Schweiter Technologies (SWTQ) investor relations material

Executive summary

• Net sales reached CHF 450.3 million, reflecting a year-over-year decrease of up to 9% (2% like-for-like), mainly due to currency effects and the divestment of the Bus & Rail business.

• EBITDA improved to CHF 45.0 million (10.0% margin), up from 8.8% last year, driven by operational excellence, pricing, and cost discipline.

• Net income increased 28% to CHF 16.4 million, reflecting margin expansion and efficiency gains.

• Free operating cash flow declined to CHF 12.6 million, impacted by higher inventories and preparation for anticipated stronger H2 sales.

• Strategic focus on innovation, operational excellence, and attractive markets is yielding measurable results.

Financial highlights

• EBIT rose to CHF 25.3 million (up to 5.8% margin), up from 4.4% last year; net income increased to CHF 16.4 million.

• Free operating cash flow was CHF 12.6 million, down from CHF 21.3 million last year, due to higher inventories and raw material costs.

• Equity ratio stands at 67%, with net cash of CHF 45 million.

• Material costs as a percentage of sales improved by 80 basis points to 50.3%.

• Earnings per share increased to CHF 11.6, up from CHF 9.1.

Outlook and guidance

• Net sales for H2 expected to be slightly below H1 but above H2 2025; full-year net sales expected to remain below prior-year level.

• Margins (EBITDA and EBIT) are expected to exceed prior year levels, with ambition to maintain EBITDA margin near 10% and EBIT margin target over the cycle at 7%-9%.

• Free cash flow for H2 anticipated to be strong, improving over last year.

• Limited visibility persists for H2 2026; display and core materials dependent on consumer sentiment and raw material trends.

• Architecture segment expected to grow in North America, with slow recovery in Europe and Asia.