Burckhardt Compression increases order intake and confirms guidance

* including expenses related to the corporate centre

Group financial performance: resilience in a temporarily disrupted market 

Group order intake increased by 5.4% to CHF 422.5 mn (+2.9% net of currency translation effects and acquisitions) compared with the first half of fiscal year 2025. Sales decreased by 11.1% to CHF 459.0 mn (-13.6% net of currency translation effects and acquisitions) due to a lower order backlog in both divisions after a period of record highs and expected phasing. Thanks to a higher share of the Services Division, the gross margin increased by 0.3 percentage points to 28.6%, highlighting the resilience of the company's business model. Operating income (EBIT) amounted to CHF 55.5 mn and the EBIT margin was 12.1%. For comparison, excluding CHF 3.4 mn in one-off restructuring costs, the EBIT margin was 12.8%, similar to the prior year (12.7%). Higher financial income and a slightly higher tax rate of 24.9% resulted in a net income of CHF 43.0 mn, compared with CHF 48.7 mn in the first half of fiscal year 2025. 
The Group continues to optimize its asset utilization and increase value creation, as evidenced by a strong Return on Net Operating Assets (RONOA) of 40.1% (previous year period: 36.2%), significantly exceeding the mid-range guidance of >25%.

Systems Division: orders return to growth; double-digit EBIT margin maintained 

Order intake in the Systems Division increased by 6.3% to CHF 260.9 mn (+3.0% net of currency translation effects and acquisitions). The Marine market continued to perform strongly, especially for LNG and LPG carriers. First-half order intake also included reference orders, including the first-ever large CO2 transport ship for the Northern Lights project, as well as projects for hydrogen applications in the semiconductor industry in Taiwan and Korea. These wins demonstrate the company’s proven compressor technology, strong customer relationships and expanding application portfolio. In addition, the company completed the acquisition of Fornovo Gas in July 2026, accelerating its growth in biogas and biomethane applications. On the other hand, industry overcapacity, trade uncertainty and delayed customer investment decisions continued to weigh on China’s market. Logistics and feedstock disruptions in the Middle East added further pressure across Asia and Europe. 
Sales declined by 15.2% to CHF 320.1 mn (-18.0% net of currency translation effects and acquisitions), due to project delivery schedules. Gross profit amounted to CHF 66.0 mn, while the gross margin decreased by 0.5 percentage points to 20.6%. Lower capacity utilization was largely offset by operational adjustments and continuous cost optimizations. The Systems Division again achieved a double-digit operating margin despite restructuring costs and lower sales. Operating income (EBIT) reached CHF 32.9 mn, with an EBIT margin of 10.3%, compared with CHF 38.6 mn and 10.2% in the prior-year period.

Services Division: resilient business performance amid market disruptions 

Order intake in the Services Division increased by 4.1% to CHF 161.6 mn (+2.6% net of currency translation effects and acquisitions), driven by further growth in the Marine market and a few large orders in Asia. This was achieved even though the Service market was affected in essence by the same temporary disruptions as the new equipment market. Sales remained at the same level compared to prior year period at CHF 138.9 mn (-1.7% net of currency translation effects and acquisitions). Gross profit was CHF 65.4 mn, with a gross margin of 47.1%, compared with CHF 66.4 mn and 47.8% in the prior-year period. The lower gross margin reflects a less favorable product mix and reduced capacity utilization. Operating income (EBIT) was CHF 30.1 mn, corresponding to an EBIT margin of 21.6%, compared with CHF 33.2 mn and 23.9% in the prior-year period. The company expects maintenance activity across several customers in the Middle East and Asia to recover progressively when the situation in the Strait of Hormuz normalizes.

Measures implemented to strengthen competitiveness and reduce cost base

As announced on August 19, 2026, Burckhardt Compression has been simplifying its organizational structure, consolidating selected functions, optimizing business processes and further strengthening its organization in India. These measures will align the cost base with the expected lower workload in the coming quarters and improve the company’s cost competitiveness. The half-year result includes CHF 3.4 mn in one-off restructuring costs. Based on current volumes, Burckhardt Compression expects these measures to deliver approximately CHF 20 mn in annual savings from fiscal year 2027 onwards.

Fiscal year 2026 guidance confirmed; stronger second half expected 

Stronger sales are expected in the second half of the fiscal year due to the timing of deliveries in both divisions and the current order backlog. Burckhardt Compression therefore confirms its guidance for fiscal year 2026: Group sales between CHF 900-1’000 mn, an EBIT margin of around 12%. The outlook remains subject to geopolitical developments and other global or regional disruptions.

Global megatrends support medium-term growth 

Despite creating market uncertainty in the short-term, the blockade of the Strait of Hormuz has further increased the strategic importance and urgency for governments globally to invest in additional energy infrastructure. This includes LNG and LPG storage, gas pipelines, transportation infrastructure and ships, which are applications where Burckhardt Compression plays a leading role. The Middle East countries with an access to shipping routes other than the Strait of Hormuz, Oman, UAE and Saudi Arabia, are also planning new investments in refineries or petrochemical plants. These opportunities, combined with the additional market applications continuously developed by Burckhardt Compression, provide the basis to achieve the company's Mid-Range Plan target of CHF 1.2 bn in sales and an EBIT margin of 12% to 15%.