Key investor takeaways:
- Record 2025 financials: Sales CHF 6.95bn (highest in CHF), adjusted operating income CHF 1.1bn (16% margin), earnings per share CHF 3.48 (12.3% including HQ disposal), and record free cash flow CHF 774m (57% cash conversion). Including HQ disposal proceeds, total free cash flow was CHF 841m. ROIC remained strong at ~24%.
- Solid underlying performance: Organic growth 5.6% in 2025, M&A contributed 1.7% (7.3% growth in constant currency). All regions contributed, with particularly strong organic growth in Asia Pacific and Latin America; North America organic growth 3.9%.
- M&A and strategic footprint: ATS acquisition (closed Jan 2026) significantly strengthens North America and complements Strategic Plan 27. Bolt-on activity added ~CHF 190m of annual sales (several small acquisitions across sustainability, digital trust, environmental testing, food safety, cybersecurity, etc.).
- Cost and efficiency gains: Lean operating model and procurement actions delivered CHF 115m P&L benefit to date with CHF 150m run rate reached end-2025; an additional CHF 35m is expected to flow through in 2026. These actions supported margin expansion versus plan.
- 2026 guidance and policy: Management targets organic growth of 5–7% for 2026, expects acquisitions (including ATS and bolt-ons) to add >5% sales, and will maintain at least a 16% adjusted operating income margin in reported terms (retaining flexibility to invest excess savings into innovation/digital solutions). Dividend CHF 3.20 per share proposed as a scrip dividend (share or cash).
- Balance sheet & FX: Net debt/EBITDA was 1.7x at year-end 2025; closing ATS will push leverage temporarily to ~2.1–2.2x before gradual reduction. Swiss franc appreciation was a meaningful headwind (~-5.1% on sales; ~-20bp on AOI margin). Management flags ongoing FX risk into 2026 (Q1 exposure noted).
- Segment notes & risks: Strong performances in Health & Nutrition, Connectivity & Products, and Industries & Environment. Natural Resources showed mixed results (minerals strong, agriculture impacted by poor crops, oil & gas moderate). Business Assurance saw strong sustainability and digital trust growth but consulting and some ISO certification activity remained soft. Key risks: FX volatility, regional/political uncertainty (E/ME/AF), cyclical exposure in Natural Resources, and potential continued softness in consulting projects.
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