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Investing.com -- Burckhardt Compression reported first-half results that exceeded analyst expectations, with sales, EBIT, margin, and net income all coming in above the top end of consensus ranges.
The strong performance was primarily driven by solid backlog execution and higher divisional operating margins.
The Systems division was the main contributor to the outperformance, with sales increasing 12.3% year-over-year and achieving a solid 10.2% EBIT margin. In contrast, the Services division had a surprisingly slow start in Q1, though it showed improvement in Q2, resulting in a 16.4% year-over-year sales decline.
Despite the positive earnings results, the company’s shares fell 3.3% as new orders missed expectations across the group and both divisions. The company attributed the lower order intake to tariff-related deferrals, particularly in Petrochemicals and China LDPE/EVA sectors.
Burckhardt Compression maintained its full-year 2025/26 guidance, projecting sales of approximately CHF1.1 billion and an EBIT margin similar to fiscal year 2024/25. The company expects a stronger second half of 2025/26 due to favorable mix effects and confirmed it remains on track to achieve its Mid-Range Plan targets for fiscal year 2027/28.
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