Sparks

Schweiter reported H126 net sales of CHF450.3m, down 9% y-o-y (down 4% after currency adjustments), and a 2% decline in like-for-like net sales (adjusted for currency impacts). Despite the lower top line, profitability rose across the board: EBITDA increased to CHF45.0m at a 10.0% margin (H125: CHF43.4m, 8.8%); EBIT rose to CHF25.3m (H125: CHF21.7m); and net income grew to CHF16.4m (H125: CHF12.8m), lifting EPS to CHF11.6 (H125: CHF9.1). The margin gain reflects sustained pricing, efficiency and procurement measures, plus the July 2025 divestment of the loss-making Bus & Rail unit. Free operating cash flow fell to CHF12.6m (H125: CHF21.3m) on higher inventory valuations, though the balance sheet remains robust with a 67% equity ratio and a net cash position.

By business, 3A Composites materially improved its EBITDA margin despite lower revenue. The Display business delivered higher profitability on lower sales, aided by 2025 footprint optimisations and swift pricing, though acrylic raw-material costs spiked in spring on the back of the Middle East crisis, prompting distributors to pull back on Q2 orders and draw down the stock they had built in Q1. Core Materials business sales fell on subdued marine markets and temporary wind-blade order delays in North America, but margins rose on strong Balsa contributions and expanded Chinese kitting activities. The Architecture business grew, led by North American strength, while the Transport & Industry business shrank following the Bus & Rail exit. Regionally, net sales declined in Europe (CHF270.8m), America (CHF134.8m) and Asia-Pacific (CHF43.8m).

For FY26, management expects full-year net sales to remain below the prior year while profitability exceeds the prior-year reference. European consumer sentiment is seen as cautious, with North American and Asian demand at current levels; visibility remains limited amid volatile markets.