Switzerland's Huber+Suhner H1 sales rise 2.6% EBIT falls on investments
Switzerland's Huber+Suhner H1 sales rise 2.6% EBIT falls on investments
Overview
Switzerland connectivity supplier's H1 net sales rose 2.6% yr/yr, order intake up 5.1%
EBIT and net income declined due to upfront investments in capacity expansion
Company agreed to acquire Ingun to expand test and measurement portfolio
Outlook
Company continues to aim for at least 10% organic sales growth for 2026
Company still expects 2026 EBIT margin between 10.5% and 12.0%
HUBER+SUHNER expects robust demand in Industry, challenging conditions in Communication, and stable Transportation
Result Drivers
INDUSTRY SEGMENT DEMAND - Strong demand in Aerospace & Defense and Test & Measurement drove double-digit growth in the Industry segment
OCS INVESTMENTS - Substantial upfront investments in Optical Circuit Switches weighed on Communication segment profitability and group EBIT
TRANSPORTATION SEGMENT RECOVERY - Improved order intake in Automotive and Rail Communications supported Transportation segment, though sales were nearly flat
Company press release: ID:nEQ6Z5tPba
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Sales |
| CHF 457.40 mln |
|
H1 Net Income |
| CHF 34.90 mln |
|
H1 Free Operating Cash Flow |
| -CHF 25.20 mln |
|
H1 EBIT |
| CHF 41.20 mln |
|
H1 EBIT Margin |
| 9.00% |
|
H1 Orders |
| CHF 542.80 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "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 Huber+Suhner AG is CHF250.00, about 22.9% above its August 17 closing price of CHF203.50
The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 40 three months ago
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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.)