SFS Group AG

SFS reported first-half 2026 sales of CHF 1.559 billion, up 1.3% year over year, with organic growth of 4% and currency headwinds of minus 4.2%. Adjusted EBIT came to CHF 206 million, for a 13.3% adjusted EBIT margin; reported EBIT was CHF 211.2 million, for 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 versus the prior year. Free cash flow was CHF 121 million, in line with the prior year, with EBITDA conversion of 43.7%, and the equity ratio was 58.9% versus 60.3% last year. For 2026, management confirmed guidance of 3% to 6% growth in local currencies including scope effects and an adjusted EBIT margin of 12% to 15%.

Jens Breu said SFS’s local-for-local model, diversified end-market exposure and mission-critical products helped the company navigate ongoing upheaval and disrupted supply chains. He emphasized that the streamlining program is sharpening the company’s focus on core activities, aligning capacity with demand and strengthening profitability over the midterm. He also framed acquisitions and technology expansion as part of a broader strategy to build market access, especially in aerospace and industrial distribution.

Volker Dostmann highlighted that the strong first-half result came despite a CHF 64.8 million FX drag and uneven demand, with local-currency growth of 5.5% above the guidance range and organic growth of 4%. He pointed to adjusted EBIT of CHF 206 million, EBITDA of CHF 273.7 million, EPS of CHF 3.82, and free cash flow of CHF 121 million, while noting CapEx was only 2.3% of sales versus D&A of 4.2%. He said net working capital rose mainly from acquisitions and electronics growth, but expects it to normalize later in the year, and reaffirmed midterm CapEx of 4% to 6% of sales and cash conversion of 40% to 50% of EBITDA.

Analysts pressed management on pricing, margins, CapEx, tariffs, the mobile phone cycle, HDD exposure and whether Europe is seeing an industrial recovery. Management said price increases were limited in Engineered Components, more meaningful in Fastening Systems and selective in Distribution & Logistics, with no major one-off prebuying effects. On margins, they said EC will likely be flatter in the second half due to a less seasonal electronics mix, while D&L’s margins should ease somewhat as favorable pricing and low input costs normalize. They also said U.S. tariffs were more of an administrative burden than a major P&L issue, that HDD sales are targeted at CHF 80 million to CHF 100 million annually and should stay relatively stable, and that Europe still looks challenged with any broader recovery likely taking 6 to 12 months.