Bystronic (BYS) H2 2024 earnings summary

Executive summary

• Net sales declined 30.3% year-over-year to CHF 648.3 million, with order intake down 21.2% to CHF 625.4 million, driven by challenging markets, economic uncertainties, and internal execution issues.

• Operating loss was CHF 84 million, with restructuring and impairment costs of CHF 36.6 million; adjusted EBIT was -CHF 47.4 million.

• Net result for the year was -CHF 67.6 million, compared to a profit of CHF 41.9 million last year.

• Restructuring program launched in September 2024 targeted annual savings of over CHF 60 million and a reduction of more than 600 FTEs.

• Dividend proposal of CHF 4.00 per Class A share, down from CHF 12.00, reflecting negative results and future confidence.

Financial highlights

• Service business declined 10.6%, while systems business fell 37.0% year-over-year; service now about a third of net sales.

• Gross margin declined by 1.2 percentage points to 42.3%, though improved sourcing and service mix provided some offset.

• Personnel expenses reduced by 8.3% (CHF 21 million); operating expenses down 13% to CHF 176 million.

• Operating free cash flow remained positive at CHF 1.2 million, supported by working capital optimization.

• Equity ratio strong at 69% of total assets; liquid assets at year-end were CHF 323 million.

Outlook and guidance

• 2025 expected to be a transition and consolidation year with continued market challenges and a weak start; no recovery anticipated.

• Order intake expected to increase in H2 2025, mainly from market share gains, positively impacting 2026 net sales.

• Two-thirds of cost savings from restructuring to be realized in 2025; only minor restructuring costs remain.

• Net sales and operating profit expected to be slightly lower and negative, respectively, in 2025.

• EBIT margin target of 5%-7% on organic net sales of around CHF 800 million over the cycle.