Burckhardt Compression (BCHN) H1 2027 earnings summary

Executive summary

• H1 FY2026 order intake rose 5.4% to CHF 422.5 mn, while sales fell 11.1% to CHF 459.0 mn on lower opening backlog and project phasing.

• EBIT was CHF 55.5 mn at a 12.1% margin; excluding CHF 3.4 mn of restructuring costs, the margin was 12.8%, versus 12.7% a year earlier.

• Net income was CHF 43.0 mn; operating cash flow reached CHF 59.9 mn, and FY2026 guidance was maintained with stronger H2 sales expected.

Financial highlights

• Order intake rose 5.4% to CHF 422.5 mn; organic growth was 2.9% after currency and Fornovo Gas contributions. Sales fell 11.1% to CHF 459.0 mn, with an organic decline of 13.6%.

• Gross profit was CHF 131.4 mn, down 10.1%; gross margin increased 0.3pp to 28.6%, supported by a higher Services mix.

• EBIT declined 15.4% to CHF 55.5 mn; reported margin was 12.1%, versus 12.7% a year earlier, and adjusted margin was 12.8%.

• Net income was CHF 43.0 mn, down 11.6%; EPS was CHF 12.74, down from CHF 14.40, and the tax rate rose to 24.9% from 23.3%.

• SG&A was 13.8% of sales versus 12.3%, reflecting lower sales volume; R&D was 2.8% of sales versus 2.9%.

Outlook and guidance

• FY2026 guidance was confirmed at CHF 900–1,000 mn sales and ~12% EBIT margin; stronger H2 sales are expected from backlog and scheduled deliveries.

• Middle East disruption is expected to continue through H2; cost measures are expected to benefit results from Q4, with annual savings of ~CHF 20 mn from FY2027.

• Mid-Range Plan ambition remains CHF 1.2 bn sales and 12%–15% EBIT margin; timing remains subject to visibility and geopolitical developments.

• H2 margin expectations balance higher sales and Services mix against weaker Systems mix and uncertain regional capacity utilization; ~12% EBIT margin remains appropriate.