SGS (SGSN) H1 2026 earnings summary

Executive summary

• Achieved strong H1 2026 results with sales of CHF 3,683 million, 7.6% year-over-year growth, and 5.6% organic growth, despite headwinds from the Middle East crisis.

• Margin expansion continued, with adjusted operating income margin improving by 20bps to 15.1% and EPS before HQ disposal rising 14.5%.

• Free cash flow reached CHF 260 million, up 25% year-over-year, driven by strong operational performance.

• Strategy 27 and a focus on Digital Trust (38% growth) and Sustainability (18% growth) drove performance, supported by ATS integration and 14 bolt-on acquisitions.

• Portfolio evolution included the disposal of Maine Pointe and management changes, with a new Head of Europe and Latin America.

Financial highlights

• Sales reached CHF 3,683 million, up 7.6% in CHF and 13.4% in constant currency, with 5.6% organic growth and 7.8% from M&A.

• Adjusted operating income rose to CHF 555 million, margin at 15.1% (+20bps year-over-year); AOI margin improvement driven by organic and M&A contributions.

• EPS before HQ disposal increased 14.5% to CHF 1.58; basic EPS was CHF 1.58, down 3.7% due to prior year HQ disposal gain.

• Free cash flow before HQ disposal was CHF 260 million, up 25% year-over-year.

• Net debt increased to CHF 3,916 million, mainly due to acquisitions and dividend payments.

Outlook and guidance

• 2026 outlook confirmed: 5–7% organic sales growth, 5–7% additional sales from acquisitions, AOI margin ≥16%, and >50% cash conversion.

• 2027 objectives reaffirmed: annual organic sales growth of 5–7%, at least 1.5pp AOI margin improvement vs. 2023, cash conversion >50%.

• Strong exit rates in Q2 for organic growth and margins expected to continue into H2.

• Capital Markets Event scheduled for 17–18 November 2026.