Double-digit growth

Note: If not otherwise indicated, changes from the previous year are based on organic figures (adjusted for currency effects, acquisitions and divestitures / deconsolidations).

The Services division experienced strong demand in all regions, driven by the Americas and Asia, resulting in an increase in order intake of 12.5% (2023: 19.8%). Following record growth performance in 2023, the division achieved another year of double-digit growth in sales, up to 12.3%  (2023: 14.5%). Operational profitability increased only slightly to a high 15.0% (2023: 14.8%), due to the division’s investment in future growth and excellence initiatives.

Multi-product focus and regional expertise

In 2024, the Services division expanded its global footprint with new service facilities in India, Thailand, Malaysia, and Kuwait, while further strengthening its presence in North America through the acquisition of Texas Electrical Equipment Company (TEECO). It also continued meeting increasing customer demand for energy efficiency, technical upgrades and on-site improvements with its expanding portfolio of products and solutions.

The division provides a multi-faceted approach for high-value solutions across Turbomachinery, Electromechanical and Pump equipment, reinforcing its leadership in industrial services and long-term value creation. In 2024, Sulzer Services signed a five-year service agreement with PT Pertamina Geothermal Energy Tbk (PGE), underscoring its commitment to energy efficiency and operational excellence while contributing to Indonesia’s energy transition and security goals.

Services has been continuously developing advanced additive manufacturing technology to improve operational efficiencies, enabling reproduction of parts and components that may otherwise be unavailable or irreparable. In 2024, the division enhanced pump efficiency at a nuclear facility for a multinational electric utility company in Europe. This innovative approach reduced component production time by 75%, allowing for faster repairs and minimizing downtime. At the same time, the enhanced design extended the component’s lifetime by 33%, reducing the need for frequent replacements and supporting long-term reliability.

The division’s comprehensive multi-product portfolio is also serving growing demand for broad industrial service capabilities. Services was initially awarded a large power generation steam turbine repair, paving the way for the customer to entrust Sulzer with a significant generator service project. By handling both critical repairs under a single vendor, the customer’s downtime was held to a minimum and accelerated their return to full operations.

As the division reinforces its leadership by providing long-term value creation, it has also benefitted from market trends in energy efficiency and carbon neutrality giving rise to higher demand for technical upgrades and improvements at customers’ sites.

Key figures Services

Strong order intake growth across product lines

In 2024, all product lines recorded strong growth across regions, driving overall division growth of 12.5%. As a result of strong demand, the Americas and Asia-Pacific achieved double digit increases of 15.8% and 14.1%, respectively, closely followed by Europe, the Middle East and Africa (EMEA) which achieved 8.0% growth with a strengthened position in the market.

Improved operating margins

Sales grew to CHF 1’249.1 million in 2024 (up by 12.3%), driven by contributions from all regions. Retrofits and upgrades in the Pumps Services business played a pivotal role in this growth. Profitability rose marginally by 20 basis points to reach 15.0% as a result of investments in excellence initiatives and footprint expansion.

New division president

Ravin Pillay-Ramsamy was appointed President of the Services division and became a member of the Sulzer Executive Committee on October 1, 2024. With over nine years at Sulzer, Ravin Pillay-Ramsamy has held various leadership roles with increasing responsibilities across the globe. For more information, read his full biography in the Executive Committee chapter of the Corporate Governance report.

Safety performance in 2024

Sulzer Services’ accident frequency rate (AFR) was even lower in 2024 than in 2023 – with 0.4 cases per million working hours (2023: 0.9), half the industry standard of 1.0. The accident severity rate (ASR) also improved significantly to 6.6 lost days per million working hours (2023: 19.0). Building on the success of its “Stop Work for Safety” campaign, the division strengthened its proactive safety culture through a range of initiatives, including comprehensive training of ESH teams with a focus on root cause analysis and human error prevention. This initiative yielded remarkable results, with over 1’800 potential incidents prevented during the year.

In 2024, Sulzer continued to reinforce its commitment to workplace safety through its “Stop Work for Safety” campaign across the three divisions. Aimed at improving risk assessments and promoting work interventions where unsafe practices are observed, the 2024 campaign targeted the critical area of mechanical handling. Sulzer further prioritized its company-wide accident investigation capabilities, conducting comprehensive Accident Investigation Trainings, incorporating principles from the Human and Organizational Performance (HOP) and Learning from Normal Work concepts. These training efforts will continue throughout 2025, with a focus on equipping Sulzer’s global ESH management teams with the skills and insights needed to identify root causes, understand human error traps and implement effective corrective actions.

Abbreviations

EBIT: Earnings before interest and taxes
EBITDA: Earnings before interest, taxes, depreciation, amortization and impairment

For the definition of the alternative performance measures, please refer to “Supplementary information.”

Flow

Chemtech