December 4, 2025
Zumtobel’s Global Growth Continues to Dim
Worldwide revenues dip 6.9% as New York facility winds down operations
In December, as the final lights dim at Zumtobel’s Highland, New York facility, the broader picture comes into focus: the Austrian lighting manufacturer is still very much in business in the United States — just not in the business of making lights there anymore.
The Hudson Valley plant, which officially ceases operations this month, had long symbolized Zumtobel’s American ambitions. But after years of underutilization and a shifting strategy, Zumtobel confirmed in August that U.S. production would end in 2025. That moment has now arrived, and with it, a new phase for Zumtobel’s presence in North America.
Let’s be clear: Zumtobel hasn’t exited the U.S. — they’ve recalibrated. Sales, distribution, and specifier support remain intact, with deliveries now routed through Zumtobel’s international production network. This brings the U.S. business model closer to how other European architectural lighting brands operate: promote the brand, spec the jobs, ship from Europe.
The Highland closure affects about 70 employees and cost the company approximately $7 million in special charges this half-year alone. It's part of a broader push to reduce structural overhead as the company leans hard into a multi-year efficiency campaign. The U.S. facility, once framed as a foothold for faster local fulfillment, had become “structurally unprofitable,” according to company statements.
American Market Share: From Footnote to Fluctuation
In FY 2020, Zumtobel reported “Americas” as a standalone region, contributing 13% of total revenue. That data point has since been blended into the broader “Americas + MEA” category — to include Middle East and Asia, and now accounts for just 5% of company revenue. Even allowing for regional accounting shifts, that’s a steep drop.
The company’s financials for the six-month period ending October 31, reflects it. Global revenues fell 6.9% to €537.6 million, while net profit plunged 26.9% to €13.5 million. Lighting remains the stronger of Zumtobel’s two main segments, but even that division posted a 6% year-over-year revenue decline.
And while management maintains that U.S. tariffs have limited direct impact due to low exposure, they also concede that increased global competition and project delays — especially in the Americas — are pressuring growth.
Shrinking Footprint, Expanding Efficiencies
Zooming out, this is less about a U.S. retreat and more about a global retrenchment. The company’s transformation program, launched last fiscal year, aims to shed €40–50 million in costs by 2029. That includes shared service centers in Portugal and Serbia, SG&A cuts, and rethinking how R&D is structured.
Notably, the Components segment — which includes the Tridonic brand — continues to underperform, dragging margins down amid goodwill impairments and R&D write-downs. Lighting, while still profitable, is increasingly reliant on resilient pockets like Germany and Southern Europe.
The Highland factory shutdown may be old news to Inside Lighting readers, but December marks its final chapter. It also symbolizes a broader reality: Zumtobel’s global growth engine is sputtering, and the company is shifting from expansion to optimization mode.
