Georg Fischer AG

GF Flow Solutions sales were close to CHF 1.6 billion in H1, up 5.7% organically. Comparable EBITDA margin was 13.4% and comparable EBIT margin was 10%; industry posted 18.8% comparable EBITDA margin, infrastructure 9%, and buildings 12.6%. FX reduced group sales by CHF 91 million and EBITDA by CHF 20 million. Group reported EBITDA was CHF 29 million, and normalized net profit was CHF 117 million. Free cash flow before M&A was CHF 35 million, cash and cash equivalents were CHF 448 million, and net debt was around CHF 1.6 billion. For the full year, GF raised sales guidance to mid-single digit organic growth, with comparable EBITDA margin unchanged at 14%-16%. CapEx for Flow Solutions is expected to be CHF 100 million-CHF 110 million. Management also said Precicast could contribute a book gain of CHF 30 million-CHF 40 million at closing.

Andreas Müller framed the first half around three priorities: operational excellence, free cash flow generation and debt reduction, and profitable growth. He highlighted strong execution in a difficult market, with proactive pricing, supply-chain actions, portfolio simplification, and a leaner organization that is now expected to deliver more than the original CHF 40 million Fit for Growth target. His tone was constructive and confident, especially on semiconductors, data centers, and infrastructure, where he said GF is seeing record or strong demand and expects these trends to support Strategy 2030.

Mads Jørgensen focused on the financial bridge and the one-off-heavy first half. He said FX cut sales by about CHF 88 million and EBITDA by CHF 20 million at Flow Solutions level, while organic growth and the VAG consolidation supported results. He also noted CHF 172 million of deconsolidation loss tied to Casting Solutions, CHF 15 million of restructuring, and total EBIT-level items of CHF 197 million; cash and cash equivalents were CHF 448 million, net debt was around CHF 1.6 billion, and leverage was 4x on covenant definitions, with expected year-end leverage of 2.4x-2.8x after Precicast.

Analysts pressed on whether the strong H1 order intake should translate directly into H2 sales, and management said some orders have tenures beyond the second half, so guidance remains cautious. On margins, management said H2 should be more profitable than H1, but the full-year 14%-16% EBITDA range was reaffirmed; the upper end would require a substantial further increase in semiconductor and data center sales. Questions on pricing and COGS were answered with comments that H1 pricing contributed 1.5% to top line and should be 2%-2.5% by year-end, while lower COGS growth was mainly due to mix, FX, and footprint optimization rather than a new cost shock.