and face retraining costs for competing systems.

First nine months 2025 delivered CHF 2.45B in sales (4.4% growth in local currencies) despite weak European construction markets, with EBITDA margin at 30.8%. The company expects full-year 2025 local currency growth around 4.5% with 29% EBITDA margin, demonstrating resilience from renovation business (60% of sales) that proves more stable than new construction. With 90% of revenue from Europe where Geberit holds leadership position, the company exemplifies geographic focus over global expansion.

The structural moat compounds through standardization: as Geberit systems become default specifications in European building codes and contractor training, competitors face installed base disadvantages. Like mycorrhizal networks that trees cannot replace without trauma, Geberit's in-wall infrastructure persists through building lifecycle because switching cost exceeds continuation cost. Recent innovation in digital building systems and water-saving technologies extends product portfolio while maintaining the core strategy: control the invisible infrastructure that buildings cannot economically change.

Medium-term targets expect 5% annual growth (2% market growth plus 3% overperformance) with 28-30% EBITDA margins and industry-leading ROIC, reflecting confidence that specialization in invisible, critical, hard-to-replace components beats competing in visible products where consumers drive switching decisions. With 11,000 employees across 50 countries and 150-year survival, Geberit proves that infrastructure lock-in creates defensibility even in mature markets.