Avolta (AVOL) Q3 2025 TU earnings summary

Executive summary

• Reported turnover for the first nine months of 2025 was CHF 10.609 billion, with CORE turnover at CHF 10.407 billion, up 5.8% at CER and 5.4% organically year-over-year.

• CORE EBITDA margin expanded to 10.2%, a 30 basis point increase year-over-year, supported by cost and productivity improvements.

• Achieved record equity free cash flow (EFCF) of CHF 503 million, up 13% year-over-year, with a conversion rate of 47.3%.

• Leverage reduced to 1.9x net debt/CORE EBITDA, within the target range of 1.5x–2.0x.

• October organic growth accelerated to 6.0% year-over-year, driven by positive momentum in North America.

Financial highlights

• Turnover for nine months reached CHF 10.609 billion, with CORE turnover at CHF 10.407 billion; reported results impacted by FX headwinds.

• EBITDA margin improved by 30 basis points to 10.2% for the nine months, and Q3 margin rose to 11.9%, up 37bps year-over-year.

• EFCF for 9M 2025 was CHF 503 million, with Q3 EFCF at CHF 287 million (+23.7% YoY).

• Leverage reduced to 1.9x net debt/CORE EBITDA from 2.2x in September 2024.

• CHF 129 million spent on share buybacks (3.2 million shares) by end-September under a CHF 200 million program.

Outlook and guidance

• Medium-term targets confirmed: organic growth of 5–7% per annum at CER, EBITDA margin expansion of 20–40bps, and EFCF conversion improvement of 100–150bps per annum.

• October organic growth expected at +6.0% YoY, with North America showing an encouraging inflection.

• Confident in meeting or exceeding full-year and multi-year targets due to geographic and segment diversification.

• 2025 currency translation expected to be -3% at current exchange rates.