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Investing.com -- R&S Group stock jumped 6.5% after the power transformer manufacturer reported first-half orders that exceeded market expectations, signaling robust demand across its key business segments.
The Swiss electrical equipment maker posted orders of CHF245 million for the first half of fiscal 2025, surpassing consensus estimates of CHF220 million. Net sales reached CHF206 million, slightly above the consensus forecast of CHF200 million, representing approximately 13.5% organic growth that was primarily volume-driven.
The company achieved a book-to-bill ratio of 1.19x, with its order backlog growing to CHF306 million from CHF278 million at the end of fiscal 2024, providing solid revenue visibility for the second half of the year.
R&S Group noted that demand for power transformers remains strong, while its cast resin transformer business is benefiting from a construction industry rebound in Germany and Poland, increased business activity in the Middle East, and emerging applications like harbor electrification.
The company maintained its fiscal 2025 guidance, continuing to expect organic sales growth of 10-13% and an EBIT margin of "around 20%."
Despite some challenges including labor scarcity among utility customers for installation tasks and delays in ramping up a new production facility in Poland, the strong order book appears to have reassured investors about the company’s growth trajectory.
UBS: "We expect a positive reaction in light of the order beat and the solid backlog supporting 2H25E revenue prospects. Our price target and rating are Under Review pending further analysis."
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