OC Oerlikon (OERL) Q4 2025 (Media) earnings summary

Executive summary

• Executed a pure-play strategy, transforming into a global leader in material science and surface technologies, with a focus on innovation and diversification into new markets such as medical, semiconductors, and luxury.

• Completed transformation to a pure-play surface technologies and advanced materials company with the divestment of Barmag, generating a net book gain of CHF 287 million to be recognized in 2026.

• Achieved strong order intake, up 6.5% year-over-year at constant FX, with Q4 acceleration despite a weak economic environment and geopolitical uncertainties.

• Achieved significant cost savings and efficiency gains through reconditioning and advanced coatings, including 50% cost savings and 20x tool life extension.

• Streamlined automotive and luxury portfolios in H2'25, resulting in impairments and restructuring charges.

Financial highlights

• FY 2025 order intake: CHF 1.7bn, up 6.5% year-over-year at constant FX.

• FY 2025 sales: CHF 1.6bn, down 0.3% year-over-year at constant FX.

• Operational EBITDA: CHF 271m (margin 17.3%), down from CHF 304m (18.5%) in 2024.

• Book-to-bill ratio for Q4'25 was 1.08x, indicating strong demand.

• Reported net result: CHF -14m; from continuing operations: CHF -51m, impacted by one-off charges in automotive and luxury.

Outlook and guidance

• 2026 organic sales at constant FX expected to increase by a low single-digit percentage.

• Operational EBITDA margin expected at approximately 17.5%, supported by innovation and efficiency measures.

• End markets expected to stabilize in 2026 after a subdued 2025, with continued challenges in general industry, tooling, automotive, and luxury.

• Ongoing geopolitical uncertainties and subdued economic environment anticipated to persist.

• Further cost-out actions and portfolio optimization to support profitability.