Burckhardt Compression (BCHN) H1 2025 earnings summary

Executive summary

• Achieved strong growth in order intake and sales, with profitability and value creation increasing year-over-year.

• Order intake reached CHF 615.2 mn (+5.8%), sales CHF 436.8 mn (+7.1%), and net income CHF 37.2 mn (+14.8%) compared to the same period last year.

• EBIT margin expanded to 11.8% (+0.8pp), with both Systems and Services divisions contributing to margin growth.

• Guidance for FY 2024 confirmed, with sales expected at CHF 1.0–1.1 bn and EBIT margin similar to FY 2023.

• Maintained resilience despite macroeconomic and geopolitical challenges, with limited impact from Middle East and Ukraine crises.

Financial highlights

• Gross profit rose 17.4% to CHF 127.9 mn, with gross margin up 2.6pp to 29.3% of sales.

• EPS increased 14.4% to CHF 10.99; tax rate slightly decreased to 24.8%.

• Cash flow from operating activities surged to CHF 64.5 mn, mainly due to improved net working capital and higher net income.

• Net financial position at CHF -66.2 mn, with borrowings slightly up due to bond refinancing.

• Equity ratio improved to 25.1% despite higher dividend payments and FX effects.

Outlook and guidance

• FY 2024 guidance reaffirmed: sales CHF 1.0–1.1 bn, EBIT margin similar to FY 2023, with stronger H2 expected.

• Mid-Range Plan 2023–2027 targets sales of CHF 1.2 bn, EBIT margin 12–15%, RONOA >25%, and dividend payout ratio of 50–70%.

• Expects a stronger H2 2024 in sales and EBIT due to project delivery timing.