Schweizer Electronic Posts Business Development in 1H of 2025

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The SCHWEIZER Group has continued its growth path and achieved sales of EUR 82.2 million in the first half of 2025.

Order Backlog

At the end of the first half of 2025, the SCHWEIZER Group had an order backlog of EUR 225.8 million (31 December 2024: EUR 220.4 million). Order intake in the trading segment was very dynamic, particularly due to the start of series production of the SCHWEIZER embedding technology, and recorded double-digit growth, whereas the order situation for in-house production declined. The order backlog for 2026 and subsequent years amounts to EUR 150.9 million.

Revenue development

In the first half of 2025, sales rose by 10.7 percent to EUR 82.2 million (previous year: EUR 74.3 million). Sales from in-house production amounted to EUR 27.8 million, corresponding to a decline of 37.8 percent. In contrast, sales in the trading segment rose by 83.8 percent to EUR 54.4 million. The implementation of the Fab-Light strategy and rising demand for embedding technology for automotive customers led to growing success of the strategic partnerships.

Market segments and regions

Sales to automotive customers amounted to EUR 68.7 million, an increase of 15.8 percent compared to the previous year. The increase in sales in the automotive sector and the decline in the industrial sector led to an automotive share of 83.5 percent of sales (first half of 2024: 79.9 percent). For the first time, the major sales market was outside Germany with Europe, with a sales volume of EUR 34.7 million an increase of 47.7 percent, which was larger than the domestic market. In contrast, the German market was significantly weaker compared to the first six months of the previous year, with a sales volume of EUR 23.6 million, a decline of 23.6 percent. The American market developed particularly positively, with an increase of 60.6 percent compared to the previous year.

Results and profitability

EBITDA (earnings before interest, taxes, depreciation and amortisation) for the first half of 2025 amounted to EUR -1.1 million (previous year: EUR 0.1 million), corresponding to an EBITDA margin of -1.4 percent. Profitability was negatively impacted by underloading of the Schramberg site, higher material costs, the negative development of the US dollar and changes of the product mix. Stringent cost management had a strong impact in the second quarter, enabling EBITDA to turn around despite ongoing underloading of the Schramberg site.

Financial position and equity

The equity ratio fell to 14.1 percent (31 December 2024: 21.1 percent). In addition to the operating result, write-downs on hidden reserves in investments accounted for using the equity method also had a negative impact on equity. Although debts were repaid, cash and cash equivalents increased significantly and amounted to EUR 12.0 million at the end of the first half of the year (31 December 2024: EUR 8.2 million). Long-term and short-term financial liabilities decreased to EUR 20.4 million.

Forecast

The Executive Board expects moderate sales growth between EUR 145 million and EUR 165 million for the current financial year. The current order situation allows for an increase of EUR 15 million in the lower forecast value compared with the most recent estimate communicated in April.

The earnings situation remains under pressure. Rising material costs, ongoing underloading of the production site in Schramberg and the weak US dollar are having a particularly negative impact. The ongoing cost-cutting measures are being implemented as planned and are increasingly helping to ease the burden.

Based on the half-year results and the outlook described above, the Executive Board expects an adjusted EBITDA of between EUR 2 million and EUR 6 million. Any restructuring expenses that may arise are not included in this earnings forecast. The 2025 financial year is expected to be a transition phase in terms of costs; the efficiency measures taken are expected to be fully effective in 2026.