Forbo (FORN) H1 2025 earnings summary

Executive summary

• Net sales for H1 2025 reached CHF 546.9 million, down 1.5% in local currencies due to lower volumes and challenging economic conditions.

• Profitability and EBIT declined significantly, especially in Movement Systems, due to underutilized assets and higher costs.

• CEO search is in advanced stages; interim CFO to be appointed as recruitment begins.

• Product innovation, sustainability, and modernization initiatives continued to reinforce market position.

• Maintained a solid balance sheet with net cash and robust equity.

Financial highlights

• Net sales: CHF 546.9 million, down 1.5% in local currencies and 4.1% in reporting currency.

• Gross profit fell 6.7% to CHF 185.8 million; gross margin at 34.0%.

• EBIT dropped 30.6% to CHF 42.9 million; EBIT margin at 7.8%.

• Net profit declined 31.0% to CHF 33.4 million; EPS at CHF 23.70.

• Free cash flow was negative CHF 30.4 million, impacted by lower earnings and seasonal factors.

Outlook and guidance

• Full-year 2025 net sales expected to decline slightly year-over-year in local currencies.

• Profit in H2 2025 anticipated to improve over H1, but full-year profit to decline significantly versus 2024.

• Ongoing investments in digitalization, sustainability, and customer-centric initiatives to drive future growth.