R&S Group (RSGN) Q2 2025 earnings summary

Executive summary

• Achieved strong topline growth in H1 2025, with net sales of CHF 206.3 million, up 87.7% year-over-year, supported by robust order intake and the Kyte/Kite Powertech acquisition.

• Integration of Kyte/Kite Powertech completed, with focus on operational improvements, cross-selling, and productivity gains.

• New CEO Eduardo Terzi appointed in June 2025, bringing industry experience and leading the next growth phase.

• Expansion and ramp-up of new transformer plants in Bosnia and Poland progressing, though Bosnia faced delays impacting sales.

• Benefited from strong electrification and grid modernization trends, maintaining a healthy order backlog.

Financial highlights

• Order intake rose 74% year-over-year to CHF 244.8 million; order backlog up 40% to CHF 305.7 million.

• EBIT reached CHF 40.2 million, with a 19.5% margin; profit after tax was CHF 28.8 million, up 138% year-over-year.

• Earnings per share rose to CHF 0.77, reflecting increased share count post-warrant conversion.

• Free cash flow was CHF 5.2 million, impacted by working capital build-up and CapEx for growth.

• Net financial debt increased to CHF 104 million due to acquisition and investment activity.

Outlook and guidance

• Focus for H2 2025 on operational excellence, ramping up Bosnia and Bochnia, and progressing the new Lodz plant.

• Net sales growth guidance of 10–13% p.a. and EBIT margin around 20% confirmed for the mid-term.

• Ongoing investments in innovation, operational efficiency, and customer relationships to sustain growth.

• New Lodz plant for power transformers on track for Q4 2026, expected to double output.

• Measures in place to improve cash conversion and working capital in H2 2025.