HUBER+SUHNER achieves record order intake and higher profit

The year 2025 was marked by geopolitical and economic uncertainties, including the introduction of significant trade barriers. In this challenging environment, HUBER+SUHNER was able to perform very well, strengthening its position in important target markets. This led to more than a billion Swiss francs in orders, organic sales at the prior-year level and increased profit.

Order intake in 2025 amounted to CHF 1’032.0 million, 13.7% above the 2024 figure and balanced over both halves of the year. The strong development was mainly due to progress in the Data Center growth initiative in the Communication segment as well as broad-based demand in the Industry segment. At the end of December, the order backlog stood at CHF 432.2 million. The book-to-bill rate was 1.19, compared to 1.02 in the previous year.

Due to the strong Swiss franc, net sales declined by 3.3% to CHF 864.1 million in 2025. Adjusted for currency, copper price and portfolio effects, sales amounted to CHF 894.7 million, corresponding to the prior-year level. After a major project in India had led to a significant increase in sales in the Asia-Pacific region in the previous year, momentum shifted in 2025 to the American market, in particular. This was partly thanks to the positive development in the Industry segment. The EMEA region also recorded slight growth. The distribution of sales at the end of December was as follows: 55% (PY 50%) in EMEA, 21% (PY 31%) in Asia-Pacific, 24% (PY 19%) in the Americas.

The gross margin increased to 37.9% in 2025, up from 35.4% in the previous year. This was a result of growth in higher-margin business, which also helped offset additional costs due to US import tariffs. The company once again invested a high CHF 61.5 million in research and development, representing 7.1% of net sales, to further strengthen its position and differentiation in key markets through continuous innovation. The number of employees at the end of the reporting year was 4’224 (PY 3’975) and 1’176 (PY 1’164) in Switzerland.

Operating profit (EBIT) improved by 4.9% year-over-year to CHF 90.8 million. The EBIT margin rose by 80 basis points to 10.5%. Thanks to the continued low tax rate, net income increased by 3.6% to CHF 74.9 million, which corresponds to earnings per share of CHF 4.03.

Free operating cash flow amounted to CHF 69.5 million at the end of 2025, impacted on the one hand by high investment activities and on the other hand by the active management of net working capital. Net liquidity increased to CHF 211.1 million. The return on invested capital (ROIC) rose to 17.1% from 16.8% in 2024.

Different dynamics in target markets

HUBER+SUHNER’s target markets are subject to different cycles, trends and development stages of the technologies demanded by customers. This was once more reflected in the segments’ individual 2025 results, while the broad diversification of the product portfolio contributed to resilience overall.

After HUBER+SUHNER’s business had benefitted significantly from a major project in India in the previous year, the company sought to close the gap after the end of the project, primarily through progress in its growth initiatives. Three out of four of these initiatives – Aerospace & Defense, Data Center and Rail Communications – showed a positive development, while the Electric Vehicle growth initiative again remained below expectations in 2025.

Industry segment achieves double-digit growth and strengthens profitability

In 2025, the Industry segment recorded broad-based demand for connectivity solutions for diverse applications, steadily gaining momentum over the course of the reporting period. Order intake in the segment increased by 16.2% to CHF 355.7 million. All subsegments – Test & Measurement, High Power Charging, General Industrial, and particularly the Aerospace & Defense growth initiative – developed positively. Net sales climbed by 17.5% to CHF 325.2 million, also thanks to a strong contribution from the growth initiative, which benefitted from rising defense budgets and continued investments in commercial satellite programmes. The book-to-bill rate at the end of December was 1.09. The EBIT margin in the Industry segment improved by 100 basis points to 18.0%.

Demand in the Data Center growth initiative leads to order growth in the Communication segment

Thanks to major orders for optical circuit switches (OCS) from a global operator of hyperscaler data center infrastructures, order intake in the Communication segment increased by a total of 21.9% to CHF 418.3 million in 2025. The OCS orders are expected to lead to significant sales for the Data Center growth initiative starting in 2026. In contrast, generally weak demand in the communications market impacted the Mobile Network and Fixed Access Network subsegments, which saw declining business volumes. Compared to the prior-year period, which included the aforementioned India project, net sales fell by 22.4% to CHF 274.4 million. The book-to-bill rate was 1.52 at the end of December. The EBIT margin declined by 20 basis points to 7.9%.

Transportation segment with stable business volume and improved profitability

After a decrease in the previous year, the Transportation segment stabilised in 2025. Order intake and net sales were almost unchanged at CHF 258.0 million and CHF 264.5 million, respectively, resulting in a book-to-bill rate of 0.98. The larger Railway subsegment recorded higher sales while orders remained stable, with the Rail Communications growth initiative making a positive contribution. In contrast, the Automotive subsegment recorded lower sales while order intake showed a slightly positive trend. The Electric Vehicle growth initiative continued to perform below expectations, with no signs of a significant market upturn in 2025. The segment’s EBIT margin recovered compared to the previous year, rising by 70 basis points to 8.0%.

Sustainability reporting

HUBER+SUHNER’s connectivity solutions meet human needs for environmentally friendly mobility, seamless communication and personal safety. The company places customer value at the centre of its business activities while focussing on sustainability. The 2025 Non-financial Report describes the progress made by the company in its sustainability strategy. It covers the obligations formulated under Article 964b of the Swiss Code of Obligations, the Ordinance on Due Diligence and Transparency in Relation to Minerals and Metals from Conflict-Affected Areas and Child Labour (DDTrO), as well as the Climate Ordinance.

In 2025, the new climate targets submitted by HUBER+SUHNER were verified by SBTi (Science Based Targets initiative) – an important milestone. By 2030, the company aims to reduce absolute emissions by 55% in Scope 1+2 (operational emissions) and by 25% in Scope 3 (emissions that arise in the upstream and downstream value chain). In the reporting year, HUBER+SUHNER also reached the Scope 1+2 targets already validated by SBTi in 2017. Furthermore, the sustainability reporting was prepared with reference to the European Sustainability Reporting Standards (ESRS). The 2025 Non-financial Report is available at https://reports.hubersuhner.com/2025/ar/.

Risk management

As part of continuous risk management, the Board of Directors assessed the corporate risks at its meeting on 4 December 2025 and adopted the 2025 risk report including defined measures.

Dividend

The Board of Directors proposes a higher dividend of CHF 2.00 per share to the Annual General Meeting, compared to CHF 1.90 in the previous year. This would result in a payout ratio of 50%, at the upper end of the defined range of 40–50%.

Outlook

In an environment characterised by uncertainty in 2025, HUBER+SUHNER strengthened its position in key target markets and significantly improved its profitability. A strong contribution was made by the Industry segment, which created a good starting point for 2026 on the back of increasing momentum throughout last year. For the Aerospace & Defense growth initiative, in particular, continuous sales growth is expected. In the Communication segment, it is important to deliver on the high order backlog in the Data Center growth initiative and to unlock further business opportunities. The successful ramp-up of OCS production capacity is an essential prerequisite for this. In the Transportation segment, the Rail Communications growth initiative in the Railway business should continue to develop positively and, in the medium term, the market for electromobility solutions in the commercial vehicle sector is expected to pick up.

HUBER+SUHNER has innovation, customer proximity and operational excellence at its heart. These strengths, demonstrated by very committed and capable colleagues across the entire organisation, shape the company’s culture and are continuously being built on. Diversification, a focus on attractive growth markets, and employees’ contribution ensure resilience and sustainable success – even in challenging times.

Due to the good order backlog and the positive momentum in its growth initiatives, HUBER+SUHNER expects to achieve organic sales growth of at least 10% in 2026. The medium-term target range of 9–12% for the EBIT margin remains in place. For the current fiscal year, the company seeks to reach an EBIT margin within the upper half of the target range. The guidance assumes that key influencing factors such as inflation, exchange rates and geopolitical tensions do not have an excessively negative impact on the business.

Thank you

On behalf of the Board of Directors and the Executive Group Management, we would like to express our gratitude to all employees worldwide for their continued commitment and high level of engagement. It is thanks to their contribution and reliable performance that HUBER+SUHNER was able to develop favourably in the past financial year. We would also like to thank our shareholders, customers and suppliers for their cooperative partnership, their loyalty and the trust they have placed in us.

Urs Kaufmann

Chairman of the Board of Directors

Urs Ryffel

Chief Executive Officer