SFS Group AG

SFS reported H1 2026 sales of CHF 1.559 billion, up 1.3% year over year; local-currency growth was 5.5%, organic growth was 4%, and currency effects reduced sales by CHF 64.8 million, or 4.2%. Adjusted EBIT was CHF 206 million with a 13.3% margin, while reported EBIT was CHF 211.2 million with a 13.6% margin. EBITDA was CHF 273.7 million, or 17.6% of sales, and EPS was CHF 3.82, up CHF 0.96 year over year. Free cash flow was CHF 121 million, and equity ratio was 58.9%. For 2026, management reaffirmed guidance for 3% to 6% growth in local currencies including scope effects and an adjusted EBIT margin of 12% to 15%.

Jens Breu emphasized that SFS’s local-for-local model, diversified end-market exposure, and mission-critical products helped the group navigate supply-chain disruption and market volatility. He framed the company’s strategy as unchanged, with continued focus on core activities, targeted acquisitions, technology, and solid financing. His tone was constructive but cautious, especially on Europe, where he said the industrial market has likely bottomed but is not yet clearly in recovery.

Volker Dostmann highlighted that reported sales were held back by the stronger Swiss franc, which cut sales by CHF 64.8 million, and that M&A added 1.5% to growth. He said personnel expense ratio declined by 1.1 percentage points and operating expense ratio improved by 0.4 percentage points, supporting the 13.3% adjusted EBIT margin. On cash, he noted free cash flow of CHF 121 million, EBITDA conversion of 43.7%, CapEx at 2.3% of sales versus D&A of 4.2%, and an equity ratio of 58.9%; he also reiterated a midterm CapEx range of 4% to 6% of sales and a free-cash-flow target of 40% to 50% of EBITDA.

Analysts focused on pricing, margins, CapEx, tariffs, electronics demand, and whether Europe is turning. Management said price increases were mostly limited and selective, with no substantial one-off prebuying, and that second-half electronics margins should look flatter than usual because the mobile-phone cycle is less seasonal this year. On tariffs, management said the U.S. impact was limited in H1 because local-for-local sourcing helped offset it, and any recoveries are only low single-digit millions. On HDD and smartphones, management said HDD demand remains stable around CHF 80 million to CHF 100 million of annual turnover, while AI-related smartphone applications are not yet material enough to change the picture.