Burckhardt Compression continues to demonstrate operational strength in a challenging market environment

Ad hoc announcement pursuant to Art. 53 LR of November 4, 2025

November 4th, 2025 - 06:00 CET

• Successful backlog delivery and sustained value creation
  • Order intake at CHF 400.7 mn, down 34.9% year-on-year amid market uncertainties and currency translation effects
  • Sales of CHF 516.2 mn, up 2.8%* year-on-year (+7.4%* net of currency translation effects)
  • EBIT margin of 12.7%; second half expected to be stronger
  • Profitability increases in both divisions
  • RONOA of 36.2%, up 3.8pp*versus previous year
• Fiscal year 2025 guidance confirmed, supported by strong backlog
  • Sales and EBIT margin at a similar level to fiscal year 2024
• Mitigation measures ongoing to adapt to current market environment
• Further progress on strategic objectives with acquisition of ACT to enhance local service capabilities in the USA

Burckhardt Compression continues to demonstrate operational strength and effective delivery of its large order backlog in a less favorable macroeconomic environment marked by uncertainty and currency fluctuations. In the first half of fiscal year 2025, the company delivered revenue growth and improved profitability in both divisions. Mitigation measures are in place to adapt to current market conditions and the company remains on track to achieve its fiscal year 2025 guidance and Mid-Range Plan ambitions for fiscal year 2027.

Fabrice Billard, CEO of Burckhardt Compression commented: "In a challenging environment, our teams have excelled at achieving multiple objectives: supporting customers to optimize their operations, successfully delivering ongoing projects despite the new tariffs, and adapting cost structures to evolving market conditions. This remarkable dedication from our employees continues to underpin the Group’s resilience."

Order intake decrease, successful backlog delivery and increased value creation

The start of the company's fiscal year in April 2025 coincided with the announcement of US tariffs and the strengthening of the Swiss Franc. In this challenging environment, Burckhardt Compression achieved an order intake of CHF 400.7 mn which is 34.9% below the exceptional prior year period (-31.3% net of currency translation effects). Sales rose by 2.8%* to CHF 516.2 mn (+7.4%* net of currency translation effects), driven by a 12.3%* revenue growth in the Systems Division. Revenue in the Services Division came in 16.4% below the prior year period (-11.6% net of currency translation effects) after a slow start to the fiscal year due to global tariff uncertainties. Both divisions delivered higher gross margins, resulting in a consolidated gross margin of 28.3%, slightly below the prior year period due to the higher share of Systems business in the sales mix. Gross profit increased by 2.0%* to CHF 146.2 mn. Research and Development expenses rose by CHF 1.3 mn to CHF 15.2 mn, representing 2.9% of sales (previous year period: 2.8%*). This increase underscores the company’s continued commitment to innovation, particularly in the Marine and Hydrogen Mobility and Energy segments, as well as in Digital Products and Services. Selling, marketing and general administrative expenses closed at 12.3% of sales (previous year period: 12.6%*), underscoring a further leverage of the company's cost base. Operating income (EBIT) closed at CHF 65.5 mn, 2.3%* below the prior year period. The resulting operating margin was 12.7%, which is 0.7pp* below the previous year at Group level mainly due to the increased share of Systems in the sales mix. Both the Systems and Services divisions delivered higher operating margins of 10.2% and 23.9%, respectively. Marginally lower financial expenses and a lower tax rate of 23.3% resulted in a net income of CHF 48.7 mn (-0.9%* y-o-y). The Group continues to optimize its asset utilization and increase value creation, as evidenced by a strong Return on Net Operating Assets (RONOA) of 36.2% (previous year period: 32.4%*), significantly exceeding the mid-range guidance of >25%.

Systems markets affected by global geopolitics and US tariffs

In the first half of fiscal year 2025, the global Systems market was characterized by uncertainty and deferrals of new project decisions. The announcement of US tariffs on April 2, 2025, prompted a cautious approach to large investment projects, as companies awaited further clarity and carefully evaluated the potential impact of new trade dynamics. The effects of these developments varied across market segments, with the Petrochemical and Chemical segment experiencing the greatest effect due to uncertainty regarding the flow of feedstock and petrochemical products between the US and China. As a result, decisions on new Low-Density Polyethylene (LDPE) and Ethylene-Vinyl-Acetate (EVA) facilities in China were strategically deferred. While the Gas Transportation & Storage segment was also affected, LNG continued to grow at a good pace. Orders for compressors for LPGM ships also remained at a good level, but clearly below the record prior year. After recalibrating last year, the Hydrogen Mobility and Energy segment recovered from a low Q1, with Q2 showing a pickup in smaller projects and pipeline activity driven by national strategies for industrial decarbonization. The Refinery segment also saw positive momentum, fueled by global population growth and rising demand for sustainable aviation fuels (SAF). Overall, the Systems Division achieved an order intake of CHF 245.5 mn, representing a 45.8% decrease (-42.9% net of currency translation effects). There has been a notable uptick in customer activity since the summer break, with several deferred projects resuming. If this momentum continues and the global environment remains stable, the company expects a clearly stronger order intake in the second half-year.

Service market also affected by global uncertainties; Slight growth in local currencies

After a slow start due to global uncertainty from US tariffs, the global service market rebounded in Q2, as customers resumed the procurement of spare parts and much needed maintenance. Regional disparities continued to mirror local economic conditions. Europe remained subdued due to high energy prices and tariff-related uncertainty in the Petrochemical and Chemical segment. The Middle East, Central Asia, and Eastern Europe were affected by the temporary deferment of projects. On the other hand, the Americas developed positively, driven by rising energy needs for data centers and LNG exports to Europe. The Asia-Pacific region also continued at a good level in local currencies. Overall, order intake for the Services Division was 4.4% lower at CHF 155.2 mn. Adjusted for currency translation effects, order intake was up 0.9%. The company’s strategy to support customers with their digitalization and sustainability journeys continued to generate additional orders, and the Services Division continued to grow its activities in the Marine segment thanks to the growing installed base. Looking ahead, provided no new global or regional crises arise, the market is expected to continue to stabilize in the second half-year. Furthermore, the acquisition of ACT on September 12, 2025, bolsters the Group’s US-based spare parts manufacturing capabilities and is expected to positively contribute to the division's full year results.

Mitigation measures in place to increase competitiveness and resilience

Burckhardt Compression's resilient set-up provides a degree of protection against the effects of exchange rates and US tariffs. Costs linked to US tariffs are being passed on to customers. Additionally, the recent ACT acquisition bolsters the company's US spare parts manufacturing capabilities and will help offset US tariffs. Nonetheless, current market conditions demand continued flexibility. Mitigation actions to strengthen the Group's resilience are underway with the acceleration of Mid-Range Plan initiatives that contribute to cost improvements and product competitiveness. In addition, targeted and workload-oriented cost reductions in specific countries and functions are being implemented where appropriate.

Outlook confirmed for fiscal year 2025

With the strong order intake of the past few years, the company’s backlog continues to provide visibility and confidence in delivering on the fiscal year 2025 guidance. Provided no new global or regional crises arise and the market continues to stabilize, the Group confirms its guidance for the fiscal year 2025:

• Sales at around CHF 1.1 bn at the Group level
• EBIT margin similar to fiscal year 2024
• Stronger profitability in the second half due to the product and service mix

Amid the ever-changing global geopolitical backdrop, the Group will continue to actively monitor the situation and any potential impact it may have on its business.

Global megatrends continue to underpin Mid-Range Plan ambitions

Beyond short-term uncertainties, Burckhardt Compression's strategy is supported by global megatrends. A growing global population, especially the middle class, creates increased demand for essential products like fertilizers and polymers and for investment in energy infrastructure. Ensuring a stable and secure energy supply in a rapidly evolving geopolitical landscape with growing intermittent energy sources requires significant investments in energy storage, gas pipelines, and transportation infrastructure, e.g. for LNG or LPG. In addition, the energy transition increases the share of natural gas in the energy mix and requires significant investments in renewable energy infrastructure, which includes solar panels and low-carbon fuels. All these applications require compressors. With its ability to develop innovative solutions in partnership with customers, Burckhardt Compression stands at the forefront of these developments.

* Starting in fiscal year 2024, the accounting policy for the recognition of revenue for projects above CHF 7 mn and lasting more than 1 year has been changed from "Completed Contract Method" to "Percentage of Completion" (PoC) to better reflect the value creation process and to increase stability in revenue recognition. To enable comparison with the half year period under review, prior year numbers are restated for PoC accounting.

The Half-Year Report 2025 is available on www.burckhardtcompression.com/financial-reports.