Georg Fischer rises on an H2 margin beat driven by synergies

Georg Fischer AG

26/02/2025 09:22

** Shares in the Swiss industrial company Georg Fischer GF.S rise 3.1% after its H2 operating margins came in slightly above consensus

** Its H2 EBIT margin of 8.3% was 11 bps higher than the consensus cited by Jefferies, driven by synergies from Uponor that exceeded the initial target

** Georg Fischer reported FY sales rising 19% yoy driven by the acquisition, but missed the consensus

** "On a comparable basis, the economic slowdown is becoming apparent," says Vontobel analyst Alexander Koller

** He adds that due to the ongoing transformation into a pure Water and Flow Solutions company, the current figures should be treated with caution, as construction and automotive are currently providing little tailwind

** Both Jefferies and Baader note the 2025 outlook was cautious, with GF guiding to lower-single-digit sales growth, with comparable EBIT margin between 10.5% and 12.5% in its future core Flow Solutions business

** The focus is on the new 2030 targets which suggest CHF 4.5-5.0 billion sales and a 13-15% margin, adds Jefferies

**  Its shares are on track for a best day in three months

 (Reporting by Agata Rybska)

 ((gdansk.newsroom@thomsonreuters.com;))