Avolta (AVOL) Q1 2026 TU earnings summary

Executive summary

• Core turnover reached CHF 2,905m in Q1 2026, with reported turnover at CHF 2,962m and organic growth of 4.7% year-over-year; excluding the Middle East crisis, organic growth would have been 5.9%.

• Core EBITDA was CHF 190m, with a margin of 6.6%, up 0.2 percentage points year-over-year.

• Equity free cash flow was negative CHF 164m, impacted by seasonality, working capital from new operations, and Middle East effects.

• Leverage improved to 2.1x net debt to EBITDA, with net debt at CHF 2,724m as of March 31, 2026.

• Dividend of CHF 1.15 per share approved (+15% YoY), with a CHF 225m share buyback program underway.

Financial highlights

• Turnover grew 4.7% organically year-over-year; excluding Middle East, growth would be 5.9%.

• Core EBITDA margin improved by 0.2 percentage points to 6.6%.

• FX headwinds impacted turnover by 8.8%; at constant currency, EBITDA would have increased 8.5% year-over-year.

• Equity free cash flow at CHF -164m, impacted by CHF 50m inventory from Pudong and CHF 8m from Middle East crisis.

• CHF 30m share buyback executed under the ongoing program.

Outlook and guidance

• Medium-term outlook reconfirmed: organic turnover growth of 5–7%, EBITDA margin expansion of 20–40 basis points per year, and at least 100–150 basis points increase in equity free cash flow conversion.

• No change to capital allocation policy; focus remains on investment, deleveraging, and shareholder returns.

• Management expects FX headwinds to ease, with full-year impact estimated at -5%.

• Middle East conflict remains the primary headwind but is expected to be temporary.

• Management prepared to take targeted actions to protect profitability and cash flow.