Sparks

Cicor Technologies reported H126 revenue up 19.0% to CHF334.1m (H125: CHF280.7m), driven by acquisitions (22.8%) and held back by adverse fx (-3.8%, on the depreciation of the pound sterling, euro and US dollar against the Swiss franc). Organic growth was flat at 0% as supply chain constraints weighed on revenue in Q1 (-6.0%) before a return to positive organic growth in Q2 (5.3%). Order intake rose 39.8% to CHF399.8m, taking the book-to-bill ratio to 1.2, a fifth consecutive quarter above one, which management frames as a broad-based acceleration rather than a short-term effect. Adjusted EBITDA fell 3.4% to CHF28.0m, with the margin down to 8.4% (H125: 10.3%), while adjusted EBIT declined 11.0% to CHF19.1m and adjusted net profit eased to CHF12.2m (H125: CHF12.9m). Free cash flow before M&A was negative CHF11.5m (H125: CHF9.4m) on a working-capital build ahead of the expected H2 ramp, with net debt up CHF12.5m to CHF82.6m and leverage at 1.34x.

Growth remained led by Aerospace & Defence (A&D), where revenue grew 55% to CHF93.9m and reached a record 28.1% of group revenue (H125: 21.5%). This was brought on by double-digit organic growth and the ramp-up of previously delayed programmes, particularly in the UK, where management targets a third of revenue from A&D over time. Cicor won two new A&D customers, including Kongsberg, plus a long-term rail-infrastructure partnership at Cicor France. Together these are expected to add more than CHF20m of ongoing annual revenue. Cicor now counts around three-quarters of Europe’s leading defence primes as customers. By region, France accounted  for  15% of group revenue (H125: 8%) on the back of the Éolane acquisition, while Germany remained the soft spot at 14% (H125: 20%), albeit with early signs of recovery. By division, Electronic Manufacturing Services revenue grew 20% to CHF315.8m (95% of group revenue), but adjusted EBITDA was flat at CHF26.9m, reflecting lower-margin acquired businesses and production transfer costs. Advanced Substrates revenue (5% of group revenue) grew 4.6% to CHF20.1m, but its adjusted EBITDA margin dropped to 7.7%, affected by a shift in printed circuit board (PCB) demand in Asia into H2 and a now-resolved capacity ramp-up issue in Wangs; the hybrid-substrate business performed well.

Cicor confirmed FY26 guidance of CHF700–750m revenue and adjusted EBITDA of CHF70–80m, implying a marked H2 step-up driven by H2-weighted A&D and Healthcare programmes, completed integration and transfer work, fixed-cost leverage and easing component lead times. Management flagged fx and PCB availability as the key risks, and reiterated a c 50% free-cash-flow-to-EBITDA conversion long-term target. Management also signalled continued appetite for bolt-on M&A in H2.