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On Holding Announces $1 Billion Share Buyback Program, Sets 2029 Growth Targets

ENTHMSVIIDZHZH-TWJAKOHI
Sep 22, 20262 min read
On Holding Announces $1 Billion Share Buyback Program, Sets 2029 Growth Targets

Summary

The Swiss sportswear company has authorized a share repurchase program of up to $1 billion through 2029 and unveiled ambitious new long-term financial goals at its investor day.

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Background

On Holding (NYSE: ONON) announced Tuesday that its board of directors has authorized a share repurchase program of up to $1 billion of its Class A ordinary shares. The program, revealed during the company's investor day, is set to run through December 31, 2029.

According to the company, the buyback is a key component of its capital allocation strategy. On Holding cited its strong balance sheet and cash-generative business model as enabling factors that allow it to return capital to its shareholders while continuing to invest in growth.

New Long-Term Ambitions

Alongside the repurchase plan, the Swiss sportswear maker presented a new set of financial targets for 2029. The company is aiming for significant growth over the next several years, supported by its expansion into new product categories.

Key 2029 financial ambitions include:

  • Net sales reaching at least CHF 5.6 billion.
  • High-teens constant-currency net sales growth.
  • A gross profit margin of at least 65%.
  • An adjusted EBITDA margin of at least 22%.
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Based on these targets, On anticipates its adjusted EBITDA will grow by more than 20% annually between 2026 and 2029. The company identified Run, Sneaker, and Apparel as near-term growth pillars, with further expansion planned in Football and Golf.

Updated Outlook

On Holding also reiterated its full-year 2026 guidance, projecting low-20% net sales growth on a constant-currency basis. It expects to maintain a gross margin of at least 65% and achieve an adjusted EBITDA margin between 19.5% and 20.0% for the year.

For the third quarter, the company forecasts constant-currency sales growth of approximately 17%. It also noted that up to $65 million in tariff refunds are expected to benefit its reported gross profit for the quarter. Additionally, On appointed Laura Miele, an existing board member and an executive at Electronic Arts, as its new lead independent director.

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