StarragTornos (STGN) H1 2025 earnings summary

Executive summary

• Reported a challenging first half of 2025 with declines in order intake, net sales, and order backlog due to geopolitical disruptions and market downturns, especially in the DACH region, US, and luxury goods sector.

• Exceptional non-recurring costs and negative currency effects led to negative EBIT and a net loss, but free cash flow improved significantly year-over-year.

• Cost-reduction and restructuring measures, including short-time work at several sites, were implemented to address market challenges.

• Strategic investments continued, including ERP system updates and procurement optimization.

• New products launched in both divisions, and synergy program from the 2023 merger is progressing.

Financial highlights

• Order intake fell 23.1% year-over-year to CHF 196.5 million; net sales declined 14.4% to CHF 218.2 million.

• EBITDA dropped 79.7% to CHF 3.2 million; EBIT was CHF -3.1 million (down from CHF 9.5 million), and net loss was CHF -9.1 million (compared to net profit of CHF 6.6 million in H1 2024).

• Free cash flow improved to CHF 12.7 million from CHF -42.4 million year-over-year.

• Order backlog decreased 11.6% to CHF 288.1 million; net liquidity rose to CHF 5.8 million.

• Equity ratio remained solid at 57.1%.

Outlook and guidance

• Anticipates increased revenue and margins in H2 2025, expecting a clearly positive full-year result.

• Expects to secure major contracts in the defense industry and maintain strong positions in Aerospace and Transportation segments.

• Medium- and long-term targets remain unchanged despite ongoing economic unpredictability.