Feintool International Holding AG

For FY2025, Feintool reported group sales of CHF 661.4 million. EBIT was CHF 4.7 million, compared with CHF 49.3 million in the prior year before restructuring effects; management also said adjusted EBIT in the prior year was minus CHF 2.2 million. EBITDA was CHF 55.6 million versus CHF 51.9 million last year, and net income was a loss of CHF 8 million. On the balance sheet, equity ratio was 55.6%, net debt was CHF 57.7 million, and assets were CHF 770 million. Cash flow from operations was around CHF 27 million, supported by around CHF 28.5 million from working capital, while operative investments were CHF 55.7 million, leaving free cash flow nearly neutral. For 2026, management expects uneven market development, continued weakness in Europe, stronger momentum in the U.S. and Asia, further EBIT margin improvement in local currencies, much lower capital spending, and a focus on free cash flow. The company reaffirmed its midterm target of an EBIT margin above 6%.

Lars Reich framed 2025 as a year of resilience in a still-challenging market and emphasized that the restructuring in Europe has already lowered the breakeven level. He stressed that Feintool is strategically positioned for the shift toward Asia, electrification, and hybrid powertrains, while still benefiting from the extended life cycles of traditional combustion and hybrid programs. His tone was cautious on the near term but constructive on the medium term, pointing to new orders in e-motor cores, the India plant, and opportunities in data-center cooling and hybrid applications.

Thomas Erne said the company delivered a solid top-line result despite sales being 8% below prior year, or down around 4.5% in currency-adjusted terms. He highlighted EBITDA of CHF 55.6 million, a material cost ratio improvement to around 47% from 52%, and personnel cost reductions of CHF 6.6 million tied to structural adjustments. He also noted net debt of CHF 57.7 million, an equity ratio of 55.6%, positive operating cash flow of around CHF 27 million, and operative investments of CHF 55.7 million, which he described as the end of the high-investment cycle.

In Q&A, management was asked about the product mix between electrification and traditional parts, and Lars said Feintool is benefiting from longer life cycles for hybrid and combustion programs while continuing to invest in electrification. Another question focused on apparent market-share loss in Asia; management replied that it had not lost major programs, but that customer-side program changes and intense competition in China affected volumes. Lars also emphasized China and India as important growth markets, including a new Indian plant planned to start production in 2026 and the growth of e-motor sales to Chinese OEMs.