Strong sales growth and profitability
Note: Unless otherwise indicated, changes from the previous year are based on organic figures (adjusted for currency effects, acquisitions / divestitures and deconsolidations).
Sulzer demonstrated resilience and operational strength in a challenging market environment, delivering a strong operational performance in the first half of 2025. Sales grew by 6.3% year-on-year in H1 2025, supported by a healthy backlog conversion. Through sustained efforts and focus on "Sulzer Excellence," Sulzer achieved a strong profitability, with an EBITDA margin of 14.4% (H1 2024: 13.5%), up 90 basis points. Order intake for the first half of the year was -2.4% compared with the same period in the previous year (H1 2024: 8.9%) on the back of a strong 2024. Free cash flow totaled CHF 43.2 million, representing a decrease of CHF 12.2 million from the first half of 2024 (H1 2024: CHF 55.4). This was mainly due to customer project delays resulting in higher inventories, coupled with the negative impact of currency translations.
Slightly lower order intake in H1
Geopolitical uncertainties have caused customer investment delays, which impacted order intake timing. This resulted in an order intake decrease of 2.4% to CHF 1’961.4 million compared with H1 2024. Excluding the currency conversion impact, the order intake would have been CHF 2’035.2 million. The gross profit margin on order intake improved by 210 basis points, reaching 36.3%.
Orders
|
millions of CHF |
|
2025 |
|
2024 |
|
Change in +/– |
|
+/–% organic 1) |
|
Order intake |
|
1’961.4 |
|
2’078.8 |
|
–117.4 |
|
–2.4 |
|
Order intake gross margin |
|
36.3% |
|
34.2% |
|
2.1 |
|
|
|
Order backlog as of June 30 / December 31 |
|
2’327.5 |
|
2’300.0 |
|
27.5 |
|
|
1) Adjusted for acquisition, divestiture / deconsolidation and currency effects.
In the Flow division, order intake declined by 3.1%, compared with 6.3% growth in H1 2024. The Water and Industrial business achieved solid growth of 5.0%, whereas the Energy and Infrastructure business decreased by 13.2% due to one exceptionally large order received in H1 2024. Order intake in the Services division continued to benefit from demand for higher efficiency and reliability in energy infrastructure and the company’s growing presence in the Middle East, delivering year-on-year order growth of 12.0% (H1 2024: 12.6%). The increase was primarily supported by a 25.0% rise in the Europe, Middle East and Africa region, and 7.9% in the Americas; the Asia-Pacific region registered an 8.7% year-on-year decline. Following strong order intake growth of 8.3% in H1 2024, Chemtech’s order intake was highly impacted by project postponements in H1 2025 caused by uncertainties in the global market conditions and overcapacity of refineries in Asia. This resulted in a decrease of 20.3% on a year-on-year basis.
Sulzer enters the second half of 2025 with a solid order backlog of CHF 2’327.5 million (December 31, 2024: CHF 2’300.0 million). Excluding the currency conversion impact, the order backlog would have been CHF 2’502.4 million.
Despite headwinds from geopolitical uncertainties, our continued focus on 'Sulzer Excellence' enabled us to deliver a strong performance, demonstrating the resilience and the strength of our strategy. Based on our expectations, we confirm our full-year guidance.”
Thomas ZicklerChief Financial Officer
Sales reached CHF 1’743.9 million in the first half of 2025, an increase of 6.3% compared with H1 2024. The increase was mainly a result of a strong focus on delivery of large orders and disciplined backlog execution. Excluding the currency conversion impact, sales would have been CHF 1’812.7 million.
The Services division was the main contributor to the sales growth, registering a strong increase of 14.8% compared with H1 2024. All regions achieved double-digit growth on the back of strong demand for repairs and retrofits. Sales in the Flow division grew by 10.3%. This was mainly driven by 15.7% growth in the Energy and Infrastructure business, whereas the Water and Industrial business grew by 6.6%. In Chemtech, sales were down by 13.6%, primarily resulting from backlog phasing and a lower year-on-year book-to-bill ratio.
Stable gross profit margin
Reported gross profit margin amounted to 33.6%, 10 basis points below the 33.7% reported in H1 2024, impacted by lower share of high margin business, partly offset by improvements from "Sulzer Excellence." Supported by higher sales volume, gross profit totaled CHF 585.4 million, representing a year-on-year growth of 6.4% for the first half of 2025. Gross profit would have been CHF 610.0 million without the negative impact of currency conversion.
EBITDA margin reaches 14.4%
For the half-year ending 30 June 2025, EBITDA totaled CHF 251.0 million compared with CHF 229.2 million in H1 2024. This represents an EBITDA margin improvement of 90 basis points year-on-year, from 13.5% in 2024 to 14.4% in 2025. The EBITDA growth reflects the combined effect of higher revenue generation coupled with improved operational efficiencies, underscoring the commitment to sustainable growth and "Sulzer Excellence."
EBITDA margin (January 1 – June 30)
|
millions of CHF |
|
2025 |
|
2024 |
|
+/–% organic 1) |
|
EBITDA |
|
251.0 |
|
229.2 |
|
15.9 |
|
Sales |
|
1’743.9 |
|
1’699.3 |
|
6.3 |
|
EBITDA margin |
|
14.4% |
|
13.5% |
|
|
1) Adjusted for acquisition, divestiture / deconsolidation and currency effects.
EBITDA margin in the Flow division increased from 11.7% in H1 2024 to 12.2%, up 50 basis points in a year-on-year comparison. In the Services division, EBITDA margin reached 16.7%, up 30 basis points in a year-on-year comparison, as a result of ongoing investments in sales excellence. Chemtech reported EBITDA margin of 11.8%, down 290 basis points from 14.7% reported in H1 2024.
Bridge from EBITDA to EBIT (January 1 – June 30)
|
millions of CHF |
|
2025 |
|
2024 |
|
Change in +/– |
|
EBITDA |
|
251.0 |
|
229.2 |
|
21.8 |
|
Amortization |
|
–20.3 |
|
–18.8 |
|
–1.5 |
|
Impairments on tangible and intangible assets |
|
– |
|
–4.6 |
|
4.6 |
|
Depreciation |
|
–38.0 |
|
–35.7 |
|
–2.3 |
|
EBIT |
|
192.7 |
|
170.1 |
|
22.6 |
Financial result
As of June 30, 2025, total net financial expenses reached CHF 14.5 million, compared with CHF 11.8 million reported in H1 2024. Net interest expenses increased to CHF 7.2 million, compared with CHF 4.4 million in H1 2024, primarily due to a decline in interest income. Fair value changes, mainly associated with hedging instruments, contributed a positive effect of CHF 0.5 million (H1 2024: CHF -11.4 million). Net currency exchange losses were CHF 7.7 million, compared with net currency gains of CHF 3.7 million reported in H1 2024.
Effective tax rate at 24.2%
For 2025, the estimated average annual tax rate is projected at 24.2%, below the 24.9% reported on June 30, 2024. In the first half of 2025, income tax expenses totaled CHF 40.9 million compared with CHF 38.9 million in H1 2024, primarily driven by an increase in taxable income.
Growing net income and core net income
Net income rose to CHF 128.2 million in the first half of 2025 compared with CHF 117.4 million in H1 2024. Core net income, which excludes restructuring expenses, amortization, impairments, non-operational items and the tax-adjusted effects of such items, totaled CHF 143.6 million for the first half of 2025, above the CHF 135.2 million reported in H1 2024. Basic earnings per share increased to CHF 3.77 for the six-month period ended June 30, 2025, from CHF 3.44 in the prior-year period, reflecting improved profitability.
Bridge from net income to core net income
|
millions of CHF |
|
2025 |
|
2024 |
|
Change in +/– |
|
Net income |
|
128.2 |
|
117.4 |
|
10.8 |
|
Amortization |
|
20.3 |
|
18.8 |
|
1.5 |
|
Impairments on tangible and intangible assets |
|
- |
|
4.6 |
|
–4.6 |
|
Restructuring expenses |
|
3.8 |
|
1.5 |
|
2.3 |
|
Non-operational items 1) |
|
–3.7 |
|
–1.5 |
|
–2.2 |
|
Tax impact on above items |
|
–5.0 |
|
–5.5 |
|
0.5 |
|
Core net income |
|
143.6 |
|
135.2 |
|
8.4 |
1) Non-operational items include significant acquisition related expenses, gains and losses from the sale or closure of businesses and certain non-operational items that are non-recurring or do not regularly occur in similar magnitude.
Key balance sheet positions
Unless otherwise indicated, balance sheet movements from the previous year are based on nominal figures.
Total assets as of June 30, 2025, totaled CHF 4’499.0 million, a decrease of CHF 215.3 million compared with December 31, 2024.
Non-current assets amounted to CHF 1’661.3 million, down by CHF 54.2 million primarily driven by a CHF 21.2 million decrease in goodwill resulting mainly from currency translations, coupled with a reduction in property, plant and equipment and lease assets of CHF 20.2 million, offset by an increase in defined benefits assets of CHF 29.2 million.
Current assets decreased by CHF 161.1 million to CHF 2’837.7 million, mainly driven by a decrease of CHF 45.2 million relating to trade receivables. In addition, total cash and cash equivalents decreased to CHF 921.6 million (CHF 1’060.6 million in December 2024), mainly as a result of higher operational cash outflows, higher dividend payments and foreign currency translation impacts on our cash balances.
Total liabilities decreased by CHF 123.2 million to CHF 3’355.9 million as of June 30, 2025. The main reason was a decrease of CHF 52.5 million in other current and accrued liabilities. Trade accounts payable decreased by CHF 25.3 million and current income tax liabilities decreased by CHF 11.1 million.
Equity decreased by CHF 92.1 million to CHF 1’143.1 million. This was mainly driven by dividend distributions of CHF 144.5 million, coupled with CHF 106.8 million from negative currency translation and treasury shares purchases of CHF 18.8 million, partly offset by the higher net income of CHF 128.2 million.
Free cash flow
In the first half of the year, free cash flow amounted to CHF 43.2 million compared with CHF 55.4 million reported in H1 2024, on the back of customer project delays resulting in higher inventories, coupled with the negative impact of currency translation.
Bridge from cash flow from operating activities to free cash flow
|
millions of CHF |
|
2025 |
|
2024 |
|
Change in +/– |
|
Cash flow from operating activities |
|
79.7 |
|
97.9 |
|
–18.3 |
|
Purchase of intangible assets |
|
–0.9 |
|
–4.7 |
|
3.7 |
|
Proceeds from the sale of intangible assets |
|
0.1 |
|
– |
|
0.1 |
|
Purchase of property, plant and equipment |
|
–38.2 |
|
–39.0 |
|
0.8 |
|
Proceeds from the sale of property, plant and equipment |
|
2.6 |
|
1.2 |
|
1.4 |
|
Free cash flow (FCF) |
|
43.2 |
|
55.4 |
|
–12.2 |
In the first six months of 2025, cash outflows from investing activities amounted to CHF 40.6 million, compared with CHF 51.0 million in H1 2024. This was mostly influenced by CHF 38.2 million cost for purchases of property, plant and equipment.
Cash outflow from financing activities amounted to CHF 135.8 million, compared with CHF 113.6 million in H1 2024. Dividend payments amounted to CHF 97.3 million, compared with CHF 86.5 million in H1 2024. The net change in cash and cash equivalents since January 1, 2025, amounted to CHF -139.0 million, including foreign exchange losses on cash and cash equivalents of CHF 42.3 million.
Outlook for 2025
Based on our expectations, we are confident that we will achieve our full-year profitability above 15% of sales, up from 14.2% in 2024, with year-on-year organic growth of 2% to 5% for order intake and of 5% to 8% for sales.
Abbreviations
EBIT: Earnings before interest and taxes
EBITDA: Earnings before interest, taxes, depreciation and amortization
FCF: Free cash flow
For the definitions of the alternative performance measures, please refer to “Supplementary information” in the Annual Report 2024. For the definition of EBITDA margin, please refer to to "Supplementary information" of this report.