On Holding CEO Martin Hoffmann emphasizes premium brand discipline and automated innovation despite projected sales deceleration

On Holding CEO Martin Hoffmann discusses record 2025 profits, the LightSpray automation revolution, and maintaining premium growth despite a 23% sales guidance.

By: AXL Media

Published: Mar 4, 2026, 7:43 AM EST

Source: The information in this article was sourced from TheStreet

Record financial performance in 2025

On Holding reported a milestone fourth quarter to conclude its 2025 fiscal year, with annual net sales officially exceeding the $3 billion mark. Co-CEO and Acting CFO Martin Hoffmann noted that on a constant-currency basis, the final quarter saw sales growth of 35.6 percent, driven largely by a doubling of revenue in the Asia-Pacific region. The company achieved a gross profit margin of 62.8 percent and an EBITDA margin of 18.8 percent, figures that surpassed the internal targets originally set for the 2026 period. This performance was achieved during a highly promotional retail environment where On Holding maintained a strict full-price selling strategy.

Strategic guidance and market reaction

Despite the record breaking year, On Holding’s 2026 guidance predicts a net sales growth of 23 percent. While some analysts characterized this as a significant deceleration compared to the 36 percent growth seen in 2025, Hoffmann defended the figure as an elite growth rate for a company of its current scale. He emphasized that the brand is prioritizing qualitative growth over volume, remaining selective with wholesale partners and retail locations to protect its premium identity. The company expects its direct-to-consumer channel to continue outperforming wholesale, particularly as it expands its apparel and accessories categories.

Automation and manufacturing revolution

A central component of On’s future strategy involves the transition from manual labor to fully automated manufacturing processes. Traditionally, footwear production involves approximately 150 people per product, but On is pioneering a new method known as LightSpray. This technology utilizes 32 robots in a South Korean facility to spray high-performance uppers directly onto outsoles. This automation allows the company to consider "near-shoring" production closer to distribution markets, potentially reducing lead times and mitigating the impact of international tariffs by being less dependent on regional labor costs.