HUBER+SUHNER increases sales and profit in the first half of 2025

The economic environment in the first half of 2025 was characterised by significant uncertainty, primarily due to the announcement of US import tariffs and ongoing geopolitical conflicts. These factors had a noticeable impact on the investment climate in certain markets. Under these challenging conditions, HUBER+SUHNER achieved a good result during the reporting period. Thanks to the continuous demand for the company’s connectivity solutions in various applications, order intake in the first six months of the year amounted to CHF 516.6 million, reaching the exceptionally strong level of the previous year.

Net sales increased by 3.6% to CHF 445.9 million, substantially supported by the positive development of the growth initiatives Aerospace & Defense, Data Center, and Rail Communications. The EMEA region contributed 54% (PY 55%) to overall sales, while APAC and the Americas each accounted for 23% (PY 27% and 18% respectively). This represents a shift primarily from Asia to the Americas. Adjusted for currency, copper price, and portfolio effects, sales rose by 6.2%. With a book-to-bill rate of 1.16 and an order backlog of CHF 342.1 million as of the end of June 2025, the company is well-positioned for the second half of the year.

Operating profit (EBIT) increased by 8.5% to CHF 45.0 million during the reporting period; the EBIT margin improved by 50 basis points to 10.1%. This positive development was attributable to a favourable business mix, which more than offset the overall higher costs. Net profit reached CHF 36.6 million, an increase of 5.3% compared to the prior-year value.

The free operating cash flow amounted to a high CHF 35.3 million after six months. This was due to lower receivables and inventories. The number of employees worldwide stood at 4’058 – slightly below the figure at the end of June 2024 – and almost unchanged in Switzerland at 1’173.

Industry segment increases order intake and sales – strong contribution from Aerospace & Defense

The Industry market segment recorded order intake of CHF 170.7 million in the first six months of 2025, which is 3.0% higher than in the first half of 2024. The positive order momentum seen at the end of the previous year was thus maintained. Net sales increased by 15.0% to CHF 155.1 million, resulting in a book-to-bill rate of 1.10. The double-digit sales growth was primarily attributable to the strong development of the Aerospace & Defense growth initiative, which benefited from rising defense spending and investments in commercial satellite programmes. Thanks to improvements in the market environment for Test & Measurement and High Power Charging, the two subsegments also recorded higher sales and significant increases in order intake. The EBIT margin in the Industry segment was almost unchanged at 16.9%, which is 10 basis points below the value in the first half of 2024.

Communication segment keeps sales steady thanks to Data Center growth initiative and improves profitability

Following the strong business volume of the previous year, the Communication market segment was able to largely compensate for the loss of a major mobile infrastructure project in India. Order intake decreased by only 6.8% to CHF 200.2 million compared to the prior-year period. The Data Center growth initiative significantly contributed to limiting the decline in orders and also supported overall sales thanks to the continued demand for optical switches, particularly in connection with the expansion of AI infrastructure. As a result, the segment was able to maintain net sales at CHF 154.1 million, almost on par with the first half of 2024, despite declines in the subsegments Mobile Network and Fixed Access Network. The book-to-bill rate was a high 1.30. The EBIT margin of 8.0% was 130 basis points above the prior-year value.

Transportation segment records higher order intake with sales slightly lower

The Transportation market segment recorded a 3.8% higher order intake of CHF 145.8 million in the first half of 2025, thanks to positive impulses from the Railway business. Net sales of CHF 136.8 million represented a slight decline of 2.2% from the prior-year period. The book-to-bill rate was 1.07. The Railway subsegment showed a solid development and benefited, among other factors, from continued demand in the Rail Communications growth initiative. Overall, this helped offset the significant decline in the Automotive subsegment. The Electric Vehicle growth initiative experienced lower business volumes, although the first signs of a slight recovery emerged towards the end of the reporting period. The EBIT margin was 8.4%, which is 50 basis points below the prior-year level.

Outlook

Based on the order volume in the first six months of 2025, HUBER+SUHNER expects to sustain the solid sales development in the second half of the year, particularly in the growth initiatives Aerospace & Defense, Data Center, and Rail Communications. The drivers and trends in these target markets remain positive. The company continues to believe in the potential of the electrification of commercial vehicles and expects a revival of this business in the medium term. Overall, HUBER+SUHNER is in a position to compensate for weaker phases in individual markets or regions thanks to its broadly diversified business model.

It remains to be seen how the economic challenges arising from the current environment will affect customer investment activities. This significantly restricts visibility, which is why HUBER+SUHNER refrains from narrowing its guidance at the current time. For the 2025 fiscal year, the company continues to expect to achieve sales at the prior-year level and an EBIT margin within the medium-term target range of 9–12%. The guidance assumes that key influencing factors such as inflation, exchange rates, economic developments, and geopolitical conflicts do not excessively impact business operations.

Urs Kaufmann

Chairman of the Board of Directors

Urs Ryffel

Chief Executive Officer