Ascom (ASCN) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was CHF 140 million, flat at constant currencies (+0.2%) but down 1.5% at actual currencies due to market volatility and FX headwinds, especially in the U.S. and Canada.

• EBITDA margin improved by 1.2 percentage points year-over-year to 8.6%, driven by cost reduction and operational efficiency.

• Net profit was CHF 2.2 million, lower than last year due to unrealized FX losses on intercompany loans.

• Cash position strengthened to CHF 29.5 million, supported by reduced working capital and lower CapEx.

• Organizational restructuring and new regional model implemented, with visible impact from cost efficiency programs.

Financial highlights

• Net revenue for H1 2025 was CHF 140 million, down 1.5% year-over-year in actual currencies but flat at constant currencies.

• EBITDA increased by 15% to CHF 12.1 million; gross margin improved from 47.3% to 48%.

• Order intake declined by 5.7% year-over-year, with a book-to-bill ratio of 1.12 and order backlog of CHF 309.6 million.

• Net working capital reduced by CHF 8.5 million; CapEx down by 40% to CHF 5.5 million.

• Free cash flow reached CHF 15.8 million; net cash flow from operating activities was CHF 21.2 million.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: low single-digit revenue growth at constant currencies and EBITDA margin of 9-10%.

• Expectation of stronger second half due to seasonality, strong backlog, and healthy project pipeline.

• Underlying mid-term growth drivers remain intact despite temporary market volatility.