Switzerland's Ascom H1 profit rises on cost discipline
Switzerland's Ascom H1 profit rises on cost discipline
Overview
Switzerland mission-critical communications firm's H1 net revenue stable, up 2.6% at constant currencies
EBITDA and group profit rose on improved cost management and operational discipline
Company completed CHF 13.4 mln share buyback, repurchasing 3 mln shares for cancellation
Outlook
Ascom confirms 2026 guidance of low to mid-single-digit revenue growth at constant currencies
Company expects 2026 EBITDA margin of 10–12%
Company says geopolitical volatility will continue to impact its markets
Result Drivers
ORDER GROWTH - Incoming orders and order backlog increased across all regions at constant currencies, supporting future revenue
COST MANAGEMENT - Profitability improved due to continued cost management and operational discipline
PRODUCT MIX - Gross margin declined slightly, which the company attributed to product mix
Company press release: ID:nGNEcf2jCH
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| CHF 139.80 mln |
|
H1 Net Income |
| CHF 5.40 mln |
|
H1 EBIT |
| CHF 7.20 mln |
|
H1 EBITDA |
| CHF 13.50 mln |
|
H1 EBITDA Margin |
| 9.70% |
|
H1 Order Backlog |
| CHF 344.60 mln |
|
H1 Orders |
| CHF 174.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy."
Wall Street's median 12-month price target for Ascom Holding AG is CHF7.45, about 41.9% above its July 28 closing price of CHF5.25
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
July 28 - Ribbon Communications Q2 revenue beats estimates on record IP Optical bookings
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July 28 - Switzerland's SIG Group H1 revenue falls on weak demand, market contraction
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)