The Swatch Group (UHR) H2 2025 earnings summary

Executive summary

• Net sales reached CHF 6,280 million, down 1.3% at constant exchange rates and 5.9% at current rates year-over-year, with CHF 308 million lost to currency effects.

• Operating profit dropped to CHF 135 million (2.1% margin), and net profit fell sharply to CHF 25 million (0.4% margin), mainly due to deliberate retention of production capacity and jobs.

• Strong sales growth in the second half (+4.7%) and fourth quarter (+7.2%) across all price segments, with notable acceleration in the Americas, India, Middle East, and Europe.

• Equity ratio remains robust at 87.1%, with equity at CHF 11.7 billion.

• Board proposes unchanged dividends: CHF 0.90 per registered share and CHF 4.50 per bearer share.

Financial highlights

• Operating profit in Watches & Jewelry (excluding Production) was CHF 549 million (9.5% margin), but Production segment posted a strongly negative result.

• Operating cash flow increased 52.3% to CHF 507 million; net liquidity at CHF 1,195 million.

• Inventories decreased by 4.5% (CHF 346 million); employee count fell 2.1% to 31,796.

• Basic EPS: CHF 0.01 (registered shares), CHF 0.05 (bearer shares), down from CHF 0.75 and CHF 3.74, respectively.

• Market capitalization at year-end: CHF 8.9 billion.

Outlook and guidance

• Positive momentum from late 2025 continued into January 2026, with expectations for substantial sales and volume growth in 2026.

• Anticipated significant improvement in Production segment profitability and overall Group profitability for 2026.