Notes Group - Sulzer Midyear Report 2026

1 General 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, 2026, 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 13’311 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.

2 Segment information

Segment information by divisions

	Flow 3)		Services		Chemtech 3)
millions of CHF	2026	2025	2026	2025	2026	2025
Order intake 1)	789.5	815.1	711.7	757.2	285.3	389.0

Sales 2)	742.5	772.8	645.0	657.1	285.0	314.0

EBITDA 4)	98.5	94.7	114.3	109.6	33.4	36.8
EBITDA margin 4)	13.3%	12.3%	17.7%	16.7%	11.7%	11.7%

Amortization	–12.7	–13.1	–2.2	–2.4	–3.5	–3.6
Impairments on tangible and intangible assets	–	–	–	–	–	–
Depreciation	–15.5	–15.1	–15.1	–14.8	–7.4	–6.9

EBIT 4)	70.2	66.5	97.0	92.4	22.5	26.3

Restructuring expenses	–6.2	–3.4	0.1	–0.3	–	-

Total assets as of June 30 / December 31	1’650.7	1’540.0	1’170.2	1’056.8	551.9	569.8

Total liabilities as of June 30 / December 31	816.3	810.9	522.9	461.0	334.5	359.4

Capital expenditure (incl. lease assets)	–21.8	–18.9	–36.7	–21.5	–10.6	–13.6

Employees (number of full-time equivalents) as of June 30 / December 31	5’535	5’604	4’872	4’855	2’444	2’736

1) Order intake from external customers.

2) Sales from external customers.

3) The comparative figures for 2025 have been restated and aligned to reflect the focus on Water Treatment expertise in 2026. The “FRC” business, formerly included under “System Solutions” in the Chemtech division has been transferred to the Flow division and is now reported under “Water and Industrial”.

4) In 2026, the impact of a new initiative associated with Sulzer 2028 was allocated exclusively to “Others”, as they were not attributable to the Divisions’ profit measures (EBIT, EBITDA, and EBITDA margin). This reflects consistency with the current and prior year consolidated financial statements.

Segment information by divisions

Total divisions

Others 3)

Total Sulzer

millions of CHF

2026

2025

2026

2025

2026

2025

Order intake 1)

1’786.6

1’961.4

–

-

1’786.6

1’961.4

Sales 2)

1’672.6

1’743.9

–

-

1’672.6

1’743.9

EBITDA 4)

246.2

241.1

12.5

9.9

258.7

251.0

EBITDA margin 4)

14.7%

13.8%

n/a

15.5%

14.4%

Amortization

–18.4

–19.2

–1.2

–1.1

–19.6

–20.3

Impairments on tangible and intangible assets

–

-

–

-

–

-

Depreciation

–38.1

–36.7

–1.8

–1.2

–39.9

–38.0

EBIT 4)

189.7

185.2

9.4

7.5

199.1

192.7

Restructuring expenses

–6.1

–3.8

–

-

–6.1

–3.8

Total assets as of June 30 / December 31

3’372.8

3’166.6

1’350.1

1’396.3

4’722.9

4’562.9

Total liabilities as of June 30 / December 31

1’673.6

1’631.2

1’723.4

1’626.2

3’397.0

3’257.5

    
        Capital expenditure (incl. lease assets)
      
        –69.1
      
        –54.0
      
        –3.2
      
        –1.7
      
        –72.4
      
        –55.7

    
        Employees (number of full-time equivalents) as of June 30 / December 31
      
        12’852
      
        13’195
      
        460
      
        330
      
        13’311
      
        13’526

1) Order intake from external customers.

2) Sales from external customers.

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

4) In 2026, the impact of a new initiative associated with Sulzer 2028 was allocated exclusively to “Others”, as they were not attributable to the Divisions’ profit measures (EBIT, EBITDA, and EBITDA margin). This reflects consistency with the current and prior year consolidated financial statements.

For the definition of operating income (EBIT), EBITDA, EBITDA margin please refer to "Supplementary information" in the Sulzer Annual Report 2025.

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 global activities and non-business transactions, such as holding and financing activities, are reported under “Other”. This category also includes Corporate Center expenses that are not attributable to a specific segment and are therefore assessed at the Group level.

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

	2026
millions of CHF	Flow	Services	Chemtech	Total Sulzer
Europe, the Middle East and Africa	335.6	234.7	102.6	672.8
– thereof Saudi Arabia	66.3	19.7	4.8	90.7
– thereof United Arab Emirates	14.3	19.0	39.4	72.7
– thereof United Kingdom	17.2	49.8	1.2	68.1
– thereof Germany	29.5	16.6	6.6	52.6
– thereof France	18.0	14.3	8.9	41.2
– thereof Switzerland	1.7	1.8	5.4	8.8

Americas	245.5	341.0	66.2	652.7
– thereof USA	141.1	260.1	44.1	445.3

Asia-Pacific	161.5	69.3	116.2	347.0
– thereof China	110.2	10.7	63.6	184.5

Total	742.5	645.0	285.0	1’672.6

	2025
millions of CHF	Flow 1)	Services	Chemtech 1)	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	261.8	340.7	79.7	682.2
– thereof USA	154.1	262.6	51.7	468.5

Asia-Pacific	158.5	88.0	141.9	388.4
– thereof China	100.7	15.4	77.3	193.4

Total	772.8	657.1	314.0	1’743.9

1) The comparative figures for 2025 have been restated and aligned to reflect the focus on Water Treatment expertise in 2026. The “FRC” business, formerly included under “System Solutions” in the Chemtech division has been transferred to the Flow division and is now reported under “Water and Industrial”.

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	2026	2025 1)
Water & Industrial	432.4	444.1
Energy & Infrastructure	310.2	328.7
Total Flow	742.5	772.8

1) The comparative figures for 2025 have been restated and aligned to reflect the focus on Water Treatment expertise in 2026. The “FRC” business, formerly included under “System Solutions” in the Chemtech division has been transferred to the Flow division and is now reported under “Water and Industrial”.

Sales by market segment — Services

millions of CHF	2026	2025
Pumps Services	334.2	361.1
Turbo Services	198.6	195.2
Electro-Mechanical Services	112.1	100.8
Total Services	645.0	657.1

Sales by market segment — Chemtech

millions of CHF	2026	2025 1)
Mass Transfer Components & Services	184.4	224.4
System Solutions	100.7	89.7
Total Chemtech	285.0	314.0

1) The comparative figures for 2025 have been restated and aligned to reflect the focus on Water Treatment expertise in 2026. The “FRC” business, formerly included under “System Solutions” in the Chemtech division has been transferred to the Flow division and is now reported under “Water and Industrial”.

3 Acquisitions of businesses

Acquisitions in 2026

Dansk Overpumpning A/S

On February 16, 2026, Sulzer acquired an ownership of 100 percent in Dansk Overpumpning A/S ("Dansk Overpumpning"), a Flow rental company specializing in engineered wastewater pump solutions, headquartered in Slagelse, Denmark. The total consideration amounted to CHF 3.6 million, of which CHF 2.6 million was paid in cash at the date of the transaction and CHF 1.0 million relate to contingent considerations to be paid over 3 years.

Cash flow from acquisition of subsidiaries

millions of CHF	2026	2025
Cash consideration paid	–2.6	–12.3
Cash acquired	0.7	1.0
Payments for acquisitions in prior years	–1.0	–
Total cash flow from acquisitions, net of cash acquired	–2.9	–11.3

Contingent consideration

millions of CHF	2026	2025
Balance as of January 1	2.8	5.2
Assumed in a business combination	1.0	2.8
Unrealized fair value gain /(loss), net	0.2	0.4
Reclassifications	–	–0.7
Payment of contingent consideration 1)	–1.0	–0.9
Release to other operating income	–	–3.9
Total contingent consideration as of June 30 / December 31	2.9	2.8
– thereof non-current	1.7	1.8
– thereof current	1.2	1.0

1) The amount paid was presented in the consolidated cash flow statement under the line “Acquisitions of subsidiaries, net of cash acquired”.

4 Financial instruments

The following tables present the carrying amounts and fair values of financial assets and liabilities as of June 30, 2026, and December 31, 2025, 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 equity instruments, including private equity and fund investments.

The fair value of the level 3 financial assets is determined based on the Group’s share of the net assets of the investee, as reported by its management. This approach reflects a net asset value method and incorporates unobservable inputs inherent in the valuation of the underlying assets and liabilities.

Sensitivity analyses were performed with regards to the reported net asset value. A 5% increase in the reported net assets would result in a corresponding increase in fair value of CHF 0.9 million, while a 5% decrease would result in a corresponding reduction in fair value of CHF 0.9 million.

Financial assets at fair value through profit or loss - level 3

millions of CHF	2026	2025
Balance as of January 1	22.4	22.2
Additions	0.3	0.5
Divestments	–0.1	–1.2
Realized and unrealized fair value gains / (losses), net	–1.8	1.4
Currency translation differences	0.3	–0.5
Total level 3 financial assets at fair value through profit or loss as of June 30 / December 31	21.1	22.4

Fair value table

		June 30, 2026
		Carrying amount						Fair value
millions of CHF	Notes	Fair value hedging instruments	Fair value through profit or loss	Financial assets at 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)			21.3	4.3			25.6	4.5	–	21.1	25.6
Derivative assets – current		5.1					5.1	–	5.1	–	5.1
Current financial assets (at fair value)			0.0				0.0	0.0	–	–	0.0
Total financial assets measured at fair value		5.1	21.3	4.3	–	–	30.7	4.5	5.1	21.1	30.7

Financial assets not measured at fair value
Other non-current financial assets (at amortized cost)					3.5		3.5
Non-current receivables					1.4		1.4
Trade accounts receivable					628.4		628.4
Other current receivables (excluding current derivative assets and other taxes)					12.8		12.8
Current financial assets (at amortized cost)					0.1		0.1
Cash and cash equivalents					843.2		843.2
Total financial assets not measured at fair value		–	–	–	1’489.3	–	1’489.3

Financial liabilities measured at fair value
Derivative liabilities – current		14.4					14.4	–	14.4	–	14.4
Contingent consideration	3		2.9				2.9	–	–	2.9	2.9
Total financial liabilities measured at fair value		14.4	2.9	–	–	–	17.3	–	14.4	2.9	17.3

Financial liabilities not measured at fair value
Outstanding non-current bonds	9					778.9	778.9	788.3	–	–	788.3
Other non-current liabilities (excluding non-current derivative liabilities and contingent considerations)						0.9	0.9
Outstanding current bonds	9					294.9	294.9	296.7	–	–	296.7
Other current borrowings and bank loans	9					4.9	4.9
Trade accounts payable						381.6	381.6
Other current liabilities (excluding current derivative liabilities, other taxes and contingent considerations)	11					411.1	411.1
Total financial liabilities not measured at fair value		–	–	–	–	1’872.3	1’872.3	1’085.0	–	–	1’085.0

Fair value table

		December 31, 2025
		Carrying amount						Fair value
millions of CHF	Notes	Fair value hedging instruments	Fair value through profit or loss	Financial assets at 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)			22.6	6.0			28.6	6.2	–	22.4	28.6
Derivative assets – current		5.1					5.1	–	5.1	–	5.1
Current financial assets (at fair value)			0.0				0.0	0.0	–	–	0.0
Total financial assets measured at fair value		5.1	22.6	6.0	–	–	33.7	6.2	5.1	22.4	33.7

Financial assets not measured at fair value
Other non-current financial assets (at amortized cost)					3.3		3.3
Non-current receivables					1.2		1.2
Trade accounts receivable					628.7		628.7
Other current receivables (excluding current derivative assets and other taxes)					9.3		9.3
Current financial assets (at amortized cost)					0.1		0.1
Cash and cash equivalents					927.3		927.3
Total financial assets not measured at fair value		–	–	–	1’569.9	–	1’569.9

Financial liabilities measured at fair value
Derivative liabilities – current		4.6					4.6	–	4.6	–	4.6
Contingent considerations	3		2.8				2.8	–	–	2.8	2.8
Total financial liabilities measured at fair value		4.6	2.8	–	–	–	7.3	–	4.6	2.8	7.3

Financial liabilities not measured at fair value
Outstanding non-current bonds	9					778.7	778.7	787.9	–	–	787.9
Other non-current borrowings	9					0.6	0.6
Other non-current liabilities (excluding non-current derivative liabilities and contingent considerations)						0.9	0.9
Outstanding current bonds	9					294.9	294.9	298.9	–	–	298.9
Other current borrowings and bank loans	9					10.0	10.0
Trade accounts payable						386.4	386.4
Other current liabilities (excluding current derivative liabilities, other taxes and contingent considerations)	11					336.1	336.1
Total financial liabilities not measured at fair value		–	–	–	–	1’807.6	1’807.6	1’086.9	–	–	1’086.9

5 Other operating income and expenses

millions of CHF	2026	2025
Gain from sale of property, plant and equipment	0.1	1.2
Other operating income	8.0	3.0
Total other operating income	8.1	4.1

Cost for mergers and acquisitions	–0.6	–0.4
Loss from sale of property, plant and equipment	–0.2	–0.1
Operating currency exchange losses, net	–5.0	–7.3
Total other operating expenses	–5.8	–7.8

Total other operating income / (expenses), net	2.3	–3.7

Other operating income includes income from litigation cases, insurance claims, government grants, refunds and incentives, as well as recharges to third parties not qualifying as sales to customers.

Other operating expenses include mainly currency exchanges losses on operating assets and liabilities.

6 Financial income and expenses

millions of CHF	2026	2025
Interest and securities income	3.3	6.3
Interest income on employee benefit plans	1.2	0.7
Total interest and securities income	4.5	7.0
Interest expenses on borrowings and lease liabilities	–13.3	–12.0
Interest expenses on employee benefit plans	–2.1	–2.2
Total interest expenses	–15.3	–14.2
Total interest income / (expenses), net	–10.8	–7.2

Income from investments and other financial assets	1.0	–
Fair value changes	–9.3	0.5
Other financial income / (expenses)	0.1	–0.2
Currency exchange gains / (losses), net	–1.7	–7.7
Total other financial income / (expenses), net	–9.8	–7.3

Total financial income / (expenses), net	–20.7	–14.5
- thereof fair value changes on financial assets at fair value through profit or loss	–9.3	0.5
- thereof other income from financial assets at fair value through profit or loss	1.0	–
- thereof interest income on financial assets at amortized costs	3.3	6.3
- thereof other financial income / (expenses)	0.1	–0.2
- thereof currency exchange gains / (losses), net	–1.7	–7.7
- thereof interest expenses on borrowings	–10.9	–10.3
- thereof interest expenses on lease liabilities	–2.3	–1.7
- thereof interest expenses on employee benefit plans, net	–0.9	–1.5

In the first half of 2026, total financial expenses, net, amounted to CHF 20.7 million, compared with CHF 14.5 million in H1 2025.

Total interest and securities income amounted to CHF 4.5 million in H1 2026 (H1 2025: CHF 7.0 million). The decrease compared with the prior year mainly results from lower variable interest rates on deposits and cash positions.

The line fair value changes mainly includes losses on fair value changes of derivative financial instruments used as hedging instruments to hedge foreign exchange risks amounting to CHF 7.5 million in H1 2026 (H1 2025: CHF 1.5 million) as well as losses from fair value changes of investments in financial instruments classified at fair value through profit or loss of CHF 1.8 million in H1 2026 (H1 2025: gains of CHF 2.0 million).

The line income from investments and other financial assets includes a dividend income from financial assets at fair value through profit or loss of CHF 1.0 million in H1 2026 (H1 2025: CHF 0.0 million).

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.

7 Income 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 2026 is 22.0%, compared with 24.2% for the six months ending June 30, 2025.

Sulzer is subject to the global minimum top-up tax under Pillar Two legislation. The top-up tax mainly relates to subsidiaries in United Arab Emirates, Bahrain, Ireland and Qatar, where the statutory tax rate is below 15% and top-up tax is levied on Sulzer under the Income Inclusion Rule or Domestic Minimum top-up tax. The Group recognized a top-up tax expense of CHF 0.5 million in H1 2026 (H1 2025: CHF 0.0 million).

Domestic top-up tax legislation, including the Qualified Domestic Minimum Top-up Tax (“QDMTT”), was enacted in Switzerland and became applicable from January 1, 2024. In addition, international top-up tax legislation (the “Income Inclusion Rule (IIR)”) was enacted and became applicable for financial years starting on or after January 1, 2025.

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.

8 Equity

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, 2026, conditional share capital amounted to CHF 17’000 (December 31, 2025: CHF 17’000), consisting of 1’700’000 shares with a par value of CHF 0.01.

Treasury shares

During the first half year of 2026, the group did not acquire any treasury shares. The total number of treasury shares held by Sulzer Ltd as of June 30, 2026, was 404’580 shares (December 31, 2025: 524’796 shares).

The treasury shares are mainly held for the purpose of issuing shares under the management share-based payment programs.

Dividends

On April 15, 2026, the Annual General Meeting approved an ordinary dividend of CHF 4.75 (2025: ordinary dividend of CHF 4.25) per share to be paid out of reserves. The dividend was paid to shareholders on April 21, 2026. The total amount of the dividend to shareholders of Sulzer Ltd was CHF 160.8 million (2025: CHF 143.6 million), thereof paid dividends of CHF 81.3 million (2025: CHF 97.3 million) and unpaid dividends of CHF 79.4 million (2025: CHF 46.2 million). The unpaid dividends are reflected in the balance sheet position “Other current and accrued liabilitiesˮ (see note 11).

9 Borrowings

	2026
millions of CHF	Non-current borrowings	Current borrowings	Total
Balance as of January 1	779.3	304.9	1’084.2
Cash flow from proceeds	–	33.1	33.1
Cash flow for repayments	–	–38.8	–38.8
Changes in amortized costs	0.2	0.0	0.2
Reclassifications	–0.6	0.6	–
Currency translation differences	0.0	–0.1	–0.1
Total borrowings as of June 30	778.9	299.7	1’078.7

	2025
millions of CHF	Non-current borrowings	Current borrowings	Total
Balance as of January 1	745.0	312.0	1’057.1
Acquired through business combination	–	0.3	0.3
Cash flow from proceeds	329.2	51.4	380.6
Cash flow for repayments	–	–352.7	–352.7
Changes in amortized costs	0.3	0.1	0.5
Reclassifications	–295.3	295.3	–
Currency translation differences	–0.0	–1.4	–1.5
Total borrowings as of December 31	779.3	304.9	1’084.2

Outstanding bonds

	2026		2025
millions of CHF	Amortized costs	Nominal	Amortized costs	Nominal
0.875% 07/2016–07/2026	125.0	125.0	125.0	125.0
0.875% 11/2020–11/2027	199.9	200.0	199.9	200.0
3.350% 12/2022–11/2026	169.9	170.0	169.9	170.0
1.773% 10/2024–10/2028	249.6	250.0	249.5	250.0
1.138% 09/2025–09/2029	229.6	230.0	229.5	230.0
1.365% 09/2025–09/2032	99.7	100.0	99.7	100.0
Total as of June 30 / December 31	1’073.8	1’075.0	1’073.6	1’075.0
– thereof non-current	778.9	780.0	778.7	780.0
– thereof current	294.9	295.0	294.9	295.0

All outstanding bonds are traded on SIX Swiss Exchange.

As of June 2026, 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, 2026 and December 31, 2025 the syndicated facility was not used.

10 Provisions

	2026
millions of CHF	Other employee benefits	Warranties / liabilities	Restructuring	Environmental	Other	Total
Balance as of January 1	36.2	92.5	3.0	12.2	31.9	175.8
Additions	6.4	14.5	6.2	–	5.4	32.5
Released as no longer required	–0.3	–13.0	–0.1	–	–4.5	–17.8
Utilized	–4.5	–9.4	–1.8	–0.1	–3.2	–19.0
Currency translation differences	0.4	1.5	–0.0	0.3	0.2	2.4
Total provisions as of June 30	38.2	86.1	7.4	12.4	29.9	173.9
– thereof non-current	20.2	8.9	0.5	12.3	8.2	50.1
– thereof current	18.0	77.2	6.9	0.0	21.7	123.8

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 2026, the group utilized CHF 1.8 million of restructuring provisions, mainly relating to the reorganization of the Flow division. The remaining restructuring provisions as of June 30, 2026 amount to CHF 7.4 million, of which CHF 6.9 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.

11 Other current and accrued liabilities

millions of CHF	2026	2025
Liability related to the purchase of treasury shares	90.9	90.4
Outstanding dividend payments	276.4	197.0
Taxes (VAT, withholding tax)	50.0	41.4
Derivative financial instruments	14.4	4.6
Contingent consideration	1.2	1.0
Other current liabilities	43.8	48.7
Total other current liabilities as of June 30 / December 31	476.8	383.0

Contract-related costs	99.8	101.9
Salaries, wages and bonuses	84.1	121.3
Vacation and overtime claims	31.3	26.1
Other accrued liabilities	189.0	160.7
Total accrued liabilities as of June 30 / December 31	404.3	410.0

Total other current and accrued liabilities as of June 30 / December 31	881.1	793.1

Outstanding dividend payments amounted to CHF 276.4 million (December 31, 2025: CHF 197.0 million), which is an increase of CHF 79.4 million. For further details on dividends, refer to note 8.

12 Accounting 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 2025 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, 2025 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 4, Critical accounting estimates and judgments, in the December 31, 2025 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 2026

Starting from January 1, 2026, the group applied the relevant standards, amendments and interpretations that became effective on that date. These include:

Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: 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).
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 do not include a significant financing component, aligning IFRS 9 with IFRS 15 and how a lessee applies derecognition requirements to lease liabilities.

These changes had no material impact on the Group's overall results and financial position.

b) Standards, amendments, and interpretations issued but not yet effective

The Group has not early adopted any standard, amendment or interpretation issued but not yet effective in these consolidated financial statements. The following relevant new standard will become effective for annual periods beginning on or after January 1, 2027:

IFRS 18 Presentation and Disclosure in Financial Statements – IFRS 18 will replace IAS 1 and will become effective from January 1, 2027.

The accounting standard introduces new requirements to the presentation structure of the financial statements as well as additional disclosure requirements, including additional disclosures for management-defined performance measures (MPMs). To prepare for first-time application in 2027, the Group has updated its accounting and reporting processes to enable the preparation of comparative information in accordance with IFRS 18. Based on the assessment performed to date, the Group expects IFRS 18 to primarily affect presentation and disclosure, including changes to the structure of the consolidated income statement, the presentation of certain items within the income statement, the statement of cash flows, including the use of operating profit or loss as the starting point for the indirect method, and related note disclosures, including disclosures for management-defined performance measures. IFRS 18 will be applied retrospectively and, accordingly, the comparative 2026 information will be restated when the standard is first applied in 2027.

The Group is still in the process of assessing the impact of the new accounting standard, particularly with respect to the structure of the consolidated income statement, the consolidated statement of cash flows and the additional disclosures required for MPMs. The Group is also assessing the impact of how information is grouped in the consolidated financial statements, including for items currently labelled as 'other'.

13 Subsequent events after the balance sheet date

Following the bond placement in June 2026, Sulzer issued in July 2026 a CHF 205 million four-year bond with a coupon of 1.105% p.a. and a CHF 175 million seven-year bond with a coupon of 1.420% p.a.; both bonds were issued at par. On July 10, 2026, Sulzer repaid its CHF 125 million bond issued in 2016.

The assets and liabilities presented as held for sale at June 30, 2026 relate to the Vessel Internal Electrostatic Coalescer (VIEC) business of Sulzer Pumps Wastewater Norway AS, which was divested on July 16, 2026.

To address the challenging market conditions, at the beginning of July 2026, the Company decided to implement a further restructuring program in the Chemtech division designed to simplify the organizational structure and reallocate resources towards strategic growth opportunities. The program is expected to result in an impairment of CHF 8.0 million and restructuring charges in the low single digit millions and will be substantially completed by the end of 2026.

The Board of Directors authorized these consolidated interim financial statements for issue on July 27, 2026. 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.

Notes to the consolidated financial statements

1 General information

2 Segment information

Segment information by divisions

Segment information by divisions

Information about reportable segments

Flow

Services

Chemtech

Others

Segment information by region

Sales by region

Segment information by market segment

Sales by market segment — Flow

Sales by market segment — Services

Sales by market segment — Chemtech

3 Acquisitions of businesses

Acquisitions in 2026

Dansk Overpumpning A/S

Cash flow from acquisition of subsidiaries

Contingent consideration

4 Financial instruments

Financial assets at fair value through profit or loss - level 3

Fair value table

Fair value table

5 Other operating income and expenses

6 Financial income and expenses

7 Income taxes

8 Equity

Treasury shares

Dividends

9 Borrowings

Outstanding bonds

10 Provisions

11 Other current and accrued liabilities

12 Accounting policies

12.1 Basis of preparation

12.2 Change in accounting policies

a) Standards, amendments, and interpretations that are effective for 2026

b) Standards, amendments, and interpretations issued but not yet effective

13 Subsequent events after the balance sheet date