EMS-Chemie Q3 sales dip 6%, guidance confirmed; China unit now fully owned

Published 16/10/2025, 09:48
© Reuters

Investing.com -- Shares of EMS-Chemie were largely unchanged on Thursday after the company reported third-quarter sales of CHF471 million, down 6% from the same period last year and slightly below analyst expectations.

The Swiss chemical company’s organic sales fell 2% in the quarter, marking an improvement from declines of 4.8% in Q1 and 2.4% in Q2, though sales remained affected by a challenging macroeconomic environment. 

EMS noted strong performance in Asia and market share gains in its specialty products.

The High Performance Polymers division posted CHF430 million in sales, down 1.3% organically from a year earlier and essentially in line with forecasts.

The Specialty Chemicals segment recorded CHF42 million in sales, a 22% decline year over year and 9% below consensus estimates. Foreign exchange effects contributed a 4.4% negative impact, as anticipated.

EMS also announced that it would buy Huayi’s 25% minority stake in its Chinese EFTEC unit, raising its ownership to 100% effective Oct. 28. 

The acquisition will be financed from cash on hand. Analysts estimate the unit generates approximately CHF150 million in annual revenue and that the transaction could result in a cash outflow of CHF160-210 million, representing roughly 25-35% of EMS’s projected free cash flow for 2025.

The company maintained its full-year guidance, projecting sales below the previous year at under CHF2.07 billion and earnings before interest and taxes slightly above last year’s CHF539 million, implying a 5-9% increase.

Consensus expectations ahead of the results were CHF1.95 billion for sales, a 5.8% decline, and EBIT of CHF551 million, a 2% increase.

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