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Investing.com -- Schweiter Technologies stock fell 6% after the company reported a 4% year-over-year decline in organic sales for the first half of 2025, reflecting challenging market conditions across several business segments.
The Swiss composite materials manufacturer posted H1 sales of CHF494 million, down 6% on a reported basis compared to the same period last year, though this figure exceeded analyst consensus expectations of CHF475 million. EBITDA decreased by 5% year-over-year to CHF43 million, resulting in a slight margin improvement of 10 basis points to 8.8%.
Schweiter’s Display segment, which accounts for approximately 40% of total sales, saw an 8% organic decline due to weaker macroeconomic conditions in the US and Europe. The segment was also impacted by the pass-through of lower raw material costs in commoditized clear sheet products and customers delaying purchases in anticipation of price declines.
The company’s Architecture segment, representing about 20% of sales, showed growth in the US while experiencing weakness in Europe and the Asia-Pacific region, particularly China. Core Materials (20% of sales) benefited from easy comparisons and saw growth in wind-related applications.
Schweiter announced plans to divest its bus and rail business, which represents approximately 3% of sales, a move expected to improve margins and cash flow.
Looking ahead, the company maintained its cautious outlook, forecasting a mild organic sales decline for the full year 2025, which suggests relatively flat organic sales in the second half of the year. Recent cost-saving measures are expected to support improved profitability in H2.
"Mixed, mild downside risk to consensus for 2025E (with the beat in H1 25E on quite low consensus estimates). With -4% organic, Schweiter is at the lower end of some Swiss industrial companies sales trends. FCF ROIC is not exceeding cost of capital," noted UBS analysts.
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