SFS Group (SFSN) H1 2026 earnings summary

Executive summary

• Achieved sales of CHF 1,559.3 million in H1 2026, up 1.3% year-over-year, with 4.0% organic growth despite -4.2% currency effects.

• Adjusted EBIT margin rose to 13.3% (CHF 206.0 million), with reported EBIT at CHF 211.2 million (13.6% margin), reflecting improved profitability and non-recurring effects from streamlining.

• Strategic acquisitions in Europe and North America expanded market access and technology portfolio across all segments.

• Streamlining of global production and distribution network improved profitability, reduced complexity, and supported resilience amid supply chain disruptions.

• Earnings per share increased to CHF 3.82 from CHF 2.86 year-over-year, mainly due to higher EBIT and streamlining effects.

Financial highlights

• EBITDA was CHF 276.8 million (17.8% margin), up from CHF 230.4 million (15.0%).

• Operating free cash flow was CHF 120.9 million, stable year-over-year, with an EBITDA conversion of 43.7%.

• Equity ratio at 58.9% as of June 30, 2026, slightly below prior year.

• Net working capital increased by 9.1% year-over-year, reaching 31.3% of net sales, driven by acquisitions and inventory build-up.

• ROCE improved to 23.4% (up from 18.8% year-over-year); ROIC at 9.6%.

Outlook and guidance

• Full-year 2026 guidance confirmed: sales growth in local currencies of 3–6% (including consolidation effects), adjusted EBIT margin of 12–15%.

• Streamlining program to be completed by end of 2027, with expected positive EBIT margin effect of 0.8 percentage points.

• CapEx expected to accelerate in H2, aiming for midterm range of 4%-6% of sales.

• Net working capital expected to normalize in H2 2026.

• Continued focus on innovation, customer orientation, and streamlining global operations.