Avolta AG

Avolta reported turnover of CHF 6.437 billion in H1 2026, core EBITDA of CHF 583 million, and an EBITDA margin of 9.1%. Organic growth was 3.7%, or 5.2% excluding the Middle East impact; constant-currency growth was 3.1%. Equity free cash flow was CHF 207 million versus CHF 216 million a year ago, with Q2 equity free cash flow at CHF 370 million. Gross profit margin declined by 20 basis points year over year, and leverage improved to 2.07x, down about 0.1 turn. For the full year, management expects FX to be about minus 3.5% if rates remain roughly stable. Forward guidance was unchanged: midterm organic growth of 5% to 7%, EBITDA margin expansion of 20 to 40 basis points per year, and increased equity free cash flow year over year.

Xavier Rossinyol framed the quarter as a solid performance in a volatile environment, emphasizing that the business is still growing through temporary disruptions rather than losing momentum. He said the Middle East impact is gradually easing, the Pudong and JFK ramp-ups should improve month by month, and he expects those projects to be much closer to full maturity in 2027. He also highlighted Avolta’s long-term strategy of winning large concessions, selective accretive M&A, and building data/technology capabilities through Club Avolta and dynamic pricing, assortment, and advertising.

Yves Gerster said H1 turnover was CHF 6.437 billion, core EBITDA was CHF 583 million, and the EBITDA margin was 9.1%, with a normalized 9.5% figure excluding Middle East and the Pudong/JFK ramp-up effects. He noted the gross margin was down 20 basis points, with concession and personnel expenses slightly higher as a percentage of sales due to mix and ramp-up effects. Cash generation improved sharply in Q2, helping equity free cash flow reach CHF 207 million, while leverage moved down to 2.07x. He also said CapEx was a bit lower in H1 because of timing shifts, and that the 2027 bond maturity will be refinanced later this year.

Analysts focused on how long Pudong and JFK would weigh on margins, whether H2 can offset the first-half pressure, and how cash flow and CapEx should phase through the year. Management said both sites are large, complex ramp-ups and should improve quarter by quarter, but full normalization is more likely in 2027 than in 2026. Questions also centered on regional margin moves: management said North America held up because JFK’s scale was smaller relative to the region, while EMEA, LatAm, and APAC were hit by the Middle East, security and FX issues, and Pudong respectively. They also explained that Okinawa is strategically attractive because it expands Avolta’s Japan footprint into retail and duty free and is expected to be accretive, with leverage impact described as between 0 and 0.1x.