Sulzer Stock Earnings Reports

H1 2026 highlights: Sulzer delivered resilient profitability despite a challenging demand environment and geopolitical disruptions in the Middle East. Group order intake was down ~3.9% (driven by delayed large project decisions, especially in Chemtech's new technologies), while sales were roughly flat (+1% contextually) and EBITDA margin expanded to 15.5% (a ~110 bp improvement year-over-year). Flow and Services performed well: both divisions showed regained momentum in Q2, growing base/aftermarket business and improving margins. Chemtech remains in an accelerated transition—core MTCS (separation & purification) is stabilizing at a low level, but new-technology projects (biopolymers, carbon capture, SAF) are delayed; management has initiated additional cost reductions including a further ~10% headcount reduction (announced/executed in July) and organizational simplification. Free cash flow was impacted by a CHF ~100–117m increase in net working capital (partly from project timing and fewer large customer down payments), but management expects net working capital and cash flow to improve if larger, back-end-loaded H2 orders materialize (management expects many decisions to be Q4). Guidance reiterated: full-year 2026 order intake +1% to +5%, sales +2% to +5%, and EBITDA margin around 16.5%. Key risks: timing/receipt of large orders (particularly in Chemtech new technologies) and geopolitical escalation in the Middle East could delay or cancel projects; working capital sensitivity to project timing.