Bossard (BOSN) H1 2025 earnings summary

Executive summary

• Sales increased 7.6% year-over-year to CHF 547.9 million in H1 2025, driven by acquisitions and strong Asian demand, despite challenging geopolitical and economic conditions and a 1.3% organic sales decline.

• Europe saw growth from acquisitions, Asia posted double-digit sales growth, while America experienced an 11.4% sales decline.

• The group advanced digitalization, automation, and Smart Factory initiatives, with significant ERP rollout and AI-driven sales acceleration.

• Acquired Ferdinand Gross in Germany, adding EUR 80 million in annual sales and strengthening the railway sector presence.

• Navigated market volatility, with stabilization in Q1 but demand decline in Q2, especially in export-oriented sectors.

Financial highlights

• Net sales rose 7.6% to CHF 547.9 million; gross profit was CHF 178.6 million (margin 32.6%), adjusted margin 33.2%.

• Adjusted EBIT reached CHF 58.8 million (margin 10.7%), reported EBIT CHF 55.5 million (margin 10.1%).

• Net income declined to CHF 38.7 million (down 8.8% year-over-year).

• Free cash flow was negative, ranging from CHF -44.4 million to CHF -75.3 million, mainly due to acquisitions.

• Cash flow from operating activities before changes in working capital was CHF 56 million.

Outlook and guidance

• Focus on growth in railway, semiconductor, electronics, and aerospace sectors, with ambitions to grow above market average.

• Midterm targets: organic sales growth above 5%, EBIT margin 12%-15%, equity ratio around 40%, and dividend payout ratio of 40% of net income.

• Emphasis on pipeline conversion, ERP and AI deployment, and sustainability initiatives for 2025.

• Tariff impacts and geopolitical uncertainties make short-term forecasting difficult, especially for Q3.

• Commitment to medium-term financial goals and continued implementation of Strategy 200.