Georg Fischer (GF) H2 2024 earnings summary

Executive summary

• Achieved solid profitability in 2024 despite challenging markets, with a comparable EBIT margin of 9.4% and reported EBIT margin of 8.1%, supported by cost measures and strategic transformation.

• Advanced strategic transformation with Uponor acquisition, divestment of GF Machining Solutions, and ongoing review of GF Casting Solutions.

• Strong position in American markets and diversified European presence; previewed Strategy 2030 with focus on Flow Solutions.

• Sustainability targets exceeded, with 76% of sales from products with social or environmental benefits and a 14% reduction in CO2 emissions.

Financial highlights

• Net sales reached CHF 4.8 billion, up 19% year-over-year due to acquisitions, but organic sales declined 2.6%.

• Comparable EBITDA margin increased to 12.9%; reported EBITDA margin at 11.7%.

• Free cash flow before acquisitions rose to CHF 184 million; cash flow from operations improved by CHF 55 million to CHF 393 million.

• Dividend proposal of CHF 1.35 per share, up CHF 0.05 from prior year, with a payout ratio of 52% (2023: 62%).

• Net profit attributable to shareholders was CHF 214 million, with EPS of CHF 2.61; net profit and EPS declined by 9% including all items affecting comparability.

Outlook and guidance

• 2025 guidance for Flow Solutions businesses: flat to low single-digit organic growth, EBIT margin of 10.5%-12.5% before items affecting comparability.

• Strategy 2030 targets: 4%-6% organic growth per year, EBITDA margin of 16%-18%, free cash flow conversion >50%, ROIC 21%-26%.

• Items affecting comparability expected to halve in 2025 to CHF 25-30 million.