Bucher Industries (BUCN) H1 2025 earnings summary

Executive summary

• Order intake increased 6.4% year-over-year, led by Kuhn Group and Bucher Hydraulics, but group sales declined 9% due to a lower order book and market uncertainties.

• Profitability was supported by a CHF 43 million gain from a property sale, boosting the operating margin by 2.8 percentage points.

• Cost-saving measures and workforce adjustments were implemented, especially in Germany and the USA.

• Equity ratio remained stable at 67%, with a strong net cash position and ongoing share buyback.

• Internal succession for Bucher Municipal division president was announced.

Financial highlights

• EBIT margin was 11.6%, including a 2.8 percentage point impact from the property sale; profit for the period was CHF 143 million.

• Operating free cash flow was close to CHF 100 million, aided by lower-than-average net working capital buildup.

• Net cash stood at CHF 327.3 million at period end, with an equity ratio at 67%.

• Earnings per share reached CHF 13.98, slightly below the prior year.

• Income taxes totaled CHF 40 million, with a tax rate of 22%.

Outlook and guidance

• Group expects slightly lower sales for 2025 on a comparable basis, with operating profit margin somewhat lower excluding the property sale gain.

• Kuhn Group and Bucher Municipal anticipate stable sales and margins; Bucher Hydraulics and Emhart Glass expect lower sales and margins; Bucher Specials expects a slight sales decline but margin improvement.

• Guidance for group sales decline is in the 3%-5% range, with EBIT margin targeted above 8%.