Bucher Industries AG

The group said first-half 2026 order intake was slightly below the prior period and net sales slightly declined. Profitability was hurt by lower capacity utilization, cost pressure, restructuring costs in Bucher Specials, and the absence of last year’s CHF 43 million property-sale gain. By division, Kuhn Group order intake fell 18% and sales rose 3% on a comparable basis with an 8.8% operating margin; Bucher Municipal order intake rose almost 8% and sales were still 3.6% below last year with a 7.2% margin; Bucher Hydraulics order intake rose 9%, sales almost 8%, and margin improved to 10.8%; Emhart Glass order intake rose almost 9% but sales were 25% below last year with a 5% EBIT margin; Bucher Specials order intake rose 4% and sales fell 2.4%, including CHF 8 million of restructuring costs. On the financial side, net financial result was positive CHF 4 million, income taxes were CHF 21 million with a 19.2% tax rate, operating free cash flow was CHF -73 million, net cash was CHF 278 million, equity ratio was 66%, RONOA after tax was 12.7%, and capex was 2.8% of sales versus 3.4% a year ago. For 2026, management guided to slightly lower comparable sales and an operating profit margin below the prior year, with Kuhn expected to be roughly stable on sales and margin, Municipal slightly lower, Hydraulics slightly higher, Emhart significantly lower, and Specials slightly higher sales but lower margin due to restructuring and weak Vaslin demand.

Matthias Kuemmerle framed his first months as CEO around visiting sites, praising employee expertise and customer focus, and emphasizing Bucher’s innovation pipeline, automation, and energy efficiency. Strategically, he stressed profitable growth, selective acquisitions, continued cost work, and keeping R&D intact rather than cutting into the business, while saying the company is well positioned with local production and decentralized operations. His tone was confident but realistic: he repeatedly said the first half likely marked the trough for several businesses, but he also acknowledged that the ag recovery has been delayed again and that the full-year outlook had to be adjusted.

Manuela Suter focused on the balance sheet and cash generation. She said the net financial result was positive CHF 4 million, taxes were CHF 21 million at a 19.2% rate, operating free cash flow was CHF -73 million due to seasonal working-capital buildup and dividend/buyback outflows, and net cash stood at CHF 278 million with an expectation of around CHF 400 million by year-end absent major acquisitions. She also noted RONOA after tax of 12.7%, capex at 2.8% of sales in the first half, and full-year capex likely around CHF 140 million, maybe slightly below CHF 150 million. Her commentary emphasized a very solid balance sheet, almost debt-free status, and continued flexibility for organic investment, M&A, and dividends.

Analysts pressed management on whether Kuhn could still deliver a stable year after a weak first half, and management said the seasonality means the second half can still support the prior-year level, though the target is now below what was implied earlier in the year. On Brazil and agriculture, management said high interest rates, fertilizer costs, and financing-heavy equipment purchases are suppressing farmer investment, but they do not expect a wave of bankruptcies; farmers are conserving cash and waiting for a cycle turn. Questions on Emhart Glass centered on when recovery could accelerate; management said post-COVID overcapacity is still being worked through, but larger machine projects and a more normal investment environment should return gradually, with margins improving toward the second half of last year. Analysts also asked about capital allocation and the Bucher Automation reorganization, and management said they will keep balancing organic investment, M&A, capex, and dividends while providing adjusted reporting transparency for the new structure.