Notes to the consolidated financial statements
1General information
Sulzer Ltd (the “companyˮ) is a company domiciled in Switzerland. The address of the company’s registered office is Neuwiesenstrasse 15 in Winterthur, Switzerland. The unaudited consolidated interim financial statements for the six months ended Jun 30, 2025, comprise the company and its subsidiaries (together referred to as the “groupˮ and individually as the “subsidiariesˮ) and the group’s interest in associates and joint ventures. Sulzer was founded in 1834 in Winterthur, Switzerland, and employs 13’453 people. The company serves clients in 160 production and service sites around the world. Sulzer Ltd is listed on SIX Swiss Exchange in Zurich, Switzerland (symbol: SUN).
Sulzer is a global leader in fluid engineering and chemical processing applications, developing innovative products and services that drive sustainable progress.
The consolidated interim financial statements have been prepared in accordance with the requirements of IAS 34 “Interim Financial Reporting". Details of the group’s accounting policies are described in note 12.
2Segment information
Segment information by divisions
|
|
|
Flow |
|
Services |
|
Chemtech |
||||||
|
millions of CHF |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Order intake 1) |
|
792.8 |
|
848.0 |
|
757.2 |
|
701.4 |
|
411.3 |
|
529.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales 2) |
|
757.3 |
|
712.1 |
|
657.1 |
|
592.6 |
|
329.5 |
|
394.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
92.8 |
|
83.4 |
|
109.6 |
|
97.0 |
|
38.8 |
|
57.8 |
|
EBITDA margin |
|
12.2% |
|
11.7% |
|
16.7% |
|
16.4% |
|
11.8% |
|
14.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization |
|
–13.1 |
|
–12.9 |
|
–2.4 |
|
–1.9 |
|
–3.7 |
|
–3.5 |
|
Impairments on tangible and intangible assets 3) |
|
– |
|
– |
|
– |
|
–4.6 |
|
– |
|
– |
|
Depreciation |
|
–14.8 |
|
–14.2 |
|
–14.8 |
|
–13.8 |
|
–7.2 |
|
–6.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT |
|
64.9 |
|
56.4 |
|
92.4 |
|
76.7 |
|
27.9 |
|
47.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
–3.4 |
|
–0.0 |
|
–0.3 |
|
–0.7 |
|
– |
|
–0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets as of June 30 / December 31 |
|
1’475.4 |
|
1’495.9 |
|
1’049.3 |
|
1’078.1 |
|
589.3 |
|
633.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities as of June 30 / December 31 |
|
741.6 |
|
750.3 |
|
460.1 |
|
488.8 |
|
394.1 |
|
473.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure (incl. lease assets) |
|
–18.5 |
|
–19.0 |
|
–21.5 |
|
–20.0 |
|
–13.9 |
|
–15.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees (number of full-time equivalents) as of June 30 / December 31 |
|
5’548 |
|
5’492 |
|
4’789 |
|
4’832 |
|
2’922 |
|
2’934 |
1) Order intake from external customers.
2) Sales from external customers.
3) The amounts reported in 2024 mainly consist of an impairment of tangible assets and was disclosed in the consolidated income statement in the line cost of goods sold.
Segment information by divisions
|
|
|
Total divisions |
|
Others 4) |
|
Total Sulzer |
||||||
|
millions of CHF |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Order intake 1) |
|
1’961.4 |
|
2’078.8 |
|
– |
|
0.0 |
|
1’961.4 |
|
2’078.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales 2) |
|
1’743.9 |
|
1’699.3 |
|
– |
|
0.0 |
|
1’743.9 |
|
1’699.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
241.1 |
|
238.3 |
|
9.9 |
|
–9.0 |
|
251.0 |
|
229.2 |
|
EBITDA margin |
|
13.8% |
|
14.0% |
|
n/a |
|
n/a |
|
14.4% |
|
13.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization |
|
–19.2 |
|
–18.3 |
|
–1.1 |
|
–0.5 |
|
–20.3 |
|
–18.8 |
|
Impairments on tangible and intangible assets 3) |
|
– |
|
–4.6 |
|
– |
|
0.0 |
|
– |
|
–4.6 |
|
Depreciation |
|
–36.7 |
|
–34.5 |
|
–1.2 |
|
–1.2 |
|
–38.0 |
|
–35.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT |
|
185.2 |
|
180.9 |
|
7.5 |
|
–10.7 |
|
192.7 |
|
170.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
–3.8 |
|
–1.5 |
|
– |
|
0.0 |
|
–3.8 |
|
–1.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets as of June 30 / December 31 |
|
3’114.0 |
|
3’207.1 |
|
1’385.0 |
|
1’507.2 |
|
4’499.0 |
|
4’714.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities as of June 30 / December 31 |
|
1’595.8 |
|
1’712.7 |
|
1’760.2 |
|
1’766.4 |
|
3’355.9 |
|
3’479.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure (incl. lease assets) |
|
–54.0 |
|
–54.3 |
|
–1.7 |
|
–1.9 |
|
–55.7 |
|
–56.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees (number of full-time equivalents) as of June 30 / December 31 |
|
13’259 |
|
13’257 |
|
194 |
|
198 |
|
13’453 |
|
13’455 |
1) Order intake from external customers.
2) Sales from external customers.
3) The amounts reported in 2024 mainly consist of an impairment of tangible assets and was disclosed in the consolidated income statement in the line cost of goods sold.
4) The most significant activities under “Others” relate to Corporate Center.
The Group has updated the information disclosed in the "Segment information" to align with current reporting reviewed by the Chief Executive Officer. The modification involves using a different profit measure.
The definitions of the Alternative Performance Measures (APM) remain unchanged (see "Supplementary information" in the Sulzer Annual Report 2024) and comparative information has not been restated. For the new APM EBITDA margin, added reference is made to the section "Supplementary information" of this report.
For the reconciliation refer 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 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 EBITDA to assess the performance of the operating segments. However, the Chief Executive Officer also receives information about the segments’ order intake, sales, capital expenditures and EBIT 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 sales from external customers is based on the location of the customer.
Sales by region
|
|
|
2025 |
||||||
|
millions of CHF |
|
Flow |
|
Services |
|
Chemtech |
|
Total Sulzer |
|
Europe, the Middle East and Africa |
|
352.5 |
|
228.5 |
|
92.5 |
|
673.4 |
|
– thereof Saudi Arabia |
|
60.9 |
|
16.2 |
|
16.1 |
|
93.2 |
|
– thereof United Kingdom |
|
13.6 |
|
62.5 |
|
5.3 |
|
81.4 |
|
– thereof United Arab Emirates |
|
54.8 |
|
12.0 |
|
13.6 |
|
80.4 |
|
– thereof Germany |
|
28.5 |
|
20.3 |
|
5.9 |
|
54.7 |
|
– thereof France |
|
18.2 |
|
16.6 |
|
3.3 |
|
38.2 |
|
– thereof Switzerland |
|
1.9 |
|
1.1 |
|
0.7 |
|
3.7 |
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
246.4 |
|
340.7 |
|
95.1 |
|
682.2 |
|
– thereof USA |
|
141.6 |
|
262.6 |
|
64.3 |
|
468.5 |
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
158.5 |
|
88.0 |
|
141.9 |
|
388.4 |
|
– thereof China |
|
100.7 |
|
15.4 |
|
77.3 |
|
193.4 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
757.3 |
|
657.1 |
|
329.5 |
|
1’743.9 |
|
|
|
2024 |
||||||
|
millions of CHF |
|
Flow |
|
Services |
|
Chemtech |
|
Total Sulzer |
|
Europe, the Middle East and Africa |
|
293.8 |
|
212.0 |
|
85.8 |
|
591.7 |
|
– thereof United Kingdom |
|
15.6 |
|
51.3 |
|
11.5 |
|
78.4 |
|
– thereof Germany |
|
32.4 |
|
23.0 |
|
17.8 |
|
73.1 |
|
– thereof Saudi Arabia |
|
41.7 |
|
15.3 |
|
12.6 |
|
69.5 |
|
– thereof France |
|
17.5 |
|
12.4 |
|
2.7 |
|
32.7 |
|
– thereof Spain |
|
21.1 |
|
3.2 |
|
2.5 |
|
26.8 |
|
– thereof Switzerland |
|
2.1 |
|
0.7 |
|
0.9 |
|
3.8 |
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
253.6 |
|
307.5 |
|
98.1 |
|
659.2 |
|
– thereof USA |
|
152.2 |
|
240.7 |
|
74.4 |
|
467.3 |
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
164.8 |
|
73.1 |
|
210.6 |
|
448.4 |
|
– thereof China |
|
111.3 |
|
14.6 |
|
145.2 |
|
271.2 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
712.1 |
|
592.6 |
|
394.5 |
|
1’699.3 |
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 |
|
2025 |
|
2024 |
|
Water & Industrial |
|
428.6 |
|
415.8 |
|
Energy & Infrastructure |
|
328.7 |
|
296.4 |
|
Total Flow |
|
757.3 |
|
712.1 |
Sales by market segment — Services
|
millions of CHF |
|
2025 |
|
2024 1) |
|
Pumps Services |
|
361.1 |
|
326.4 |
|
Turbo Services |
|
195.2 |
|
166.8 |
|
Electro-Mechanical Services |
|
100.8 |
|
99.4 |
|
Total Services |
|
657.1 |
|
592.6 |
1) The comparative amounts for 2024 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 |
|
2025 |
|
2024 1) |
|
Mass Transfer Components & Services |
|
224.4 |
|
276.5 |
|
System Solutions |
|
105.1 |
|
118.0 |
|
Total Chemtech |
|
329.5 |
|
394.5 |
1) The comparative figures for 2024 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.
3Acquisitions of businesses
Acquisitions in 2025
Davies and Mills Co.W.L.L
On January 30, 2025, Sulzer acquired 100% of Davies & Mills Co.W.L.L. ("Davies and Mills"), a Services business specializing in maintenance and repair for rotating equipment including generators, alternators, motors and pumps headquartered in Ras Zuwayed, Bahrain.
The total consideration amounted to CHF 12.3 million paid in cash at the date of the completion. Additional payments will be transferred upon completion of certain criteria on a yearly basis until 2028. A liability of CHF 0.7 million was recorded as an employee benefit in non-current and current provisions. These payments are not considered as part of the total consideration.
Cash flow from acquisition of subsidiaries
|
millions of CHF |
|
2025 |
|
2024 |
|
Cash consideration paid |
|
–12.3 |
|
–12.7 |
|
Cash acquired |
|
1.0 |
|
0.5 |
|
Total cash flow from acquisitions, net of cash acquired |
|
–11.3 |
|
–12.2 |
Contingent consideration
|
millions of CHF |
|
2025 |
|
2024 |
|
Balance as of January 1 |
|
- |
|
- |
|
Assumed in a business combination |
|
- |
|
2.9 |
|
Payment of contingent consideration 1) |
|
- |
|
–0.9 |
|
Release to other operating income |
|
– |
|
–2.0 |
|
Total contingent consideration as of June 30 / December 31 |
|
– |
|
– |
1) The amount paid was presented in the consolidated cash flow statement in the 2024 Annual Report under the line “Acquisitions of subsidiaries, net of cash acquired”.
4Financial instruments
The following tables present the carrying amounts and fair values of financial assets and liabilities as of June 30, 2025, and December 31, 2024, including their levels in the fair value hierarchy. For financial assets and financial liabilities not measured at fair value in the balance sheet, fair value information is not provided if the carrying amount is a reasonable approximation of fair value.
Fair values are categorized into three different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
The fair value of financial instruments traded in active markets, including outstanding bonds, is based on quoted market prices at the balance sheet date. Such instruments are included in level 1.
The fair values included in level 2 are based on valuation techniques using observable market input data. These may include discounted cash flow analysis, option pricing models or reference to other instruments that are substantially the same, while always making maximum use of market inputs and relying as little as possible on entity-specific inputs. The fair values of forward contracts are measured based on broker quotes for foreign exchange rates and interest rates.
Fair values measured using unobservable inputs are categorized within level 3 of the fair value hierarchy. The level 3 financial assets at fair value through profit or loss are non-current and comprise unquoted debt or equity instruments, including private equity and fund investments.
Financial assets at fair value through profit or loss - level 3
|
millions of CHF |
|
2025 |
|
2024 |
|
Balance as of January 1 |
|
22.2 |
|
22.0 |
|
Additions |
|
0.1 |
|
0.4 |
|
Divestments |
|
– |
|
–0.0 |
|
Realized fair value gains / (losses), net |
|
– |
|
–0.2 |
|
Unrealized fair value gains / (losses), net |
|
1.5 |
|
0.0 |
|
Total level 3 financial assets at fair value through profit or loss as of June 30 / December 31 |
|
23.8 |
|
22.2 |
Fair value table
|
|
|
|
|
June 30, 2025 |
||||||||||||||||||
|
|
|
|
|
Carrying amount |
|
Fair value |
||||||||||||||||
|
millions of CHF |
|
|
Fair value hedging instruments |
|
Fair value through profit or loss |
|
Fair value through other comprehensive income – equity instruments |
|
Financial assets at amortized cost |
|
Other financial liabilities |
|
Total carrying amount |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total fair value |
|
|
Financial assets measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial assets (at fair value) |
|
|
|
|
|
23.9 |
|
6.3 |
|
|
|
|
|
30.3 |
|
6.5 |
|
– |
|
23.8 |
|
30.3 |
|
Derivative assets – current |
|
|
|
9.6 |
|
|
|
|
|
|
|
|
|
9.6 |
|
– |
|
9.6 |
|
– |
|
9.6 |
|
Current financial assets (at fair value) |
|
|
|
|
|
0.0 |
|
|
|
|
|
|
|
0.0 |
|
0.0 |
|
– |
|
– |
|
0.0 |
|
Total financial assets measured at fair value |
|
|
|
9.6 |
|
24.0 |
|
6.3 |
|
– |
|
– |
|
39.9 |
|
6.5 |
|
9.6 |
|
23.8 |
|
39.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets not measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial assets (at amortized cost) |
|
|
|
|
|
|
|
|
|
3.2 |
|
|
|
3.2 |
|
|
|
|
|
|
|
|
|
Non-current receivables (excluding non-current derivative assets) |
|
|
|
|
|
|
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
|
|
|
|
|
|
|
|
635.0 |
|
|
|
635.0 |
|
|
|
|
|
|
|
|
|
Other current receivables (excluding current derivative assets and other taxes) |
|
|
|
|
|
|
|
|
|
12.8 |
|
|
|
12.8 |
|
|
|
|
|
|
|
|
|
Current financial assets (at amortized cost) |
|
|
|
|
|
|
|
|
|
0.4 |
|
|
|
0.4 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
921.6 |
|
|
|
921.6 |
|
|
|
|
|
|
|
|
|
Total financial assets not measured at fair value |
|
|
|
– |
|
– |
|
– |
|
1’573.6 |
|
– |
|
1’573.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities – current |
|
|
|
2.6 |
|
|
|
|
|
|
|
|
|
2.6 |
|
– |
|
2.6 |
|
– |
|
2.6 |
|
Total financial liabilities measured at fair value |
|
|
|
2.6 |
|
– |
|
– |
|
– |
|
– |
|
2.6 |
|
– |
|
2.6 |
|
– |
|
2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding non-current bonds |
|
|
|
|
|
|
|
|
|
|
744.2 |
|
744.2 |
|
756.8 |
|
– |
|
– |
|
756.8 |
|
|
Other non-current borrowings |
|
|
|
|
|
|
|
|
|
|
0.7 |
|
0.7 |
|
|
|
|
|
|
|
|
|
|
Other non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
7.4 |
|
7.4 |
|
|
|
|
|
|
|
|
|
Outstanding current bonds |
|
|
|
|
|
|
|
|
|
|
300.0 |
|
300.0 |
|
300.0 |
|
– |
|
– |
|
300.0 |
|
|
Other current borrowings and bank loans |
|
|
|
|
|
|
|
|
|
|
8.3 |
|
8.3 |
|
|
|
|
|
|
|
|
|
|
Trade accounts payable |
|
|
|
|
|
|
|
|
|
|
|
362.9 |
|
362.9 |
|
|
|
|
|
|
|
|
|
Other current liabilities (excluding current derivative liabilities and other taxes) |
|
|
|
|
|
|
|
|
|
|
503.5 |
|
503.5 |
|
|
|
|
|
|
|
|
|
|
Total financial liabilities not measured at fair value |
|
|
|
– |
|
– |
|
– |
|
– |
|
1’926.8 |
|
1’926.8 |
|
|
|
|
|
|
|
|
Fair value table
|
|
|
|
|
December 31, 2024 |
||||||||||||||||||
|
|
|
|
|
Carrying amount |
|
Fair value |
||||||||||||||||
|
millions of CHF |
|
|
Fair value hedging instruments |
|
Fair value through profit or loss |
|
Fair value through other comprehensive income – equity instruments |
|
Financial assets at amortized cost |
|
Other financial liabilities |
|
Total carrying amount |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total fair value |
|
|
Financial assets measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial assets (at fair value) |
|
|
|
|
|
22.4 |
|
4.7 |
|
|
|
|
|
27.1 |
|
4.9 |
|
– |
|
22.2 |
|
27.1 |
|
Derivative assets – current |
|
|
|
3.0 |
|
|
|
|
|
|
|
|
|
3.0 |
|
– |
|
3.0 |
|
– |
|
3.0 |
|
Current financial assets (at fair value) |
|
|
|
|
|
0.6 |
|
|
|
|
|
|
|
0.6 |
|
0.6 |
|
– |
|
– |
|
0.6 |
|
Total financial assets measured at fair value |
|
|
|
3.0 |
|
23.0 |
|
4.7 |
|
– |
|
– |
|
30.7 |
|
5.5 |
|
3.0 |
|
22.2 |
|
30.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets not measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial assets (at amortized cost) |
|
|
|
|
|
|
|
|
|
3.2 |
|
|
|
3.2 |
|
|
|
|
|
|
|
|
|
Non-current receivables (excluding non-current derivative assets) |
|
|
|
|
|
|
|
|
|
1.9 |
|
|
|
1.9 |
|
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
|
|
|
|
|
|
|
|
680.2 |
|
|
|
680.2 |
|
|
|
|
|
|
|
|
|
Other current receivables (excluding current derivative assets and other taxes) |
|
|
|
|
|
|
|
|
|
18.2 |
|
|
|
18.2 |
|
|
|
|
|
|
|
|
|
Current financial assets (at amortized cost) |
|
|
|
|
|
|
|
|
|
0.4 |
|
|
|
0.4 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
1’060.6 |
|
|
|
1’060.6 |
|
|
|
|
|
|
|
|
|
Total financial assets not measured at fair value |
|
|
|
– |
|
– |
|
– |
|
1’764.5 |
|
– |
|
1’764.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities – current |
|
|
|
10.3 |
|
|
|
|
|
|
|
|
|
10.3 |
|
– |
|
10.3 |
|
– |
|
10.3 |
|
Total financial liabilities measured at fair value |
|
|
|
10.3 |
|
– |
|
– |
|
– |
|
– |
|
10.3 |
|
– |
|
10.3 |
|
– |
|
10.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding non-current bonds |
|
|
|
|
|
|
|
|
|
|
744.0 |
|
744.0 |
|
759.5 |
|
– |
|
– |
|
759.5 |
|
|
Other non-current borrowings |
|
|
|
|
|
|
|
|
|
|
1.0 |
|
1.0 |
|
|
|
|
|
|
|
|
|
|
Other non-current liabilities (excluding non-current derivative liabilities) |
|
|
|
|
|
|
|
|
|
|
|
7.3 |
|
7.3 |
|
|
|
|
|
|
|
|
|
Outstanding current bonds |
|
|
|
|
|
|
|
|
|
|
299.9 |
|
299.9 |
|
299.7 |
|
– |
|
– |
|
299.7 |
|
|
Other current borrowings and bank loans |
|
|
|
|
|
|
|
|
|
|
12.1 |
|
12.1 |
|
|
|
|
|
|
|
|
|
|
Trade accounts payable |
|
|
|
|
|
|
|
|
|
|
|
388.2 |
|
388.2 |
|
|
|
|
|
|
|
|
|
Other current liabilities (excluding current derivative liabilities and other taxes) |
|
|
|
|
|
|
|
|
|
|
465.8 |
|
465.8 |
|
|
|
|
|
|
|
|
|
|
Total financial liabilities not measured at fair value |
|
|
|
– |
|
– |
|
– |
|
– |
|
1’918.4 |
|
1’918.4 |
|
|
|
|
|
|
|
|
5Other operating income and expenses
|
millions of CHF |
|
2025 |
|
2024 |
|
Gain from sale of property, plant and equipment |
|
1.2 |
|
0.2 |
|
Other operating income |
|
3.0 |
|
– |
|
Total other operating income |
|
4.1 |
|
0.3 |
|
|
|
|
|
|
|
Cost for mergers and acquisitions |
|
–0.4 |
|
–1.3 |
|
Loss from sale of property, plant and equipment |
|
–0.1 |
|
–0.3 |
|
Loss from deconsolidation of subsidiaries |
|
– |
|
–0.1 |
|
Operating currency exchange losses, net |
|
–7.3 |
|
–4.1 |
|
Other operating expenses |
|
– |
|
–3.2 |
|
Total other operating expenses |
|
–7.8 |
|
–9.0 |
|
|
|
|
|
|
|
Total other operating income / (expenses), net |
|
–3.7 |
|
–8.7 |
Other operating income includes income from litigation cases, insurance claims, government grants and incentives, as well as recharges to third parties not qualifying as sales to customers.
6Financial income and expenses
|
millions of CHF |
|
2025 |
|
2024 |
|
Interest and securities income |
|
6.3 |
|
8.4 |
|
Interest income on employee benefit plans |
|
0.7 |
|
1.3 |
|
Total interest and securities income |
|
7.0 |
|
9.7 |
|
Interest expenses on borrowings and lease liabilities |
|
–12.0 |
|
–11.7 |
|
Interest expenses on employee benefit plans |
|
–2.2 |
|
–2.4 |
|
Total interest expenses |
|
–14.2 |
|
–14.1 |
|
Total interest income / (expenses), net |
|
–7.2 |
|
–4.4 |
|
|
|
|
|
|
|
Income from investments and other financial assets |
|
0.0 |
|
– |
|
Fair value changes |
|
0.5 |
|
–11.4 |
|
Other financial income / (expenses) |
|
–0.2 |
|
0.4 |
|
Currency exchange gains / (losses), net |
|
–7.7 |
|
3.7 |
|
Total other financial income / (expenses), net |
|
–7.3 |
|
–7.3 |
|
|
|
|
|
|
|
Total financial income / (expenses), net |
|
–14.5 |
|
–11.8 |
|
- thereof fair value changes on financial assets at fair value through profit or loss |
|
0.5 |
|
–11.4 |
|
- thereof other income / (expenses) from financial assets at fair value through profit or loss |
|
0.0 |
|
0.0 |
|
- thereof interest income on financial assets at amortized costs |
|
6.3 |
|
8.4 |
|
- thereof other financial income / (expenses) |
|
–0.2 |
|
0.4 |
|
- thereof currency exchange gains / (losses), net |
|
–7.7 |
|
3.7 |
|
- thereof interest expenses on borrowings |
|
–10.3 |
|
–10.3 |
|
- thereof interest expenses on lease liabilities |
|
–1.7 |
|
–1.4 |
|
- thereof interest expenses on employee benefit plans, net |
|
–1.5 |
|
–1.1 |
In the first half of 2025, total financial expenses, net, amounted to CHF 14.5 million, compared with CHF 11.8 million in H1 2024.
Total interest and securities income amounted to CHF 7.0 million in H1 2025 (H1 2024: CHF 9.7 million). The decrease compared with the prior year mainly results from lower variable interest rates on deposits and cash positions.
The fair value changes are largely related to derivative financial instruments that are classified as financial assets or financial liabilities at fair value through profit and loss and that are used as hedging instruments to hedge foreign exchange risks.
Currency exchange gains/losses are mainly related to foreign currency differences of non-operating assets and liabilities recorded at the prevailing rate at the time of acquisition (or the preceding year-end closing rate) as against the current balance sheet rate.
7Income taxes
Income tax expense is recognized at an amount that is determined by multiplying the profit before tax for the interim reporting period by management’s best estimate of the weighted average annual income tax rate expected for the full financial year, adjusted for the tax effect of certain items recognized in full in the interim period. Income tax expenses comprise current and deferred tax. Sulzer’s estimated average annual tax rate for 2025 is 24.2%, compared with 24.9% for the six months ending June 30, 2024.
Sulzer is subject to the global minimum top-up tax under Pillar Two legislation. The top-up tax mainly relates to subsidiaries in Bahrain and Qatar, where the statutory tax rate is below 15%. The top-up tax was immaterial in the first half of 2025 due to the transitional save harbors or substance-based carve-outs.
Domestic top-up tax legislation was enacted in Switzerland and became applicable from January 1, 2024. The legislation includes only Qualified Domestic Top-up Tax (“QDMTT").
The international top-up tax legislation (so called “Income Inclusion Rule (IIR)”) was enacted and became applicable from January 1, 2025. Financial years starting on January 1, 2025, are subject to IIR.
Sulzer has applied the temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax. The group recognizes the top-up tax as current tax when it incurs it.
8Equity
The share capital amounts to CHF 342’623.70, made up of 34’262’370 shares with dividend entitlement and a par value of CHF 0.01. All shares are fully paid in and registered. On June 30, 2025, conditional share capital amounted to CHF 17’000 (December 31, 2024: CHF 17’000), consisting of 1’700’000 shares with a par value of CHF 0.01.
Treasury shares
In the first half year 2025, the group acquired 128’500 treasury shares for CHF 18.8 million. The total number of treasury shares held by Sulzer Ltd as of June 30, 2025, was 529’760 shares (December 31, 2024: 509’455 shares).
The treasury shares are mainly held for the purpose of issuing shares under the management share-based payment programs.
Dividends
On April 23, 2025, the Annual General Meeting approved an ordinary dividend of CHF 4.25 (2024: ordinary dividend of CHF 3.75) per share to be paid out of reserves. The dividend was paid to shareholders on April 29, 2025. The total amount of the dividend to shareholders of Sulzer Ltd was CHF 143.6 million (2024: CHF 127.3 million), thereof paid dividends of CHF 97.3 million (2024: CHF 86.5 million) and unpaid dividends of CHF 46.2 million (2024: CHF 40.8 million). The unpaid dividends are reflected in the balance sheet position “Other current and accrued liabilitiesˮ (see note 11).
9Borrowings
|
|
|
2025 |
||||
|
millions of CHF |
|
Non-current borrowings |
|
Current borrowings |
|
Total |
|
Balance as of January 1 |
|
745.0 |
|
312.0 |
|
1’057.1 |
|
Cash flow from proceeds |
|
– |
|
24.4 |
|
24.4 |
|
Cash flow for repayments |
|
– |
|
–27.5 |
|
–27.5 |
|
Changes in amortized costs |
|
0.2 |
|
0.1 |
|
0.3 |
|
Reclassifications |
|
–0.4 |
|
0.4 |
|
– |
|
Currency translation differences |
|
–0.0 |
|
–1.1 |
|
–1.2 |
|
Total borrowings as of June 30 |
|
744.8 |
|
308.3 |
|
1’053.1 |
|
|
|
2024 |
||||
|
millions of CHF |
|
Non-current borrowings |
|
Current borrowings |
|
Total |
|
Balance as of January 1 |
|
795.2 |
|
261.1 |
|
1’056.3 |
|
Acquired through business combination |
|
1.6 |
|
1.3 |
|
2.9 |
|
Cash flow from proceeds |
|
249.3 |
|
42.3 |
|
291.6 |
|
Cash flow for repayments |
|
– |
|
–293.3 |
|
–293.3 |
|
Changes in amortized costs |
|
0.3 |
|
0.1 |
|
0.4 |
|
Reclassifications 1) |
|
–301.3 |
|
300.2 |
|
–1.1 |
|
Currency translation differences |
|
–0.0 |
|
0.3 |
|
0.3 |
|
Total borrowings as of December 31 |
|
745.0 |
|
312.0 |
|
1’057.1 |
1) Including a reclass to other non-current liabilities of CHF -0.9 million and to other current and accrued liabilities of CHF -0.2 million.
Outstanding bonds
|
|
|
2025 |
|
2024 |
||||
|
millions of CHF |
|
Amortized costs |
|
Nominal |
|
Amortized costs |
|
Nominal |
|
0.875% 07/2016–07/2026 |
|
125.0 |
|
125.0 |
|
125.0 |
|
125.0 |
|
0.800% 09/2020–09/2025 |
|
300.0 |
|
300.0 |
|
299.9 |
|
300.0 |
|
0.875% 11/2020–11/2027 |
|
199.9 |
|
200.0 |
|
199.8 |
|
200.0 |
|
3.350% 12/2022–11/2026 |
|
169.9 |
|
170.0 |
|
169.8 |
|
170.0 |
|
1.773% 10/2024–10/2028 |
|
249.4 |
|
250.0 |
|
249.3 |
|
250.0 |
|
Total as of June 30 / December 31 |
|
1’044.2 |
|
1’045.0 |
|
1’043.9 |
|
1’045.0 |
|
– thereof non-current |
|
744.2 |
|
745.0 |
|
744.0 |
|
745.0 |
|
– thereof current |
|
300.0 |
|
300.0 |
|
299.9 |
|
300.0 |
All outstanding bonds are traded on SIX Swiss Exchange.
As of June 2025, Sulzer has access to a syndicated credit facility of CHF 500 million maturing in December 2026. The facility includes two one-year extension options and a further option to increase the credit facility by CHF 250 million (subject to lenders’ approval). In 2022 and 2023, the group exercised the options, extending the term of the credit facility in the amount of CHF 415 million to December 2028. The facility is subject to financial covenants based on net financial indebtedness and EBITDA, which were adhered to throughout the reporting period. As of June 30, 2025 and December 31, 2024 the syndicated facility was not used.
10Provisions
|
|
|
2025 |
||||||||||
|
millions of CHF |
|
Other employee benefits |
|
Warranties / liabilities |
|
Restructuring |
|
Environmental |
|
Other |
|
Total |
|
Balance as of January 1 |
|
35.7 |
|
98.3 |
|
3.4 |
|
12.4 |
|
40.1 |
|
189.9 |
|
Acquired through business combination |
|
0.2 |
|
– |
|
– |
|
– |
|
– |
|
0.2 |
|
Additions |
|
4.2 |
|
17.7 |
|
4.0 |
|
– |
|
5.9 |
|
31.9 |
|
Released as no longer required |
|
–0.3 |
|
–6.9 |
|
–0.2 |
|
– |
|
–3.2 |
|
–10.7 |
|
Utilized |
|
–4.3 |
|
–9.2 |
|
–2.4 |
|
– |
|
–3.8 |
|
–19.7 |
|
Reclassification |
|
– |
|
0.6 |
|
– |
|
– |
|
–1.4 |
|
–0.8 |
|
Currency translation differences |
|
–2.3 |
|
–6.3 |
|
–0.1 |
|
–0.2 |
|
–1.9 |
|
–10.8 |
|
Total provisions as of June 30 |
|
33.1 |
|
94.2 |
|
4.7 |
|
12.2 |
|
35.8 |
|
180.0 |
|
– thereof non-current |
|
19.5 |
|
2.7 |
|
0.4 |
|
12.2 |
|
9.6 |
|
44.4 |
|
– thereof current |
|
13.7 |
|
91.5 |
|
4.3 |
|
0.0 |
|
26.2 |
|
135.7 |
The category “Other employee benefitsˮ includes provisions for jubilee gifts, and other obligations to employees.
The category “Warranties / liabilitiesˮ includes provisions for warranties, customer claims, penalties, litigation and legal cases relating to goods delivered or services rendered. Warranties that provide customers with assurance that the product complies with the agreed specifications are accounted for as provisions over the agreed warranty period.
In the first half of 2025, the group utilized CHF 2.4 million of restructuring provisions, mainly relating to the reorganization of the Flow division. The remaining restructuring provisions as of June 30, 2025 amount to CHF 4.7 million, of which CHF 4.3 million is expected to be utilized within one year.
“Environmentalˮ mainly consists of expected costs related to inherited liabilities.
“Otherˮ includes provisions that do not fit into the aforementioned categories. A large number of these provisions refer to onerous contracts and indemnities, in particular related to divestitures. In addition, provisions for ongoing asbestos lawsuits and other legal claims are included. Based on the currently known facts, the group estimates that resolution of the open cases will not have material effects on its liquidity or financial condition. Although the group expects a large part of the category “Otherˮ to be realized in one year, by their nature, the amounts and timing of any cash outflows are difficult to predict.
11Other current and accrued liabilities
|
millions of CHF |
|
2025 |
|
2024 |
|
Liability related to the purchase of treasury shares |
|
90.6 |
|
90.4 |
|
Outstanding dividend payments |
|
364.2 |
|
318.0 |
|
Taxes (VAT, withholding tax) |
|
34.2 |
|
41.9 |
|
Derivative financial instruments |
|
2.6 |
|
10.3 |
|
Other current liabilities |
|
48.7 |
|
57.3 |
|
Total other current liabilities as of June 30 / December 31 |
|
540.2 |
|
518.0 |
|
|
|
|
|
|
|
Contract-related costs |
|
117.9 |
|
136.3 |
|
Salaries, wages and bonuses |
|
83.8 |
|
140.1 |
|
Vacation and overtime claims |
|
29.9 |
|
26.6 |
|
Other accrued liabilities |
|
150.8 |
|
154.2 |
|
Total accrued liabilities as of June 30 / December 31 |
|
382.4 |
|
457.2 |
|
|
|
|
|
|
|
Total other current and accrued liabilities as of June 30 / December 31 |
|
922.6 |
|
975.2 |
Outstanding dividend payments amounted to CHF 364.2 million (December 31, 2024: CHF 318.0 million), which is an increase of CHF 46.2 million. For further details on dividends, refer to note 8.
12Accounting policies
12.1 Basis of preparation
These interim financial statements have been prepared in accordance with the requirements of IAS 34 Interim Financial Reporting. The accounting policies applied are consistent with those applied in the consolidated financial statements for the year 2024 and the corresponding interim reporting period, except for the adoption of new and amended standards, as set out below.
These interim financial statements do not include all the notes of the type normally included in an annual financial report. Accordingly, these financial statements are to be read in conjunction with the financial statements for the year ended December 31, 2024 and any public announcements made by Sulzer during the interim reporting period.
The preparation of these interim financial statements requires management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results in the future could differ from such estimates. A description of information that requires significant judgements to be made by Management and the key sources of estimation uncertainty, is disclosed in note 5, Critical accounting estimates and judgments, in the December 31, 2024 consolidated financial statements.
Due to rounding, numbers presented throughout this report may not add up precisely to the total provided. All ratios, percentages and variances are calculated using the underlying amount rather than the presented rounded amount.
12.2 Change in accounting policies
a) Standards, amendments, and interpretations that are effective for 2025
Starting from January 1, 2025, the group applied changes in standards, amendments and interpretations that became effective from January 1, 2025. These include:
- Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates - The amendments provide guidance on how to assess whether a currency is exchangeable and how to determine the spot exchange rate when it is not. The Group concluded that the impact on the consolidated financial statements is not material.
b) Standards, amendments, and interpretations issued but not yet effective
In 2025, the group has not adopted early any standard, amendment, or interpretation issued but not yet effective. The following relevant amendments will become effective from January 1, 2026. The group does not expect these to have a material impact on the consolidated financial statements:
- Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosure – The amendments include clarification about the date on which a financial liability is derecognized in case of a settlement via electronic cash transfers, as well as clarification about the classification of financial assets with features linked to environmental, social and corporate governance (ESG). The amendments will become effective from January 1, 2026.
- Annual Improvements to IFRS Standards 2023 – Amendments to IFRS 9 Financial Instruments – These minor amendments clarify the initial measurement of trade receivables and contract assets when they include a significant financing component, aligning IFRS 9 with IFRS 15 and how a lessee applies derecognition requirements to lease liabilities. The amendments will become effective from January 1, 2026.
The following relevant new standards will become effective after December 31, 2026. The group is currently in the process of analyzing the impacts on the consolidated financial statements:
- IFRS 18 Presentation and Disclosure in Financial Statements – The new standard introduces a defined structure for the statement of profit or loss as well as additional disclosure requirements on the statement of profit or loss. The new standard will become effective from January 1, 2027.
13Subsequent events after the balance sheet date
The Board of Directors authorized these consolidated interim financial statements for issue on July 23, 2025. At the time when these consolidated interim financial statements were authorized for issue, the Board of Directors and the Executive Committee were not aware of any other events that would materially affect these financial statements.