Sulzer (SUN) H1 2025 earnings summary

Executive summary

• Achieved strong sales growth above market, driven by backlog execution and double-digit growth in Flow and Services; profitability improved for the third consecutive year, with EBITDA and ROCE both rising.

• Order intake remained robust except for Chemtech, which was impacted by geopolitical factors and market headwinds.

• Net income rose to CHF 128.2 million from CHF 117.4 million year-over-year.

• Total comprehensive income declined to CHF 63.3 million from CHF 185.9 million, mainly due to negative currency translation differences.

• Acquisition of Davies & Mills Co.W.L.L. in Bahrain expanded the Services division.

Financial highlights

• Group sales increased by 6.3% to CHF 1,743.9 million in H1 2025, with double-digit growth in Flow (+10.3%) and Services (+15%), but Chemtech sales declined by 13.6%.

• EBITDA margin improved to 14.4%, up 90 basis points year-over-year; adjusted for FX, the increase would be 120 basis points.

• ROCE rose to 20.0% from 17.3%, a 270 bps increase.

• Free cash flow for H1 2025 was CHF 79.7 million, down from CHF 97.9 million in H1 2024, mainly due to increased inventory and receivables from project delays.

• Net cash and cash equivalents at period end were CHF 921.6 million, slightly down from CHF 931.4 million a year earlier.

Outlook and guidance

• Guidance confirmed: order intake expected up 2–5%, sales up 5–8%, and EBITDA margin above 15% for the full year.

• H2 expected to be stronger than H1, especially for Chemtech, with a promising pipeline in environmental technologies and large projects.

• No changes to midterm targets or strategy despite market uncertainties.

• Estimated average annual tax rate for 2025 is 24.2%, slightly lower than 24.9% in H1 2024.

• No material impact expected from new or upcoming accounting standards.