Avolta AG

Turnover was CHF 6.437 billion, up organically 3.7% year over year; excluding the Middle East crisis, organic growth would have been 5.2%. Core EBITDA was CHF 583 million with a 9.1% margin, versus 9.5% excluding Middle East and ramp-up effects. Equity free cash flow was CHF 207 million, versus CHF 216 million last year, with Q2 cash flow of CHF 370 million. Gross profit margin fell 20 bps year over year, and leverage decreased to 2.07x, down about 0.1 turn. Looking ahead, Avolta kept its midterm outlook unchanged at 5% to 7% organic growth, 20 to 40 bps annual EBITDA margin expansion, and higher equity free cash flow, while noting July organic growth is expected to be more than 4%.

The CEO framed the quarter as resilient despite significant external and temporary headwinds, especially the Middle East crisis, Pudong and JFK ramp-up, and the Spirit Airlines bankruptcy. He emphasized that the company is investing confidently in large strategic wins and selective M&A, while also building a data and technology platform to improve pricing, assortment, inventory, and labor efficiency. His tone was cautiously optimistic for the near term and more optimistic on the mid- to long-term outlook.

The CFO highlighted CHF 6.437 billion of turnover, CHF 583 million of core EBITDA, a 9.1% EBITDA margin, and CHF 207 million of equity free cash flow. He said gross profit margin declined 20 bps, concession and personnel expenses were slightly higher as a percentage of sales, and the Middle East and ramp-up effects explain the gap to a 9.5% margin on a normalized basis. He also noted leverage of 2.07x, a balanced maturity profile, and said the 2027 bond maturity will be refinanced later this year.

Analysts focused on how long Pudong and JFK would pressure margins and when those businesses would normalize; management said the effects should fade quarter by quarter but likely last through 2026, with full potential only in 2027. Questions also probed cash flow phasing and CapEx, and the CFO said H1 CapEx was a bit lighter because of timing shifts, with some catch-up possible in H2 but net impact likely neutral. Other questions covered regional margin differences, EMEA scope changes, Club Avolta growth, and the Oceania/Japan acquisition; management said the regional swings were mostly driven by temporary issues and that Club Avolta growth is broad-based, with higher penetration in more frequent-flyer airports.