Bucher Industries AG Recovery in demand hampered by political uncertainties

Bucher Industries recorded subdued market development in the first half of 2026. Political uncertainties affected the investment climate, particularly in agriculture-related business, while order intake in the other four divisions developed positively. The strong market position could be successfully maintained in a competitive environment. Order intake and sales were slightly below the level of the prior-year period. The overall lower capacity utilisation and restructuring costs at Bucher Specials weighed on the operating profit margin and the Group’s profit for the year. Bucher Industries is consistently pursuing its cost-saving measures. Due to the subdued market development, the Group is adjusting its outlook for 2026.

Demand for Bucher Industries’ products and services varied considerably in the first half of the year. A broader recovery was hampered by the uncertain political situation, particularly in the agricultural sector. The Group’s order intake was slightly below the level of the prior-year period, mainly due to the decline at Kuhn Group after a previously strong pre-order season at the end of last year. The order intake in the divisions Bucher Municipal, Bucher Hydraulics, Bucher Emhart Glass as well as Bucher Specials developed positively. Group sales declined slightly. Due to the lower order books at the beginning of the year, the decline in sales at Bucher Municipal and Bucher Emhart Glass was in line with expectations. The other divisions remained at the prior-year levels. The overall lower capacity utilisation weighed on the Group’s profitability. Together with the costs of a restructuring at Bucher Specials and the absence of the profit from the sale of a property from the prior-year period, this resulted in a lower operating profit margin and a lower profit for the period for Bucher Industries. The number of employees remained stable compared to the prior-year period. The reduction in the number of regular employees at locations with low capacity utilisation was offset by the targeted hiring of temporary employees, primarily at Kuhn Group in Europe, to process the pre-orders. Overall, the cost-saving measures initiated were consistently continued or expanded.

Group

	January – June		Change			Fullyear
CHF million	2026	2025	%	%1)	%2)	2025
Order intake	1’241	1’290	-3.8	-0.9	-1.1	2’883
Net sales	1’471	1’537	-4.3	-1.2	-1.5	2’914
Order book	867	914	-5.1	-2.4	-2.5	1’120
Operating profit (EBIT)	105	178	-41.0			281
% of net sales	7.1%	11.6%				9.7%
Profit for the period	88	143	-38.5			235
% of net sales	6.0%	9.3%				8.1%
Earnings per share in CHF	8.90	13.98	-36.3			23.22
Operating free cash flow	-74	96	-176.7			365
Net cash/debt	278	327	-15.2			498
Equity ratio	66.1%	67.0%				66.1%
Return on net operating assets (RONOA) after tax	12.7%	18.7%				16.2%
Average number of FTEs	14’003	13’760	1.8		1.4	13’696

¹⁾ Adjusted for currency effects
²⁾ Adjusted for currency and acquisition effects

Financial position remains very solidThe return on net operating assets (RONOA) after tax amounted to 12.7%, which is still above the cost of capital of around 8%. The decline compared with the prior-year period was due to the lower profitability and was only partially offset by the lower level of average net operating assets. Free cash flow for the reporting period was affected by the seasonal increase in net working capital, the dividend payment and the share buyback programme completed in March 2026. The 410’000 registered shares repurchased under this programme were cancelled in June 2026 following approval by the annual general meeting. With net cash of CHF 278 million and an equity ratio of 66% at the end of June 2026, the financial position remains very solid. Bucher Industries therefore still has the financial flexibility to consistently continue investing in future growth and spending on research and development.

Business performance in the divisions

Kuhn Group

	January – June		Change			Fullyear
CHF million	2026	2025		%	%1)	2025
Order intake	329	416		-20.9	-18.2	1’124
Net sales	612	618		-0.9	2.6	1’053
Order book	229	255		-10.5	-7.6	524
Operating profit (EBIT)	54	61		-11.9		75
% of net sales	8.8%	9.9%				7.1%
Average number of FTEs	5’583	5’321		4.9		5’300

¹⁾ Adjusted for currency effects

Resilient dairy and livestock segmentAfter a strong pre-order season among agricultural machinery dealers in the second half of 2025, demand at Kuhn Group remained subdued in the first half of 2026. Sales prices in arable farming remained at a low level, while higher operating costs additionally weighed on farmers’ incomes, mainly due to the sharp rise in fertiliser and diesel prices. In addition, there were concerns about the availability of fertiliser, unfavourable weather conditions and ongoing political uncertainty, which further hampered the willingness to invest. In Brazil, this was compounded by high interest rates. The dairy and livestock segment proved to be more resilient despite the falling milk price. The spare parts business remained stable. Overall, the division’s order intake was 21% below the level of the prior-year period. Thanks to the higher order book at the beginning of the year, sales increased by 3% on a comparable basis, supported by Europe. The operating profit margin of 8.8% was below the level of the prior-year period, primarily due to severe under-utilisation of capacity in Brazil and higher personnel and material costs. At the production sites that focus on arable farming, the division continues to work systematically on adapting cost structures to the market environment. In the first half of the year, Kuhn Group developed further innovative machine models, such as the “Gladiator” strip-tillage system, which enables precise nutrient placement and non-stop seedbed conditioning in a single pass. Additional innovations include the “Karan” range of trailed sprayers, designed specifically to meet the needs of medium-sized and large farming operations as well as contractors.

Outlook for 2026Kuhn Group expects stable sales on a comparable basis. The operating profit margin should remain at the prior-year level.

Bucher Municipal

	January – June		Change			Fullyear
CHF million	2026	2025		%	%1)	2025
Order intake	283	269		5.2	7.6	556
Net sales	272	289		-6.0	-3.6	605
Order book	246	272		-9.3	-7.3	239
Operating profit (EBIT)	20	26		-24.8		57
% of net sales	7.2%	9.1%				9.4%
Average number of FTEs	2’621	2’541		3.1		2’569

¹⁾ Adjusted for currency effects

Continued favourable market conditions and higher order intakeThe market situation remained stable at Bucher Municipal. Demand remained robust due to the ongoing need for maintenance and cleaning of public infrastructure. Overall, order intake was 5% higher than in the prior-year period, driven by the compact sweeper, winter maintenance equipment and refuse collection vehicle segments, which saw significant growth in the first half of the year. Sales reflected the lower order book at the beginning of the year and were 6% below the level of the prior-year period. The decline was primarily attributable to the UK, Australia and American markets, while continental Europe performed positively thanks to good sales of compact sweepers. The overall lower capacity utilisation and tariff costs weighed on the operating profit margin, which declined to 7.2%. At the same time, Bucher Municipal continued to invest in the expansion and renewal of its product portfolio, including innovations such as autonomous vehicles and driver assistance systems, as well as in the global harmonisation of the ERP landscape.

Outlook for 2026Bucher Municipal expects a slight decline in sales on a comparable basis and a slightly lower operating profit margin than in 2025.

Bucher Hydraulics

	January – June		Change			Fullyear
CHF million	2026	2025	%	%1)	%2)	2025
Order intake	337	321	4.8	9.3	8.8	631
Net sales	331	319	3.8	7.9	7.5	626
Order book	155	152	2.2	6.9	6.9	154
Operating profit (EBIT)	36	31	15.9			63
% of net sales	10.8%	9.7%				10.1%
Average number of FTEs	2’966	2’897	2.4		1.9	2’906

¹⁾ Adjusted for currency effects
²⁾ Adjusted for currency and acquisition effects

Recovery continues and results improvedAlthough increasing political uncertainty was noticeable, demand in the hydraulics markets continued to develop positively in the first half of the year. Order intake at Bucher Hydraulics was 5% higher than in the prior-year period. Demand for hydraulic solutions for construction machinery and mobile electric drive technology in particular continued to increase. Order intake in the materials handling segment also increased in the first half of the year thanks to improved momentum recently. The division’s sales were 4% higher than in the prior-year period. Europe and Asia, especially China and India, contributed to the growth. The higher capacity utilisation had a positive impact on the operating profit margin, which increased to 10.8%. The new production and office building in Frutigen (Switzerland) was brought into operation as planned, and the new assembly sites for hydraulic power units were opened in Malaysia and Mexico. The aim of both sites is to be closer to customers.

Outlook for 2026Bucher Hydraulics anticipates a slight increase in sales on a comparable basis and a correspondingly slightly higher operating profit margin.

Bucher Emhart Glass

	January – June		Change			Fullyear
CHF million	2026	2025	%	%1)	%2)	2025
Order intake	151	142	6.7	9.6	8.8	297
Net sales	142	192	-25.8	-23.8	-24.6	374
Order book	120	140	-13.8	-11.3	-12.0	114
Operating profit (EBIT)	7	26	-72.4			47
% of net sales	5.0%	13.4%				12.6%
Average number of FTEs	1’439	1’531	-6.0		-8.4	1’496

¹⁾ Adjusted for currency effects
²⁾ Adjusted for currency and acquisition effects

Demand showing signs of stabilisationBucher Emhart Glass’ customers continued to be cautious with investments in the first half of the year, with demand improving towards the end of the reporting period. Order intake was 7% above the level of the prior-year period. Higher orders in the machinery and section business as well as a positive development in the service and spare parts business contributed to this growth. In addition, the inspection machinery segment recorded a slight increase. Sales reduced by 26% due to a lack of major projects and the low order intake in the previous periods. Some sales markets in Eastern Europe, Turkey and India developed positively. Very low capacity utilisation at the production plants weighed on the operating profit margin, which declined to 5.0%. The cost-saving measures implemented limited the decline and production planning was consistently adjusted in line with the low order book.

Outlook for 2026On a comparable basis, Bucher Emhart Glass expects significantly lower sales compared with the prior year. The operating profit margin is expected to be significantly lower than in 2025.

Bucher Specials

	January – June		Change			Fullyear
CHF million	2026	2025	%	%1)	%2)	2025
Order intake	171	167	2.4	4.1	3.7	337
Net sales	150	155	-3.2	-1.7	-2.4	322
Order book	132	109	20.6	22.5	22.5	112
Operating profit (EBIT)	-6	1	n.a.			10
% of net sales	-3.9%	0.7%				3.1%
Average number of FTEs	1’321	1’403	-5.8		-5.9	1’356

¹⁾ Adjusted for currency effects
²⁾ Adjusted for currency and acquisition effects

Subdued business performance with slight growth in order intakeBucher Specials’ markets showed a mixed performance in the first half of the year. At Bucher Vaslin, customers’ willingness to invest remained subdued, especially in Europe due to the wine producers’ low incomes. Orders at Bucher Unipektin also fell slightly compared with the high figure of the prior-year period. Bucher Landtechnik and Bucher Automation, on the other hand, increased their order intake. Overall, the division’s order intake was 2% above the level of the prior-year period. Sales remained 3% below the level of the prior-year period as the increase at Bucher Landtechnik was not able to fully compensate for the decline at Bucher Vaslin. The situation in the wine business remains tense and the low capacity utilisation weighed on profitability. As part of a restructuring process, Bucher Vaslin transferred production of its grape reception equipment range, consolidating its assembly and manufacturing activities at a single site. This measure resulted in additional costs of CHF 8 million in the reporting period. Further efficiency-enhancing measures are being driven forward at Bucher Specials. As part of these initiatives, the Bucher Automation business unit will be newly structured and assigned directly to two divisions with effect from the beginning of 2027. The segment focusing on control solutions for the glass industry will become part of the Bucher Emhart Glass division, while the remaining automation solutions segment and the production of power electronics will be integrated into the Bucher Hydraulics division. This will simplify processes and strengthen the collaboration with internal customers. Bucher Specials will in future comprise the business units Bucher Vaslin, Bucher Unipektin and Bucher Landtechnik.

Outlook for 2026Bucher Specials anticipates slight sales growth on a comparable basis. The operating profit margin is likely to be lower than in the prior year due to the current business situation at Bucher Vaslin and the restructuring costs.

Further strengthening of market positions and efficiency

Bucher is committed to driving innovation that makes complex technologies easy for customers to apply, while enhancing efficiency and boosting productivity. Matthias Kümmerle, CEO of Bucher Industries since April 2026: “When visiting the subsidiaries in recent months, I was impressed by their expertise and strong customer focus. They form the basis for Bucher to drive innovations that are optimally aligned with customer needs.” At the same time, Bucher is further strengthening its market positions, either organically or through targeted acquisitions that expand its market presence or tap into additional niche markets. Bucher is also increasing production efficiency and continuously improving cost structures, as is the case with Bucher Specials, for example.

Group outlook 2026

With its strategically chosen approach of local production and proximity to its customers, Bucher Industries is well positioned in the current environment. The Group’s broad set-up also contributes to its stability. However, the expected recovery in demand was partially dampened by increasing political uncertainty. For 2026, the Group overall expects slightly lower sales on a comparable basis. The operating profit margin is expected to be below the prior-year level (excluding the profit of CHF 43 million from the sale of a property in 2025).

The interim report as well as the presentation on the results for the first half of 2026 are available on bucherindustries.com under “Media dossiers”.

The conference on the half year results will be held at 2 p.m. via MS Teams (link to registration). The recording will subsequently be published on bucherindustries.com.