StarragTornos (STGN) H2 2025 earnings summary

Executive summary

• Order intake remained stable at CHF 472.8–473 million, with a 3.2% increase in order backlog, despite a sharp decline in Luxury Goods and challenging economic conditions.

• Net sales fell 10.5% year-over-year to CHF 442.1 million, mainly due to weak demand in Luxury Goods and Transportation.

• EBIT dropped 61% to CHF 6.0 million (1.4% margin), and net profit declined 54.9% to CHF 5.3 million.

• Aerospace segment surged 40.1% year-over-year, now the largest segment, offsetting declines in other segments.

• Merger synergies from the Starrag and Tornos integration began to positively impact operating profit.

Financial highlights

• Net sales down 10.5% year-over-year to CHF 442.1 million; EBIT margin at 1.4%; net profit CHF 5.3 million.

• Gross profit margin around 60%; cost base reduced by CHF 22 million through workforce and OpEx cuts.

• Free cash flow improved to CHF 35.4 million from negative CHF 14.7 million in 2024; all bank debt repaid.

• Equity ratio increased to 59.6%; net liquidity at CHF 29.6 million at year-end.

• Dividend of CHF 1.00 per share proposed, payout ratio at 102.2%.

Outlook and guidance

• No broad-based recovery expected in 2026; economic uncertainty and potential trade barriers remain risks.

• Aerospace and defense expected to remain strong; other segments to remain subdued until at least 2027.

• Full-year effects from cost-saving and synergy measures expected to support margins.

• Order backlog provides operational stability for 2026.

• Medium-term targets reaffirmed: 5% annual sales growth, EBIT margin over 8%, payout ratio of 35-50%.