Forbo (FORN) H2 2025 earnings summary

Executive summary

• Net sales declined to CHF 1,085.4 million in 2025, a 3.3% decrease year-over-year in reporting currency and 0.3% in local currencies, reflecting challenging market conditions in construction and currency headwinds.

• Operating profit (EBIT) dropped 27.2% to CHF 87.8 million, with net income down 27.5% to CHF 68.9 million.

• Leadership transitions completed, with new Chairman, CEO, and CFO appointments effective January and July 2026.

• Production capacities expanded in Japan and the US to enhance supply chain resilience.

• The Board proposes an unchanged dividend of CHF 25.00 per share.

Financial highlights

• Net sales decreased by 3.3% to CHF 1,085.4 million; net sales in local currencies nearly flat at -0.3%.

• Operating profit (EBIT) dropped 27.2% to CHF 87.8 million; EBIT margin fell to 8.1% from 10.7%.

• Earnings per share fell 27.7% to CHF 48.75.

• Free cash flow fell to CHF 31.7 million from CHF 91.8 million; operating cash flow was CHF 74.0 million.

• Equity ratio improved to 66.8% from 64.1%, with a net cash position and no debt.

Outlook and guidance

• 2026 environment expected to remain challenging, especially in construction sectors in Europe and the US.

• Strategic focus on customer orientation, innovation, operational excellence, and cost discipline.

• New executive leadership and new plants in Japan and the US, with product launches planned.

• Guidance for 2026: slightly lower sales due to currency effects, but profit expected to be slightly above 2025.

• No early adoption of IFRS 18; implementation expected to impact presentation but not key profit metrics.