Sulzer Annual Report 2024

2 Segment information

Segment information by division

	Flow		Services		Chemtech
millions of CHF	2024	2023	2024	2023	2024	2023
Order intake (unaudited) 1)	1’603.3	1’466.5	1’378.3	1’271.3	866.9	842.5

Sales 2)	1’444.3	1’354.4	1’249.1	1’154.8	837.1	772.5

Operational profit (unaudited)	137.4	108.2	186.7	171.3	118.0	95.0
Operational profitability (unaudited)	9.5%	8.0%	15.0%	14.8%	14.1%	12.3%

Restructuring expenses	–1.2	–2.1	–2.3	–0.7	–0.2	–0.3
Amortization	–25.8	–25.4	–4.6	–3.7	–6.9	–6.8
Impairments on tangible and intangible assets 3)	–	–0.1	–4.5	–0.0	–	–0.1
Non-operational items (unaudited) 4)	1.5	–6.5	–3.8	12.7	0.0	–2.9
EBIT	111.8	74.1	171.5	179.6	110.9	84.9

EBITDA	169.6	128.4	209.6	210.6	131.6	104.6
EBITDA as % of sales	11.7%	9.5%	16.8%	18.2%	15.7%	13.5%

Depreciation	–31.9	–28.8	–29.0	–27.3	–13.8	–12.8

Total assets as of December 31	1’495.9	1’427.7	1’078.1	944.4	633.1	533.2

Total liabilities as of December 31	750.3	718.6	488.8	411.2	473.6	409.1

Capital expenditure (incl. lease assets)	–44.5	–37.7	–46.0	–33.4	–38.6	–27.8

Employees (number of full-time equivalents) as of December 31	5’492	5’465	4’832	4’630	2’934	2’849

1) Order intake from external customers.

2) Sales from external customers.

3) An impairment of tangible assets is reported in the consolidated income statement in the line cost of goods sold.

4) The amounts reported in 2023 mainly consist of a gain on deconsolidation related to the Russian business of CHF 8.0 million, including the reclassification of the accumulated currency translation adjustments being allocated to the divisions.

Segment information by division

Total divisions

Others 5)

Total Sulzer

millions of CHF

2024

2023

2024

2023

2024

2023

Order intake (unaudited) 1)

3’848.6

3’580.3

–

3’848.6

3’580.3

Sales 2)

3’530.6

3’281.7

–

3’530.6

3’281.7

Operational profit (unaudited)

442.1

374.5

–5.9

–8.9

436.2

365.6

Operational profitability (unaudited)

12.5%

11.4%

n/a

12.4%

11.1%

Restructuring expenses

–3.7

–3.1

0.0

0.1

–3.7

–3.0

Amortization

–37.4

–35.9

–1.1

–0.7

–38.5

–36.6

Impairments on tangible and intangible assets 3)

–4.5

–0.2

–

–4.5

–0.2

Non-operational items (unaudited) 4)

–2.3

3.3

–4.7

0.5

–7.0

3.8

EBIT

394.2

338.6

–11.7

–9.0

382.5

329.7

EBITDA

510.9

443.6

–8.1

–5.7

502.7

437.9

EBITDA as % of sales

14.5%

13.5%

n/a

14.2%

13.3%

Depreciation

–74.7

–68.9

–2.4

–2.6

–77.1

–71.4

Total assets as of December 31

3’207.1

2’905.3

1’507.2

1’464.2

4’714.3

4’369.5

Total liabilities as of December 31

1’712.7

1’538.9

1’766.4

1’731.9

3’479.1

3’270.8

    
        Capital expenditure (incl. lease assets)
      
        –129.1
      
        –98.9
      
        –1.8
      
        –4.1
      
        –130.9
      
        –103.1

    
        Employees (number of full-time equivalents) as of December 31
      
        13’257
      
        12’944
      
        198
      
        186
      
        13’455
      
        13’130

1) Order intake from external customers.

2) Sales from external customers.

3) An impairment of tangible assets is reported in the consolidated income statement in the line cost of goods sold.

5) The most significant activities under “Others” relate to Corporate Center.

For the definition of operational profit, operational profitability, EBITDA, reference is made to the section “Supplementary information” and for the reconciliation statements to the section “Financial review”.

Information about reportable segments

Operating segments are determined based on the reports reviewed by the Chief Executive Officer that are used to measure performance, make strategic decisions and allocate resources to the segments. The business is managed on a divisional basis and the reported segments have been identified as follows:

Flow

The Flow division (renamed in 2024 from Flow Equipment) specializes in pumping solutions specifically engineered for the processes of its customers. The division provides pumps, agitators, compressors, grinders, screens and filters developed through intensive research and development in fluid dynamics and advanced materials. The focus is on pumping solutions for water, oil and gas, power, chemicals and most industrial segments.

Services

The Services division provides cutting-edge parts as well as maintenance and repair solutions for pumps, turbines, compressors, motors and generators through a network of over 100 service sites around the world. The division services Sulzer original equipment, but also all associated third-party rotating equipment run by customers, maximizing its sustainability and life cycle cost-effectiveness. The division’s technology-based solutions, fast execution and expertise in complex maintenance projects are available at its customers’ doorsteps.

Chemtech

The Chemtech division focuses on innovative mass transfer, static mixing and polymer solutions for chemicals, petrochemicals, refining and LNG. Chemtech also provides ecological solutions such as bio-based chemicals, polymers and fuels, recycling technologies for plastic as well as carbon capture and utilization / storage, contributing to a circular and sustainable economy. The division’s product offering ranges from process components to complete process plants and technology licensing.

Others

Certain expenses related to the Corporate Center are not attributable to a particular segment and are assessed as a whole across the group. Also included are the eliminations for total assets and liabilities.

The Chief Executive Officer primarily uses operational profit to assess the performance of the operating segments. However, the Chief Executive Officer also receives information about the segments’ order intake, sales, capital expenditures, EBIT and EBITDA on a monthly basis.

Sales from external customers reported to the Chief Executive Officer are measured in a manner consistent with the measurement in the income statement. There are no significant sales between the segments. No individual customer represents a significant portion of the group’s sales.

Segment information by region

The allocation of assets is based on their geographical location. Non-current assets exclude deferred income tax assets, non-current receivables, defined benefit assets and other non-current financial assets. The allocation of sales from external customers is based on the location of the customer.

Non-current assets by region

millions of CHF	2024	2023
Europe, the Middle East and Africa	842.9	831.5
– thereof Switzerland	222.2	227.0
– thereof United Kingdom	181.9	175.5
– thereof Finland	128.2	111.3
– thereof Sweden	100.2	112.4
– thereof the Netherlands	76.0	79.7

Americas	409.3	375.8
– thereof USA	367.3	335.5

Asia-Pacific	133.7	123.6
– thereof China	46.1	47.1

Total	1’385.8	1’330.9

Sales by region

	2024
millions of CHF	Flow	Services	Chemtech	Total Sulzer
Europe, the Middle East and Africa	624.6	460.3	188.2	1’273.1
– thereof United Kingdom	30.3	110.7	20.4	161.4
– thereof Saudi Arabia	83.4	31.6	27.8	142.9
– thereof Germany	63.9	48.0	29.7	141.5
– thereof France	35.6	30.5	5.0	71.0
– thereof United Arab Emirates	21.8	25.0	13.2	60.1
– thereof Switzerland	5.8	1.7	3.1	10.6

Americas	500.4	619.5	213.6	1’333.5
– thereof USA	314.8	483.7	157.4	955.9

Asia-Pacific	319.3	169.3	435.3	924.0
– thereof China	196.9	34.0	271.9	502.7

Total	1’444.3	1’249.1	837.1	3’530.6

	2023
millions of CHF	Flow	Services	Chemtech	Total Sulzer
Europe, the Middle East and Africa	607.7	446.5	191.8	1’246.0
– thereof United Kingdom	36.7	123.0	15.7	175.5
– thereof Saudi Arabia	91.1	32.4	30.7	154.2
– thereof Germany	60.6	46.1	39.3	145.9
– thereof France	34.7	36.4	8.2	79.3
– thereof Spain	43.1	5.9	5.4	54.5
– thereof Switzerland	1.4	2.0	2.7	6.0

Americas	452.8	561.2	185.8	1’199.8
– thereof USA	261.7	435.3	130.7	827.7

Asia-Pacific	293.9	147.2	394.9	836.0
– thereof China	177.7	24.7	266.7	469.1

Total	1’354.4	1’154.8	772.5	3’281.7

Segment information by market segment

The following table shows the allocation of sales from external customers by market segment.

Sales by market segment – Flow

millions of CHF	2024	2023 1)
Water & Industrial	873.6	867.4
Energy & Infrastructure	570.7	486.9
Total Flow	1’444.3	1’354.4

1) The comparative amounts for 2023 were restated and aligned with the market segment definition in 2024. The former market segments “Water” and “Industry” were combined to “Water & Industrial”, with Desalination now included in “Energy & Infrastructure”.

Sales by market segment – Services

millions of CHF	2024	2023 1)
Pumps Services	670.9	629.3
Turbo Services	366.7	324.2
Electromechanical Services	211.5	201.3
Total Services	1’249.1	1’154.8

1) The comparative amounts for 2023 were restated and aligned with the market segment definition in 2024 with the split of former market segment “Other Equipment” into two separate market segments named “Turbo Services” and “Electro-Mechanical Services”.

Sales by market segment – Chemtech

millions of CHF	2024	2023 1)
Mass Transfer Components & Services	558.5	552.0
System Solutions	278.6	220.6
Total Chemtech	837.1	772.5

1) The comparative figures for 2023 have been restated and aligned with the updated market segment definitions for 2024. Previous market segments “Water”, “Chemicals”, “Gas and Refining”, and “Renewables” were consolidated into two broader categories: “Mass Transfer Components & Services” (MTCS) and “System Solutions,” based on a defined allocation method. Additionally, the previous “Services” segment was exclusively allocated to MTCS.