Bucher profit steady after one-off gain offsets 10.8% sales drop

Investing.com -- Bucher Industries AG (SIX:BUCN) on Tuesday reported a stable first-half profit of CHF 143 million for 2025, supported by a CHF 43 million gain from the sale of a property that lifted its operating margin to 11.6% from 10.3%. 

The Swiss machinery manufacturer’s net sales declined 10.8% to CHF 1.54 billion from CHF 1.72 billion a year earlier, while order intake rose 4.4% to CHF 1.29 billion.

Operating profit (EBIT) edged up to CHF 178 million from CHF 177.6 million in the prior-year period. 

The company said reduced volumes in several divisions weighed on operating profitability, partly offset by ongoing cost-saving measures. 

For the full year, Bucher expects slightly lower sales on a comparable basis and a somewhat lower operating profit margin when excluding the one-off property gain.

The number of employees fell 5.1% to 13,760, mainly in Germany and the United States, following adjustments at sites with low capacity utilisation.

Free cash flow strengthened sharply as operating free cash flow reached CHF 95.7 million, compared with a negative CHF 50.5 million a year earlier. 

Net cash stood at CHF 327 million at the end of June, up from CHF 186 million, while the equity ratio rose to 67%. 

Return on net operating assets after tax was 18.7%, down from 19.1%. The group said its financial position remained solid, with lower inventories contributing to cash generation.

The Kuhn Group division, which manufactures agricultural machinery, posted a 28% rise in order intake to CHF 416 million as demand improved in Europe and Brazil. 

Sales fell 12% to CHF 618 million. The division maintained an operating margin of 9.9%, supported by lower material costs.

Bucher Municipal, the company’s municipal vehicle business, increased sales by 1% to CHF 289 million, driven by demand for compact and sewer cleaning vehicles. 

Orders for truck-mounted sweepers and winter maintenance equipment fell. The operating margin improved to 9.1% from 8.2%.

Bucher Hydraulics, which produces hydraulic and electronic systems, recorded a 6% increase in order intake to CHF 321 million but saw sales decline 10% to CHF 319 million. 

The division’s operating margin dropped to 9.7% from 11.6% due to lower capacity utilisation and integration costs following acquisitions.

The glass machinery unit, Bucher Emhart Glass, reported a 28% fall in order intake and a 23% decline in sales to CHF 192 million as customers delayed investments. Its operating margin narrowed to 13.4% from 18.5%.

Bucher Specials, which includes beverage processing and automation technologies, recorded a 9% fall in sales to CHF 155 million.

The operating margin fell to 0.7% from 2%. The division acquired Germany’s Banke GmbH in June to expand its beer processing operations.

During the first half, Bucher Industries acquired Finland’s Hydman Oy, now operating as Bucher Hydraulics Oy, for CHF 18.2 million. 

The transaction generated CHF 11.1 million in goodwill, offset against equity. The company also repurchased 0.8% of its share capital for CHF 31 million under a buyback program launched in May 2025.