Sulzer (SUN) Q4 2025 earnings summary

Executive summary

• Achieved record sales, order intake, and profitability in 2025, with strong growth in aftermarket, water, and services segments, and improved operational performance.

• Strategy focused on operational excellence, commercial discipline, and customer-centric investments, strengthening supply chains and delivery.

• Large project delays in oil & gas and chemicals shifted significant order volume into 2026, but underlying growth momentum remains robust.

• Dividend proposed to increase by CHF 0.50 to CHF 4.75 per share, reflecting confidence in ongoing performance.

• Free cash flow was CHF 212.5 million, with a strong cash position of CHF 927.3 million at year-end.

Financial highlights

• Order intake grew by 2.1% year-over-year, with a book-to-bill ratio of 1.06 and strong aftermarket and water segments.

• Sales increased by 5.6% year-over-year to CHF 3,555.4 million, with EBITDA reaching a record CHF 556.2 million (15.6% margin).

• Basic earnings per share rose 18.8% to CHF 8.68; return on capital employed up 140 bps to 21.1%.

• Negative FX impact reduced order intake and sales by CHF 190 million and EBITDA by CHF 40 million.

• Net debt/EBITDA stable at 1.0; equity ratio improved to 28.3%.

Outlook and guidance

• 2026 guidance: order intake growth of 1–5%, sales growth of 2–5%, EBITDA margin targeted above 16.5%.

• H1 2026 expected to be muted due to timing of large projects; stronger momentum anticipated in H2.

• Aftermarket, water, and small-scale projects expected to drive continued growth, with new technology segments growing in key regions.

• CapEx expected to remain at similar levels for 2026 and 2027.

• Order backlog at year-end was CHF 2,255.6 million, supporting future revenue.