OC Oerlikon (OERL) Q4 2025 earnings summary

Executive summary

• Completed transformation to a pure-play material science and surface technologies company, focusing on PVD, CVD coatings, 3D printing, and proprietary materials, with Barmag divestment finalized in February 2026.

• Achieved a 45% reduction in administration costs since 2019, supporting agility and cost reduction.

• Maintained strong innovation pipeline with R&D investment at 5-6% of sales, supporting resilience and growth in core markets.

• Strategic focus on digitalization, operational efficiency, and sustainability, with significant ESG achievements including a 17% reduction in Scope 1 & 2 CO2 emissions and 47% renewable electricity in 2025.

• Stable sales in 2025 despite challenging macroeconomic and geopolitical conditions, with strong order intake and resilience from innovation leadership.

Financial highlights

• FY 2025 order intake rose 6.5% year-over-year to CHF 1.655 billion at constant FX, with a book-to-bill ratio of 1.06.

• Sales remained stable at CHF 1.568 billion at constant FX, with slight growth in H2 offsetting H1 decline.

• Operational EBITDA was CHF 271 million (17.3% margin), down 11% year-over-year, impacted by negative mix and FX headwinds.

• Net book gain of CHF 287 million from Barmag divestment to be booked in 2026.

• Proposed total dividend of CHF 0.85 per share, including a CHF 0.65 extraordinary dividend from Barmag proceeds.

Outlook and guidance

• 2026 sales expected to grow low single digits organically at constant FX, with continued subdued demand in general industry, tooling, automotive, and luxury.

• Operational EBITDA margin guided at around 17.5% for 2026, with further improvement in ROCE anticipated.

• End markets anticipated to stabilize in 2026 after a subdued 2025, with regional discrepancies and gradual recovery in Europe and the US.

• Continued deleveraging targeted, aiming for net debt/EBITDA below 2x by 2027.