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Investing.com -- R&S Group reported first-half 2025 (1H25) earnings that narrowly missed market expectations, while confirming its full-year (FY25) guidance.
The company’s shares slipped 2.2% in European trading after the report.
The Swiss transformer maker posted EBIT of CHF40 million, just shy of the CHF41 million consensus, translating into a 19.5% margin.
Net income came in at CHF29 million, compared with the consensus of CHF29 million.
Net sales, as announced previously, came in at CHF 206.3 million.
Gross profit margin reached 46.4%, above the company’s earlier indication of “around 45%” for the year. UBS noted that the decline in EBIT margin from 23.2% in the prior year to 19.5% was largely due to the addition of the recently acquired Kyte unit.
"We expect the latter to have seen a mid-teens EBIT margin in 1H25," analyst Sebastian Vogel said in a note.
Free cash flow was CHF5 million, reflecting a working capital build-up and capex investment.
The company kept its 2025 guidance unchanged, targeting sales growth of 10–13% and an EBIT margin of “around 20%.”
Vogel highlighted that with first-half sales already above the annual growth range and the group’s new Poland-based plant now operational, “we rather expect limited changes to consensus EPS expectations.”
The analyst added that consensus is currently looking for FY25 sales of CHF428 million and an adjusted EBIT margin of 21.3%.
“We expect a positive reaction in light of the EBIT (reported) margin coming in above expectations,” Vogel concluded.