Sulzer (SUN) H2 2024 earnings summary

Executive summary

• Achieved strong 2024 results with double-digit growth in sales and order intake, reflecting successful strategy execution and focus on essential, structurally growing industries such as energy, water, chemicals, and green minerals.

• Significant improvements in profitability and financial strength, supported by Sulzer Excellence initiatives and operational execution.

• Continued investments in operational excellence, innovation, and customer-centricity, including new test and innovation centers in Singapore, Mexico, and Europe.

Financial highlights

• 2024 sales reached CHF 3,530.6m, up 10.8% year-over-year in constant currencies; order intake rose 10.8% to CHF 3,848.6m.

• EBITDA increased to CHF 436.2m, with operational profit up nearly 25% compared to 2023; EBITA up 24.7% to CHF 436.2m; EBIT up 21.8% to CHF 383m; Net Income grew 20% to CHF 265m.

• Free cash flow was CHF 234.9m, impacted by timing of a large customer payment, higher CapEx, working capital, and tax payments.

• Return on capital employed rose by 200 basis points to 19.7%.

• Dividend proposed to increase from CHF 3.75 to CHF 4.25 per share, with a payout ratio of 46.7% of core net income.

Outlook and guidance

• 2025 guidance: order intake up 2–5%, sales up 5–8%, EBITDA margin above 15%, with less cost for Sulzer Excellence implementation than in 2024.

• Execution on high backlog is a key focus; revenue growth expected to be more dynamic in H1 2025.

• Long-term strategy targets above-average organic growth in structurally growing markets.