Schlatter achieves a slightly positive operating result and a negative consolidated result in the first half of 2025. A profit is targeted for the year as a whole.

SCHLATTER INDUSTRIES AG - SIX SWISS EXCHANGE: STRN - ISIN: CH0002277314
Ad hoc announcement pursuant to article 53 LR   

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.

Welding segment

Key figures
Order intake: CHF 45.3 million (H1 2024: CHF 49.4 million)
Net sales: CHF 44.2 million (H1 2024: CHF 48.9 million)
Order backlog: CHF 51.5 million (31.12.2024: CHF 50.4 million)

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
In fiscal year 2025, existing capacities will be well utilized and the order outlook remains intact, albeit moderate overall. Compared to its competitors, the Schlatter Group has a high cost base at its Schlieren site and substantial exposure to the Swiss franc, which puts it at a price disadvantage compared to its competitors. Further measures to increase profitability are being implemented. The Welding segment is directly affected by the high import duties on Swiss products in the US. If these are maintained, this could have a significant negative impact on the Welding segment's results and on business development in the US.

Weaving segment

Key figures
Order intake: CHF 8.8 million (H1 2024: CHF 7.9 million)
Net sales: CHF 7.8 million (H1 2024: CHF 13.0 million)
Order backlog: CHF 12.0 million (31.12.2024: CHF 11.0 million)

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
The Münster site is well utilized for the second half of 2025. Despite lower sales, Schlatter expects a positive result. There are a moderate number of interesting projects in China that could lead to follow-up orders for the 2026 fiscal year. Upgrades, modernizations, and relocations of weaving machines are providing additional volume.

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)
The Schlatter Group is one of the leading specialists in plant engineering for resistance welding systems as well as weaving and finishing equipment for the production of paper machine clothing, wire fabrics and wire mesh. Thanks to its many years of experience in the field of plant technology, its innovative strength and its reliable service, the Schlatter Group – which is listed on the Sparks Standard of SIX Swiss Exchange – guarantees its customers a range of powerful and high-quality production equipment.

This media information contains certain forward-looking statements, e.g. statements using the words "believes," "assumes," "anticipates," or formulations of a similar nature. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which could lead to substantial differences between the actual future results, the financial situation, the development or performance of the Company and those either expressed or implied by such statements. Such factors include, among other things: competition from other companies, the effects and risks of new technologies, the Company's continuing capital requirements, financing costs, delays in the integration of acquisitions, changes in the operating expenses, the Company's ability to recruit and retain qualified employees, unfavorable changes in the applicable tax laws, and other factors identified in this communication. In view of these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company accepts no obligation to continue to report or update such forward-looking statements or adjust them to future events or developments. 

This information can be downloaded as a PDF from the following link:
Ad hoc announcement pursuant to article 53 LR

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