R&S Group (RSGN) H1 2026 earnings summary

Executive summary

• Strategic focus on execution and profitable growth, with capacity expansion in Łódź on track to double power transformer output by 2028.

• Maintained strong EBITDA margin and solid cash flow despite a 13.1% decline in net sales year-over-year, supported by record order backlog and continued investments in manufacturing capacity and strategic growth initiatives.

• Expansion into high-growth, high-margin markets such as data centers, BESS, industrial infrastructure, and photovoltaic applications is underway.

• Leadership transition: CEO resignation and interim appointment, with search for permanent CEO ongoing.

• FY2026 and mid-term guidance confirmed, supported by strong fundamentals and record backlog.

Financial highlights

• Net sales for H1 2026 at CHF 179.2 million, down 13.1% year-over-year; EBITDA CHF 34.0 million, margin 19.0%.

• Profit after tax CHF 22.4 million, down 25.4% year-over-year; free cash flow CHF 11.5 million, FCF margin 6.4%.

• Record order backlog of CHF 357.9 million (+17.1% year-over-year), providing strong visibility into 2027 and beyond.

• Book-to-bill ratio at 1.2x as of June 2026; order intake CHF 216.8 million (-11.4% year-over-year).

• Net financial debt reduced to CHF 71.4 million (leverage ratio 0.9x); cash and cash equivalents declined by CHF 15.6 million due to dividend and loan amortization.

Outlook and guidance

• Mid-term organic net sales growth targeted at 8–12% (3-year rolling cycle), EBITDA margin 19–21%.

• FY2026 net sales expected at CHF 410–420 million, with stronger performance anticipated in the second half.

• Dividend policy set at CHF 0.50 per share; target leverage ratio around 1.0x Net Debt/LTM EBITDA.

• Structural demand drivers include electrification, decarbonization, decentralization, and grid renewal.

• Investments in new capacity and capabilities to support future growth and competitiveness.