Communication

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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%.

“Amid continued weakness in the general communication market, sales and profitability in the reporting period stayed below the prior-year level, which had benefited from a major mobile communication project in India. I am pleased with the strong order intake, which was mostly driven by the demand for optical circuit switch (OCS) technology for use in artificial intelligence hyperscaler infrastructure. This order success in our Data Center growth initiative is expected to deliver significant sales starting in 2026.”
Jürgen Walter, COO Communication segment

Our solutions in the Communication segment

Order growth thanks to demand for optical circuit switches for data centers

In the Communication segment, significant progress in the Data Center growth initiative – driven by major orders for optical circuit switches (OCS) in 2025 – was offset by declining business volumes in other subsegments.

Supported by investments in artificial intelligence infrastructure and given the requirements from growing data usage, demand for technologies such as OCS is likely to accelerate further. HUBER+SUHNER is working intensively to ramp up production in order to deliver on existing customer orders and to be able to meet additional demand.

In an overall cautious investment environment for fixed access and mobile communications, especially in Europe, significant infrastructure programmes continue to exist in markets such as India. Thanks to its global presence, the company is ideally positioned to capitalise on these opportunities as they arise. Additionally, HUBER+SUHNER is well positioned for future technology cycles such as 6G.