R&S Group (RSGN) H2 2025 earnings summary

Executive summary

• Achieved record order backlog in 2025, driven by strong demand in renewables, infrastructure, and data centers, and successful expansion into new markets and applications.

• Opened new oil distribution transformer factory in Bochnia, Poland, and began construction of a greenfield power transformer factory in Łódź, Poland, both progressing on schedule.

• Completed integration of Kyte Powertech, strengthening market position, group competencies, and broadening product offering and geographic reach.

• Strategic focus on operational excellence, procurement bundling, digitalization, and high-performance culture, with new CEO and board members defining direction for 2026 and beyond.

• Diversified product portfolio and customer base, targeting high-growth, high-margin clusters across regions and segments.

Financial highlights

• Net sales reached CHF 414.8 million in 2025, up 47% year-over-year; EBITDA increased 28% to CHF 86.72 million (margin 20.9%).

• Profit after tax rose 41% to CHF 58.12 million; earnings per share increased 19% to CHF 1.56.

• Free cash flow improved to CHF 48.1 million (11.6% of net sales), reversing a negative figure in 2024.

• Order intake surged 56% to CHF 476.8 million; order backlog up 17% to CHF 325.7 million.

• Net financial debt reduced by 31% to CHF 62.9 million; leverage ratio improved from 1.6 to 0.7.

Outlook and guidance

• Midterm targets confirmed: 8%-12% organic growth and 19%-21% EBITDA margin over a three-year cycle.

• For 2026, expected to be at the lower end of guidance ranges; CapEx to remain elevated at 7% of net sales due to new plant investments, normalizing to 3% post-2026.

• Dividend proposal of CHF 0.50 per share, with at least the same level planned for coming years; target leverage ratio around 1.0x Net Debt/EBITDA.

• Focus on operational excellence, digitalization, and selective M&A to support growth.