Tecan Group (TECN) H2 2025 earnings summary

Executive summary

• Sales for 2025 were CHF 882.5 million, down 1.6% in local currency, with adjusted EBITDA at CHF 142.1 million (16.1% margin); net loss of CHF 110.7 million due to CHF 139.5 million impairment.

• Cash flow from operations was CHF 138.0 million, representing 118% EBITDA conversion.

• The "Rewired" transformation program aims for CHF 1 billion sales and 20% adjusted EBITDA by 2028.

• Board proposes a stable CHF 3.00 dividend per share.

• Focus on automation, AI-driven demand, and scalable solutions in research, diagnostics, and MedTech markets.

Financial highlights

• Order entry for 2025 was CHF 900.9 million, up 3.8% in local currencies; book-to-bill ratio above one in both segments.

• Adjusted EBITDA margin declined to 16.1% (2024: 17.6%) due to FX and tariffs; excluding these, margin was 18.1%.

• Adjusted net profit was CHF 87.0 million (2024: CHF 103.1 million); adjusted EPS CHF 6.87; reported EPS CHF -8.74.

• Cash flow from operations improved to 118% of EBITDA; net liquidity rose to CHF 160.8 million.

• Gross margin increased to 35.2% (2024: 34.3%).

Outlook and guidance

• 2026 sales expected to grow low single digits in local currencies; adjusted EBITDA margin forecast at 15.5–16.5%.

• 2028 targets: CHF 1 billion in sales, 20% adjusted EBITDA margin.

• Beyond 2028, aim for mid- to high-single-digit sales growth and EBITDA margin expansion.

• Market growth for 2026 forecasted at -1% to +1%, with gradual improvement in subsequent years.

• Normalization in end markets not anticipated until 2029.