Sulzer: fewer orders in the first half, but operating profit grows (cross-border guide)

Context

In a nutshell - Sulzer's order backlog fell 8.9% in the first half of 2026. - Operating profit increased by 9.7%. - Turnover fell by 4.1%. ## Key facts - Order book : CHF 1.79 billion - Revenue: CHF 1.67 billion - EBITDA: CHF 258.7 million - Net profit: CHF 138.8 million Sulzer recorded a decrease in orders in the first half of 2026 compared to the same period of the previous year. The order book fell by 8.9% to CHF 1.79 billion, equivalent to an organic decline of 3.9%. In particular, the Chemtech division made an impact, while the Flow division showed a slight increase despite difficulties in supply chains and delays related to the situation in the Middle East. The service sector has remained stable. The company found that the drop in orders was most affected by the decrease in requests for chemicals and a slowdown in construction activities for water treatment plants. However, the Flow division showed a slight increase, thanks to the growth in demand for water management products. The company also found that the services sector remained stable, thanks to the growth in demands for maintenance and repair services. Operating profit growth of 9.7% was influenced by cost reduction and sales growth. The company found that the increase in orders was influenced by the growth in demands for maintenance and repair services. The company also found that cost reduction was possible thanks to the implementation of efficiency measures and the reduction of non-essential staff. The company found that the cost reduction helped to offset the decline in revenue and increase operating profit. The company also found that sales growth was influenced by growth in demand for water management products and growth in demand for maintenance and repair services. The company found that sales growth helped offset the decline in revenue and increased operating profit. The company also found that growing demands for water resource management products and growing demands for maintenance and repair services helped offset the decline in the backlog. The company found that the growth in demand for water resource management products and the growth in demand for maintenance and repair services helped increase operating profit. The company also found that lower sales margins and production cost growth negatively impacted EBITDA. However, the company also noted that the

Operational details

The company has accelerated organizational adjustments to reduce costs and make the division leaner and more customer-oriented. Despite the decline in revenues, profitability has improved. EBITDA increased by 9.7% to CHF 258.7 million, with a margin of 15.5%. Net profit reached CHF 138.8 million, up almost 8% year-on-year.

The decision to accelerate organisational adjustments was taken following a review of Sulzer's business strategies. The goal was to reduce costs and improve operational efficiency. According to the company, the adjustments have reduced production costs by about CHF 5 million, thanks to the implementation of new technologies and the elimination of non-essential functions.

Sulzer also implemented a reorganisation plan for its pump and compressor division, which reduced the workforce by around 10% and improved operational efficiency. The plan has been put in place in collaboration with trade unions and has made it possible to maintain employment levels in Freiburg and Zurich, where the company has important production sites.

The first half of 2023 was characterised by a drop in revenues, mainly due to the decrease in demand for pumps and compressors. However, Sulzer has maintained its leading position on the Swiss and international market, thanks to its technological expertise

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Key points

The group expects order book growth between 1% and 5% and turnover between 2% and 5%, with an expected EBITDA margin of around 16.5%. The company also continues to expect a stronger second half, supported by a solid order book of just under CHF 2.4 billion. This positive trend is in line with market expectations, which foresees a recovery of the Swiss mechanical industry in the second half of the year.

According to statistics from the Federal Office of Statistics (OFS), the Swiss mechanical sector suffered a contraction of 3.5% in the first half of 2023, due to the global recession and the war in Ukraine. However, the OFS also found that the mechanical sector is more resilient to economic fluctuations than other sectors, thanks to its ability to adapt to new technologies and market needs.

The Sulzer Group also announced its intention to increase operational efficiency and reduce costs, thanks to the implementation of new technologies and the reorganization of its internal processes. These measures are expected to help improve productivity and reduce production costs, allowing the group to maintain its competitiveness in the market.

According to the group's plans, cost reduction should be achieved through the replacement of some manual processes with automated technologies, as well as through the reduction of

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Source: tio.ch