Earnings call transcript: SGS reports solid Q3 2025 growth amid strong demand

SGS SA (SGSN) reported a robust performance in its third-quarter earnings call, showcasing a 6% organic sales growth and strategic acquisitions that have bolstered its market position. With a market capitalization of $22.1 billion and a stable beta of 0.59, the company has maintained its upward trajectory despite currency challenges, advancing significantly in digital trust services and sustainability initiatives. The stock, however, saw a slight decrease of 0.5%, closing at 2,600 CHF. According to InvestingPro data, SGS offers an attractive dividend yield of 3.66%.

Key Takeaways

• SGS achieved a 6% organic sales growth in Q3, reaching 1.7 billion CHF.
• The company completed five strategic bolt-on acquisitions.
• Strong demand observed in critical minerals and electric vehicles sectors.
• SGS aims for 10% organic growth and over 20% margin in business assurance by 2026.

Company Performance

SGS demonstrated resilience in Q3 2025, with sales reaching 1.7 billion CHF, marking a 6% increase on an organic basis. The company’s nine-month sales stood at 5.2 billion CHF, reflecting a 2.3% year-over-year growth. With an impressive gross profit margin of 43.95% and EBITDA of $1.55 billion, the performance was driven by strong demand for services in critical minerals and electric vehicles, as well as strategic acquisitions that expanded its capabilities globally. InvestingPro analysis shows the company maintains a GOOD financial health score of 2.7, suggesting strong operational stability.

Financial Highlights

• Revenue: 1.7 billion CHF in Q3, up 6% organically.
• Nine-month sales: 5.2 billion CHF, a 2.3% increase.
• Organic growth: 5.5%, complemented by 1.6% from acquisitions.

Outlook & Guidance

Trading at a P/E ratio of 27.66 and showing a revenue growth of 3.12%, SGS remains optimistic about its future, projecting full-year organic growth consistent with its nine-month performance. The company anticipates improving its adjusted operating income margin by at least 30 basis points and expects strong free cash flow for the full year. By 2026, SGS targets a 10% organic growth and over 20% margin in its business assurance sector. InvestingPro’s Fair Value analysis suggests the stock is currently slightly overvalued, though its strong fundamentals and growth prospects merit attention. Discover more insights and 12+ additional ProTips with an InvestingPro subscription.

Executive Commentary

Géraldine Picaud, CEO of SGS, emphasized the company’s strengths in digital trust, stating, "Our unique competencies in digital trust are one of the most valuable assets of the group." She expressed confidence in the company’s ability to maintain its growth trajectory, adding, "We expect this trend to continue in the fourth quarter."

Risks and Challenges

• Currency Fluctuations: The strong Swiss franc posed a -4.8% translation effect on sales.
• Consulting Business: Faced a 30% decline in Q3, requiring strategic adjustments.
• Low-Margin Contracts: The company is actively pruning these to enhance profitability.

SGS’s strategic focus on digital services, sustainability, and strategic acquisitions positions it well for future growth, despite some challenges in specific business segments.

Full transcript - SGS SA CFD (SGSN) Q3 2025:

Ariel Bauer, Communications and Investor Relations, SGS: Morning and welcome to the SGS Q3 2025 sales update. My name is Ariel Bauer and I’m in charge of Communications and Investor Relations. I’m here with Géraldine Picaud, our CEO, and Marta Vlatchkova, our CFO. Please note that this call is being recorded and will be available for replay on the SGS website. Throughout today’s presentation, all participants will be in listen-only mode, and the presentation will be followed by a Q&A session. You can register for questions at any time by pressing star one on your keypad. I would now like to turn the conference over to Géraldine Picaud, CEO of SGS.

Géraldine Picaud, CEO, SGS: Thank you, Ariel, and good morning, ladies and gentlemen. Welcome to our Q3 sales update. Today, I will take you through the highlights of the quarter, and then I will hand over to Marta for more detailed information about the sales. Our Q3 sales reached CHF 1.7 billion, an increase of 6% compared to Q3 2024 on an organic basis. Again, this quarter, this strong achievement that you see is largely based on the first two value drivers we have identified in our strategy: sustainability and digital trust. Bolt-on acquisitions have also made a significant contribution to growth. Bolt-on acquisitions, actually, there we have maintained a very strong momentum, completing five more deals in Q3 since we last met in July for half-year results. In July, we announced the acquisition of ATS, Applied Technical Services, with closing expected around the end of the year.

The process is going according to plan. With ATS, we will significantly increase our presence in North America, adding complementary expertise and cross-selling opportunities. Finally, as we approach the end of this tumultuous year, which has been marked by strong Forex fluctuations, I am very happy to confirm our initial outlook for the full year. One of the things I’m most proud of is how far advanced we are in terms of digital trust services. For several years, we have been able to provide an extended range of digital trust services. For example, our cybersecurity offering delivered through BrightSight is market leading. More recently, we have been recognized by the European Union for our expertise in artificial intelligence with Certix. I believe that our unique competencies in digital trust are one of the most valuable assets of the group.

They enable SGS to accompany its customers in one of the major societal transitions of the modern world. This is the reason why it has been one of the key items of our Strategy 27 from the very beginning. At this point, we felt it was important to organize our offering around four pillars to provide full visibility to our clients: connected products and technologies, digital services and infrastructures, data and artificial intelligence, organization, and people. Practically, we certify compliance with various standards and acts of connected devices, infrastructures, virtual platforms, and AI systems. Under the pillar organization and people, we certify whether an organization has the right governance and controls in place under the applicable frameworks, which includes training, incident response, and supplier management. Let’s now turn to sustainability, which has continued to be a strong driver of growth over the quarter.

The four pillars, as you remember, of our offering impact now have recorded strong growth. Demand remains strong, supported by regulatory pressure, especially in Europe, and by strong consumer expectations. We also made good progress with the signing of various contracts, which will drive the growth of tomorrow. As an example, we have signed a partnership with EcoVadis, one of the main sustainability ratings platforms. Let’s go to our M&A activity. You can see that during the quarter, we continued our active acquisition policy. Five new companies have joined the group. MPR Services in the U.S. is a provider of liquid and gas reclamation services with solutions to treat contaminants. Fulcrum Robotics is specialized in aerial, marine, and terrestrial drone-based inspection and robotic services. It is based in Australia, working across industrial and environmental sectors. We have taken an additional and controlling stake in Geosol, our GAV in Brazil.

It provides us with geochemical, environmental, and analytical laboratory services, notably in mineral engineering. Tress Sixty is a Chilean technology integrator for mining operations. Finally, Qualitest in Canada provides services in welding engineering, mechanical testing, failure analysis, and inspection services. Let me now share some key highlights from our business lines, and let’s start with industries and environment. Industries and environment, as you can see, delivered excellent organic growth in Q3. We are proud of what the teams have achieved here across all the network. The energy and momentum are tangible, and we remain fully focused on execution and delivering on all our promises. In safety, we continue to see high single-digit growth, fueled by strong demand in North America and Europe on the back of regulatory pressures and customer focus on compliance.

On projects in an advisory business, we delivered also robust growth driven by new project wins in Latin America and Asia Pacific. Industrial testing also posted excellent results with solid execution and reliable performance across all regions. In environment, growth was moderate, partly offset by a tough comparable base and some temporary headwinds, notably in the U.S. However, after a softer summer period, the latter part of Q3 showed a marked increase in laboratory testing. Let’s turn to natural resources, which delivered solid organic growth of 4.4% in the third quarter. In minerals, we continued to benefit from strong demand for critical minerals and metals, particularly in the Americas and in Asia Pacific. This demand has been fueled by the needs and the regulation concerning electric vehicles and batteries.

Oil, gas, and chemicals achieved strong growth, reflecting the impact of intensified sales and marketing efforts across Asia Pacific and North America. In agriculture, we recorded good growth driven by double-digit expansions in the Americas and a rebound in Europe following last year’s weaker crop season. Connectivity and products delivered a strong organic growth of 6.2% in the third quarter, led by sustainability and digital trust. Connectivity achieved high single-digit organic growth driven by increased demand for technology security in Asia Pacific and product safety in North America. Our recently acquired businesses in North America also continued to perform very well, including SGS ArcLight, which delivered strong double-digit growth, expanding its market share with major U.S. mobile carriers. This complements our presence in Asia, where we test mobile devices for manufacturers, creating valuable synergies across the connectivity ecosystem, from product design to carrier compliance.

Soft lines delivered solid organic growth, supported by strong demand for eco-friendly and sustainable products. Our SGS Blue Sign business, which recently celebrated 25 years as a global leader in sustainable textile innovation, continues to play a key role in helping brands advance their responsible sourcing and circularity goals. Hard lines delivered high single-digit organic growth, benefiting from supply chain shifting opportunities across Southeast Asia, as manufacturers gradually start to diversify production to strengthen resilience to geopolitical risks. Mid-single-digit growth in government services reflected strong demand for product conformity assessment and anti-fraud services, as governments seek always to strengthen consumer protection and trade compliance. Health and nutrition delivered a strong organic growth of 6.2% in the third quarter, driven primarily by food, which continued to perform very well across all regions. Food testing maintained double-digit organic growth, supported by strong demand from emerging contaminant testing and food safety services globally.

We also recorded strong double-digit growth in nutraceutical and dietary supplement product certification, notably supported by record sales at SGS NutriSource, which continues to expand its leadership in clinical research, regulatory consulting, and product certification for the health and the food industries. Increasing consumer awareness on product integrity is accelerating demand for independent third-party verification. Pharma delivered moderate organic growth, driven by clinical research in Europe, partly offset by a softer performance in drug development. In cosmetics and personal care, several new project wins were secured toward the end of the quarter, with activity expected to continue building into Q4. Finally, business assurance. Resilient organic growth was driven by strong demand for services that help our clients mitigate risk, build operational resilience, and ensure compliance, particularly in areas related to sustainability. Certification reported strong organic growth with double-digit increases in medical devices, food, and digital trust assurance.

In these critical sectors, where we hold leading positions, we help clients manage operational, regulatory, and reputational risk, maintain compliance, and protect the integrity of their supply chains and digital infrastructure. Sustainability continued to deliver double-digit growth, driven by strong demand for greenhouse gas emissions verification, sustainability assurance, and social audits, as clients increasingly act proactively to meet stakeholder expectations and protect their brands. By contrast, consulting activity remained soft, primarily due to the delay of several large projects in North America. Our recent acquisitions in North America and Europe continue to make a strong contribution to growth, further enhancing our global capabilities in sustainability and digital trust, and positioning the division very well for future growth. I now hand over to you, Marta.

Marta Vlatchkova, CFO, SGS: Thank you, Géraldine, and a very good morning to everyone. Let’s now look at our third-quarter sales drivers in more detail. First, we are very pleased with the acceleration of organic growth to 6%, resulting in CHF 102 million of incremental sales. Second, the sustained bolt-on acquisition momentum further expanded the sales by 1.9%, bringing the Q3 growth in constant currencies to 7.9%. On the Forex side, our reporting currency, the Swiss franc, remained strong, resulting in a negative translation impact of minus 6.1%, leading to 1.8% growth in Swiss francs. Let’s now move on to the next slide and see how our growth in Swiss francs compares to the euro and the U.S. dollar. At the beginning of April, with Trump’s Liberation Day announcement on tariffs, the Swiss franc appreciated sharply against all currencies and remained at those levels through Q3.

This led, as just presented, to minus 6.1% translation impact in Swiss francs in Q3, to compare to minus 4.3% should we translate sales to euros and to plus 2.4% when translating to the U.S. dollar. As a result, the third quarter reported growth in Swiss francs of plus 1.8% is equivalent to a growth of plus 3.6% in euros and plus 10.3% in U.S. dollars. Let’s now continue with the sales breakdown by region. As you can see, the organic growth was supported by all regions. In testing and inspection, Asia Pacific expanded by 7.6% organically in Q3, with continued high single-digit growth in connectivity and products and double-digit growth in food. In addition, growth in industries and environment and natural resources accelerated, notably with a strong performance in Australia.

In Europe, organic growth improved to 4.5%, benefiting from new contract wins in industries and environment, while trading volumes in natural resources improved. North America expanded by 3.9% organically, on top of a high prior year baseline. We saw excellent performance in safety, connectivity, food, and agri, partially offset by a softer summer period in environment, while pharma remained stable. Eastern Europe, Middle East, and Africa delivered 3.8% organic growth, impacted by a slowdown in Africa, with several countries going through political uncertainty. Latin America grew by 14.1% organically, an acceleration supported by new project wins in Chile and Brazil. Finally, as commented earlier by Géraldine, business assurance delivered 3.7% organic growth, driven by strong momentum in sustainability, offset by underperformance in consulting. Let’s now review how the sales of the first nine months compare to prior year. Our nine-month sales reached CHF 5.2 billion, up by 2.3%.

The strong organic growth of 5.5% was complemented by 1.6% additional growth from bolt-ons, leading to a high constant currency growth of 7.1%. The strength of the Swiss franc against all major currencies led to minus 4.8% translation effect, resulting in a 2.3% growth in reported terms. With that, I hand it back to you, Géraldine.

Géraldine Picaud, CEO, SGS: Thank you, Marta. To conclude this presentation, let me reconfirm our outlook for the full year 2025. In terms of growth, our nine-month sales are fully aligned with our full-year guidance. We expect this trend to continue in the fourth quarter. I’m happy to confirm on the profitability side that we will improve our adjusted operating income margin by at least 30 basis points, thanks partly to our corporate savings plans. I remind you that this guidance is in reported terms, so in Swiss francs, and therefore includes the full effect of the foreign exchange on our margins. Finally, I confirm here again that the free cash flow will be strong for the full year, even excluding the non-recurring impact of the sale of the headquarter building in Geneva. Thank you for your attention, and we can now take your questions.

Conference Operator: Thank you. We will now begin the question and answer session. You can register for questions at any time by clicking the Q&A button in the webcast and then pressing star one on the virtual keypad. If you are joined by phone, just press star one. Please limit yourself to a maximum of one question and one follow-up question. One moment, please, for the first question. The first question comes from Daniel Bürki from ZKB. Please go ahead.

Good morning everyone. I would have a question regarding a mix of volume and price and also wage inflation. How does it look at the moment, which was a big topic during the inflation period? How does it look now?

Géraldine Picaud, CEO, SGS: Okay, Daniel, good morning to you. Marta is going to take your question.

Good morning.

Yes.

Thank you.

Yeah, hi Daniel. Out of the 6% organic growth for Q3, pricing contributed slightly below 3%, and it was stable compared to H1. The acceleration of organic growth in Q3 compared to H1 really came from pickup of volumes, in particular in Europe, Asia Pacific, and Latin America.

Wage inflation?

On the wage inflation, we don’t see, we see it for the moment as something quite fairly stable. We don’t see a major wage inflation. Nonetheless, we’re going to continue to master operating leverage. Daniel, you know that what is important and what Marta is telling us here is that we’ve increased business. What she called the volumes is that we have an increase in business in terms of the number of projects, of samples, for testing, of inspections, visits, and so on. We do have an increase in activity on top of the pricing. The wage inflation, as you say, is controlled, I would say stable. Again, you know, the focus and our focus, as I just explained, is on productivity and utilization.

Excellent. Thank you very much.

Thank you, Dominik.

Conference Operator: Next question comes from Arthur David Truslove from Citi. Please go ahead.

Morning everyone. Thank you very much for taking my question. The first question I had was just around the comparators. My sense is they’re easier in the fourth quarter than the third quarter. I guess my sort of main question is why you shouldn’t see an acceleration of organic growth in the fourth quarter relative to the third. I guess kind of linked to that, you’ve obviously been pruning contracts in industries and environment. Can you just remind us what the organic growth headwind associated with that in Q3 was and again how that impacts Q4? Thank you very much.

Géraldine Picaud, CEO, SGS: Okay, look, when it comes to Q4 and growth, we see that our nine-month sales are fully aligned with our full-year guidance. In particular, our year-to-date organic growth at 5.5%. To be perfectly honest, you know, we want to keep to be on the prudent side. You know, the economic situation remains uncertain. That can create potential delays in the short term. Therefore, we want and we see that the full year aligned more or less close to the nine months in terms of organic growth. Let’s stay like that. We still have also, you know, a bit of impact from the contracts we are exiting. Look, we are sticking to our guidance, as I said during the outlook. On the industries and environment, you had the questions.

Marta Vlatchkova, CFO, SGS: Yeah, industries and environment, indeed, we saw acceleration of growth in Q3 to reach 7.9% organically. As a reminder, this was around 5.3% in H1. Really driven by improvements in Asia Pacific, Latin America, and Europe. We saw new contract wins. We have slightly lower impact from low margin contracts, which we have been exiting since Q3 2024.

Géraldine Picaud, CEO, SGS: We have a question.

Marta Vlatchkova, CFO, SGS: Strong growth suffers from environment. You know, it’s picking up in September. Yeah, we are quite positive for the rest of the year on environmental.

Thank you. Are you giving a number for the headwind associated with contract pruning in Q3? I think in the first half, you talked about 50 basis points at gross level. I just want.

Géraldine Picaud, CEO, SGS: Yes, Arthur, you want to have an estimate for the full year. Marta, do you want to give that estimate?

Marta Vlatchkova, CFO, SGS: Yeah, we were guiding on 0.5% in H1. This is slightly softening for the full year. Look at around 40 basis points, meaning H2 of around 0.3%.

Thank you very much indeed.

Géraldine Picaud, CEO, SGS: Thank you, Arthur. Next question, please.

Conference Operator: The next question comes from Rory Edward McKenzie from UBS. Please go ahead.

Morning both. Rory here. I wanted to ask about in connectivity and products. Can you talk more about the opportunities coming from the supply chain shifts in hard lines? Is that revenue from, you know, early vendor inspection services, or is it genuine new testing volumes coming from, you know, production sites from clients? In general, can you talk about the behavior across the division? Are clients still in a wait-and-see mode around tariffs? Is that at all weighing on volumes in any segments, do you think? Thank you.

Géraldine Picaud, CEO, SGS: Yeah, thank you, Rory. In connectivity and products, we see a strong drive in organic growth coming from all connected devices and connectivity. Really, this is where we see the greatest opportunity, as I explained. Yes, in hardline, any supply chain shift is an opportunity for us. It gives also, we see new suppliers. That gives us more testing. We are matching exports with markets, and that gives also, again, more opportunities for us in terms of testing and inspection. Yes, this is quite positive, and we see this positive momentum continuing. Across all business lines, we’re quite fairly positive. I mean, we see a good momentum here in the activity. There are always ups and downs in natural resources by definition. All the other business lines, we have a turnaround to execute in business assurance consulting business. That’s been said. The rest is really doing very, very fine.

That’s great. Thank you.

Thank you. Next question, please.

Conference Operator: The next question comes from Zach Alquarioti from Morgan Stanley. Please go ahead.

Good morning, Géraldine. Good morning, Marta. Maybe could you just please comment on where you expect the year-end leverage to land? Given it could be a little elevated, how does that impact your capacity for further bolt-on deals in the short term? Just kind of the follow-up, are there any levers you would consider to control that leverage, maybe disposals or another scrip dividend? Thank you.

Géraldine Picaud, CEO, SGS: Yes, thank you for your question. Look, I will let Marta answer on the year-end leverage precisely. It depends, obviously, if we close or not Applied Technical Services before year-end or after year-end. No, that will not impair our ability to continue to do bolt-on acquisitions. We will continue to consolidate in the right markets with the right momentum according to the Strategy 27. Strategy 27 also had the third pillar, which is solid financial profile. We will take care of that. We took care of it with the script dividend and will continue with the support of the board. We will talk about that in due course. Marta, do you want to comment more precisely?

Marta Vlatchkova, CFO, SGS: Yeah, on the net leverage, you remember we exited 2024 with 1.8 times leverage on adjusted EBITDA. By the end of 2025, we expect this to slightly improve thanks to the improvement in margins.

Géraldine Picaud, CEO, SGS: Thank you. Yeah, and that is without ATS, obviously. Yeah.

Yeah.

Okay, clear. Thank you, Marta. Next question, please.

Conference Operator: The next question comes from Michael Foote from Vontobel. Please go ahead.

Yes, hi, good morning everyone. Two questions. The first one is if you could give any details on how the consulting business performed and what your view is on the situation there, on the situation more generally in the private equity environment and what your intentions are for that business turnaround. The second question is if you could give any information about your exposure to the toys industry and how that affected your business. I think it was an issue at your competitor. That would be helpful. Thank you.

Géraldine Picaud, CEO, SGS: Okay, I’ll start with the first question on our consulting business. We’ve changed management. We’re going to let the new management do the turnaround and work on this. Hopefully, we’ll see benefits as we go through the course of next year. Consulting has really been a big headwind for our business assurance division. That’s clear. It’s been down 30% in Q3, our consulting business. It’s fairly a huge drop. That’s the consulting business called Main Point. We will turn it around and it will be a successful business as we go into the year of 2026. Let the time to the team to do it and we will get it back on feet. Let’s be clear that we have something else in business assurance. We have recorded double-digit growth in strategic segments in BA, including food, sustainability services, digital trust, and this we are going to accelerate further.

I can confirm this division. I have the ambition of 10% organic growth and more than 20% margin. This business is going to deliver these KPIs as we go through 2026 and further. That’s your first question. Your second question about the toys, I don’t comment on competition, but toys grew for us in Q3. We have a good growth in our Q3 for toys. We don’t disclose exactly the growth rate, but it is quite good, so probably gain market share. Good.

Thank you. Thank you very much. Thank you.

Next question, please.

Conference Operator: The next question comes from James Rowland Clark from Barclays. Please go ahead.

Thank you for taking my questions. I have two, please. In your mining vertical, are you able to comment on the level or the sort of scale of the pipeline that you’ve got coming or perhaps conversations with clients about the sort of future business that could come your way, particularly in gold and copper? Maybe just remind us of your exposure there as well. Secondly, industries and environment was much better in the third quarter, as you mentioned. Industrial testing was behind that, and you flagged the geographies that were very strong. Can you talk about the end industries that were particularly strong in the third quarter? Thank you.

Géraldine Picaud, CEO, SGS: Yeah, thank you. Look, in mining, we have, you know, it’s commodities. There’s cycles. There’s up and down. But you know, today we are in several metals. We don’t see any, I would say, headwinds coming from gold or copper, as you’re mentioning it. You know, gold means strong on the technology, and you’re talking about end markets, so everything across the energy transitions, EV, and so on. We see actually a strong pipeline of metallurgical projects, especially in North America for the battery and the critical metals. All our geochemistry is strong organic growth. We had even double-digit growth in Australia. We do see strong projects here, and our metallurgy, as I just said, was growing double digits. Very, very strong here. We are not having the issues you’re mentioning at all. On the opposite, we are really leading many advisory platforms for critical and battery metals.

You mentioned about industries, and that’s across all regions, by the way. You mentioned about the industries and, you know, what’s working well and which end market. Look, we see a lot. For instance, I like to mention that we have a lot of strategic wins, for instance, with the construction of data centers. That is impacting us very positively in Europe. That’s new, and that’s driving the growth. We do have a lot of also growth coming from the food industry. That is also very positive. In industry, particularly, I would say, pharma, but also data centers, as I mentioned, energy. Yeah, fairly positive across all industries.

Great, thank you.

Thank you very much. Next question, please.

Conference Operator: The next question comes from Jeffrey Miller from ODDO. Please go ahead.

Yes, hi. Thank you for taking the question. I have one. In some divisions like E&E, you sometimes mention qualitative performance in some subdivisions, like high single-digit in safety, and sometimes qualitative performance in some other divisions, like strong growth in project advisory. Can you give us the rationale behind that and help us navigate those qualitative comments in terms of numbers? Thank you very much.

Géraldine Picaud, CEO, SGS: When we say strong, it’s usually high single-digit in terms of qualitative translation into numbers. When we say solid, it’s generally mid-single-digit. When it’s resilient, it’s between 3% to 5%. Is that answering your question?

Perfect. Yes, thank you.

Okay, great. Thank you. Next question, please.

Conference Operator: The last question comes from Tom Bolton from BNP Paribas. Please go ahead.

Hi, morning Géraldine, morning Marta. Two questions there for me, please. I just wanted to clarify on the contract exits, the contract pruning we’ve seen year to date. To what extent are we done with those now? To what extent do you see the need for further contract pruning as we go through FY2026? Is that now done? Secondly, and somewhat related to that, I know this is primarily a sales update, but just on margin, and since you mentioned the reports, the guidance is struck on a reported basis.

If we were to see a further strengthening in the Swiss franc relative to sort of operational currencies, and that affects headwind to grow further, to what extent do you have other tools within your toolbox to sort of make up that gap on margins beyond further contract pruning, such that you’d still be comfortable in hitting your margin guidance for the outer years? Thank you.

Géraldine Picaud, CEO, SGS: Thank you. Thank you. Look, on the contracts exit, we are not completely done, but the rhythm of exit is slowing down. The impact will be less and less as we go further into 2026. On the margins, yes, we still think the Swiss francs can appreciate further, and it’s appreciating further. As we promised an improvement of at least 30 basis points on our margins for this year, we need to have a toolbox, as you said, and we do have it. We are progressing on our operating leverage. We are having the full results of the renew plan, which is the 100 million restructuring plan, the corporate savings plans. We’ve got some corporate savings that are coming also. Yes, we will deliver on our promises, even if the Swiss francs strengthen further. Yes. With that, I now hand over to the operator. Thank you everyone for your questions.

Conference Operator: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

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