Burckhardt Compression posts record profit despite weaker orders

By AI, Created 5:46 AM UTC, June 04, 2026, /AGP/ – Burckhardt Compression reported record EBIT and net income for fiscal 2025 even as order intake fell sharply in a disrupted market. The Swiss compressor maker lifted margins, kept sales near record levels and outlined fiscal 2026 guidance for lower sales but continued profitability.

Why it matters: - Burckhardt Compression showed it can protect profit even when new orders slow and customers defer projects. - The results point to resilience in the company’s service and systems businesses despite trade disruptions, currency pressure and geopolitical uncertainty. - The board also kept the dividend unchanged, signaling confidence in cash generation and balance-sheet strength.

What happened: - Burckhardt Compression reported fiscal 2025 sales of CHF 1.06 billion, down 3.5% year on year, and order intake of CHF 784.3 million, down 31.9%. - The company posted record EBIT of CHF 141.0 million and net income of CHF 110.1 million. - EBIT margin rose to 13.3%, up from 12.9% a year earlier. - CEO Fabrice Billard said the company gained market share in core segments and remained confident in long-term energy-security demand. - The board will propose a dividend of CHF 18.00 per share, unchanged from the prior year.

The details: - Net of currency effects, order intake fell 27.2% and sales rose 1.3%. - Gross margin improved to 28.8%, helped mainly by a better product mix in the Systems Division. - R&D spending was CHF 29.8 million, or 2.8% of sales, broadly unchanged from the prior year. - Selling, marketing and general administrative expenses came in at 12.1% of sales, slightly lower in absolute terms. - Other operating income and expenses were a net CHF 5.8 million loss, about flat year on year, mainly due to foreign-exchange effects. - Systems Division EBIT margin increased 1.6 percentage points and reached double-digit profitability for the first time. - Services Division EBIT margin slipped 0.3 percentage points. - Net income benefited from lower financial expenses and a lower tax rate of 20.3%. - Earnings per share rose to CHF 32.60 from CHF 31.20. - RONOA climbed to 40.4% from 32.6%. - Operating cash flow reached CHF 149.4 million. - Equity increased to CHF 361.6 million, and the equity ratio improved to 30.7%. - Net financial position was CHF 110.8 million. - Greenhouse gas emission intensity for Scope 1 and 2 fell 32% versus the prior year.

Between the lines: - The order decline reflects a normalization after five years of book-to-bill ratios above 1, not just a weaker market. - US tariff announcements, Middle East conflict and the stronger Swiss franc pushed customers to delay capital spending. - The Systems Division was hit hardest, especially in petrochemical and chemical markets, where customers deferred projects in China. - Services held up better because of recurring demand, but customers still delayed spare parts and upgrade work. - The company’s expansion into local service capability and biogas compression suggests Burckhardt Compression is leaning harder into after-market and energy-transition demand to offset cyclical swings.

What’s next: - Burckhardt Compression expects fiscal 2026 sales between CHF 900 million and CHF 1.0 billion. - The company expects an EBIT margin of around 12%. - Management expects sales to be stronger in the second half because of project delivery timing. - Mitigating actions are already underway to adjust cost and operations to the lower sales level. - The company expects the Middle East conflict to keep pressuring markets in the first half of fiscal 2026. - Burckhardt Compression said it will communicate a revised timing for its Mid-Range Plan once market visibility improves. - The company still targets CHF 1.2 billion in sales and an EBIT margin of 12% to 15% over the medium term. - The Annual Report 2025 and further information are available on the company website.