Sulzer (SUN) H1 2026 earnings summary

Executive summary

• Flow and Services divisions demonstrated growth and improved profitability despite a challenging environment, while Chemtech stabilized its core business but faced headwinds from delayed large projects and is undergoing accelerated restructuring.

• Profitability improved with EBITDA margin rising to 15.5% in H1 2026 from 12.9% in H1 2023, marking the fourth consecutive year of margin growth.

• Commercial and operational excellence initiatives contributed to margin improvements and resilience across divisions.

• Order pipeline for the second half of the year remains strong, supporting a positive outlook.

• Delivered solid financial results in H1 2026 despite geopolitical and macroeconomic headwinds, with resilience in core and aftermarket business lines.

Financial highlights

• Sales increased by 1.0% year-over-year to CHF 1,673 million, with growth in Flow and Services offsetting Chemtech declines.

• Order intake decreased by 3.9% year-over-year to CHF 1,787 million, impacted by fewer large orders and currency effects.

• EBITDA margin rose by 110 basis points to 15.5%, with EBITDA at CHF 258.7 million (up 3.1%).

• Free cash flow dropped to CHF 12.8 million due to increased net working capital from delayed and paused projects.

• Gross profit margin improved by 130 bps to 34.9%.

Outlook and guidance

• Full-year 2026 guidance confirmed: order intake growth of 1–5%, sales growth of 2–5%, and EBITDA margin around 16.5%.

• Larger project orders expected to be back-end loaded in Q4, with increasing customer planning activity observed.

• Continued focus on cost reduction, operational excellence, and strategic growth areas.