Switzerland's Bucher H1 sales and profit fall on weak demand, restructuring costs
Switzerland's Bucher H1 sales and profit fall on weak demand, restructuring costs
Overview
Swiss engineering group's H1 sales and EBIT declined
Company cites political uncertainties and restructuring costs for lower profitability
Financial position remains solid with stable employment and ongoing cost-saving measures
Outlook
Bucher expects 2026 group sales to be slightly lower on a comparable basis
Company sees 2026 operating profit margin below prior-year level, excluding 2025 property sale profit
Company says political uncertainty continues to dampen recovery in demand
Result Drivers
POLITICAL UNCERTAINTY - Co said political uncertainties, particularly in agriculture, dampened investment and hampered a broader recovery in demand
LOWER CAPACITY UTILISATION - Reduced capacity utilisation across the group weighed on profitability, especially in divisions with weaker demand
RESTRUCTURING COSTS - Restructuring at Bucher Specials, including production consolidation and efficiency measures, resulted in additional costs and lower profit
Company press release: ID:nEQc03rT0a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Sales | Miss | CHF 1.47 bln | CHF 1.50 bln (1 Analyst) |
H1 EPS |
| CHF 8.90 |
|
H1 Net Income |
| CHF 88 mln |
|
H1 EBIT | Miss | CHF 105 mln | CHF 126 mln (1 Analyst) |
H1 Order Backlog |
| CHF 867 mln |
|
H1 Orders |
| CHF 1.24 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."
Wall Street's median 12-month price target for Bucher Industries AG is CHF340.00, about 1.5% above its July 29 closing price of CHF335.00
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
July 28 - Austria's Palfinger H1 profit falls on softer demand
July 29 - Switzerland's Ascom H1 profit rises on cost discipline
July 29 - Canada's Decisive Dividend Q2 sales rise on hearth and agriculture demand
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)