Schlatter Industries AG / Key word(s): Half Year Results SCHLATTER INDUSTRIES AG - SIX SWISS EXCHANGE: STRN - ISIN: CH0002277314 S c h l i e r e n, 14 August 2025. In the first half of 2025, the Schlatter Group recorded a slight decline in order intake compared with the same period of the previous year, at CHF 54.1 million (first half of 2024: CHF 57.4 million). At CHF 52.0 million, net sales in the first half of the year were 15.8% below the previous year's figure (CHF 61.8 million). At CHF 63.5 million, the order backlog as of June 30, 2025, was slightly above the level at the end of 2024 (31.12.2024: CHF 61.4 million). Operating profit (EBIT) for the first half of 2025 amounted to CHF 0.3 million (EBIT margin: 0.6%) compared to CHF 1.3 million (EBIT margin: 2.0%) in the same period of the previous year. Lower net sales, geopolitical turmoil, import duties in the US, and the strong Swiss franc led to a decline in operating profit. Due to lower exchange rates, the balance sheet items at the Schlieren site had to be valued lower, which led to high financial expenses and consequently a negative consolidated result. For the first half of the year, the Schlatter Group reports a negative consolidated result of CHF -0.8 million (first half of 2024: CHF 1.6 million). Operating cash flow amounts to CHF 7.4 million (first half of 2024: CHF -0.9 million).
The crisis in the steel industry and the restrained construction activity in Europe have led to low sales in the area of systems for the production of reinforcing mesh, but order intake in emerging markets has increased. Fewer machines for the production of fabrics for paper machine clothing were delivered to China, and Western customers are also holding back on orders. The industrial mesh segment remained stable at a good level overall, with demand for industry solutions being particularly positive. Geopolitical upheavals and import duties in the important US market are causing uncertainty. The strength of the Swiss franc and, in particular, the weakness of the US dollar weighed on the Schlatter Group's results. The order backlog is fully utilizing capacities for the current fiscal year.
Key figures Order intake for systems for the production of reinforcing mesh increased outside Europe and the US, but the largest reinforcing mesh market in Europe remains in recession. Demand for systems for the production of industrial mesh normalized at a good level. Fewer orders were recorded in the rail welding product area. The after-sales business maintained the previous year's level. The delivery delays that occurred in the previous year were resolved. Low sales in the area of systems for the production of reinforcing mesh led to a decline in net sales in the Welding segment. Geopolitical upheavals, import duties in the USA, and the strong Swiss franc had a significant negative impact on the operating result. Outlook for the Welding segment
Weaving segment Key figures The majority of orders for weaving machines for the paper industry came from Chinese customers. Restraint continues to be observed in Western markets, and the market has further consolidated as a result of customer mergers. In the current financial year, US import tariffs are having little impact on the Weaving segment's business performance. From financial year 2026 onwards, however, this may lead to projects being postponed. Outlook for the Weaving segment
Outlook Overall, the Schlatter Group was able to secure sufficient orders in the first half of the year to ensure capacity utilization for the 2025 financial year. The order outlook remains intact, albeit moderate overall. The market environment remains challenging due to US tariffs, geopolitical turmoil, and the strength of the Swiss franc. The Welding segment is directly affected by the high import tariffs on Swiss products in the US. If these are maintained, this could have a significant negative impact on the Schlatter Group's results and on business development in the US. In the second half of the year, the focus will be on increasing efficiency and margins with existing orders. Other priorities include the implementation of innovations and the further expansion of expertise in various areas of the Welding segment. The Schlatter Group is aiming for a profit for the year as a whole, albeit with lower sales compared to the previous year. The complete 2025 half-year report can be accessed on the Schlatter Group website: https://www.schlattergroup.com/en/investor-relations/publikationen/#dokumente-2025
Further Information Schlatter Industries AG Werner Schmidli Chief Executive Officer Mobile +41 79 343 62 62 werner.schmidli@schlattergroup.com
Agenda
Key figures Schlatter Group Schlatter Group (www.schlattergroup.com)
End of Inside Information |
Language: | English |
Company: | Schlatter Industries AG |
Brandstrasse 24 | |
8952 Schlieren | |
Switzerland | |
Phone: | +41 44 732 71 11 |
E-mail: | info@schlattergroup.com |
Internet: | www.schlattergroup.com |
ISIN: | CH0002277314 |
Listed: | SIX Swiss Exchange |
EQS News ID: | 2183750 |
End of Announcement | EQS News Service |
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2183750 14-Aug-2025 CET/CEST
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