Burckhardt Compression (BCHN) H2 2024 earnings summary

Executive summary

• Achieved record financials at group and divisional levels, surpassing guidance and enabling a proposed 29% dividend increase to CHF 15.5 per share.

• Order intake remained above CHF 1 billion for the second time, despite an 11.3% decrease year-over-year.

• Advanced on strategic initiatives, including sustainability, with a reduction in greenhouse gas emissions intensity (12% or 9% vs FY 2022).

• Launched BC Activate service, driving growth in the Services Division and supporting sustainability goals.

• Transformation towards sustainable energy applications advanced, with tangible progress in all business segments.

Financial highlights

• Sales increased by 26% in local currencies and 18.4% in Swiss francs to CHF 982.0 million year-over-year.

• EBIT reached a record CHF 121.4 million, with a group margin of 12.4%.

• Net income grew by 28.7% to CHF 90.1 million; EPS up 29% to CHF 26.63.

• R&D spending increased by 25% per year over five years.

• Gross margin declined by 2.8 percentage points due to product mix.

Outlook and guidance

• FY 2024 sales expected between CHF 1.0–1.1 billion; 2027 guidance raised by CHF 100 million to CHF 1.2 billion.

• EBIT margin for 2024 expected to remain at 2023 levels; 2027 EBIT target midpoint increased to CHF 162 million.

• Stronger second half expected in 2024 due to project delivery timing.

• Continued focus on energy transition applications and operational excellence.