SGS (SGSN) Q3 2025 TU earnings summary

Executive summary

• Q3 2025 sales reached CHF 1,729 million, up 6.0% organically and 1.8% year-over-year, driven by Sustainability, Digital Trust, and supply chain migration, with 17 bolt-on acquisitions year-to-date.

• New global framework 'SGS DIGITAL TRUST' launched, focusing on digital trust, safety, cybersecurity, and sustainability.

• Five notable acquisitions in Q3 included MPR Services, Fulcrum Robotics, Geosol, Tres60, and Qualitest, expanding presence in North America, Australia, Brazil, Chile, and Canada.

• 17 acquisitions year-to-date contributed over CHF 150 million in annual sales.

• Double-digit growth in Sustainability, with new partnerships and certifications for major clients.

Financial highlights

• Organic sales growth of 6.0% in Q3 2025, with a 1.9% positive scope effect and -6.1% FX impact; constant currency growth was 7.9%.

• Q3 2025 sales by division: Asia Pacific CHF 511m (+7.6%), Europe CHF 510m (+4.5%), North America CHF 184m (+3.9%), Latin America CHF 153m (+14.1%).

• Nine-month sales reached CHF 5,151 million, up 2.3% year-over-year, with 5.5% organic growth and 1.6% from acquisitions.

• Forex translation had a -6.1% impact in Q3 and -4.8% in 9M, affecting reported results.

Outlook and guidance

• 2025 guidance confirmed: 5–7% organic sales growth, 1–2% bolt-on M&A contribution, at least 30bps AOI margin improvement, and strong free cash flow generation.

• Adjusted operating income margin to improve by at least 30 basis points, supported by corporate savings plans.

• Organic growth for the full year expected to remain close to the nine-month rate, with a prudent outlook due to economic uncertainty.