Huber+Suhner AG H1 profit up 8.5% on aerospace, defense and data center demand

Investing.com -- Swiss connectivity solutions provider Huber+Suhner AG (SIX:HUBN) posted an 8.5% increase in operating profit for the first half of 2025, lifted by demand in aerospace, defense and data centers that offset geopolitical uncertainty and trade pressures, the company said Tuesday.

Operating profit rose to CHF 45 million from CHF 41.5 million a year earlier, with the EBIT margin improving to 10.1% from 9.6%. 

Net income advanced 5.3% to CHF 36.6 million, or CHF 1.97 per share, up from CHF 34.8 million, or CHF 1.87, in the same period of 2024.

Net sales grew 3.6% to CHF 445.9 million, or 6.2% in constant terms. Order intake was steady at CHF 516.6 million versus CHF 521 million, producing a book-to-bill ratio of 1.16, while backlog fell 6.9% to CHF 342.1 million.

Profitability improved as gross margin widened to 37.7% from 36.2%. EBITDA rose 8.4% to CHF 63.8 million, equal to 14.3% of sales versus 13.7% a year earlier. Return on invested capital increased to 16.9% from 16.2%.

The balance sheet remained solid with equity at CHF 639.2 million, or 76.2% of total assets, up from 75.4%. Net liquidity advanced 17.4% to CHF 178.1 million. 

Free operating cash flow nearly doubled to CHF 35.3 million from CHF 19.4 million, supported by lower receivables and inventories, while operating cash flow rose 67.7% to CHF 63.3 million. Capital expenditure increased 23.1% to CHF 24.9 million.

By segment, Industry sales rose 15% to CHF 155.1 million, with EBIT up 14.4% to CHF 26.2 million and margin at 16.9%. 

Communication reported flat sales at CHF 154.1 million, with EBIT up 17.8% to CHF 12.3 million and margin improving to 8%. 

Transportation sales slipped 2.2% to CHF 136.8 million, with EBIT down 7.4% to CHF 11.5 million and margin at 8.4%.

Regionally, EMEA contributed 54% of sales, APAC 23% and the Americas 23%. The company employed 4,058 people worldwide at end-June, down 2.2% year-on-year, with the Swiss headcount stable at 1,173.

Huber+Suhner reiterated its forecast for full-year sales at the prior-year level and an EBIT margin within its medium-term target of 9% to 12%, citing continued strength in aerospace and defense, data centers and rail communications.