SFS Group Q2 revenue hit CHF 1.27 billion, up 5.7%. Adjusted EBIT margin slipped to 11.0% as ERP and facility costs weighed. Free cash flow fell. Full-year margin target of 12.0%-12.5% remains in place.
SFS Group AG posted a 5.7% revenue increase in the 2026 second quarter, reaching CHF 1.27 billion, driven by its automotive and industrial distribution segments. Adjusted earnings before interest and taxes (EBIT) rose 4.9% to CHF 140.1 million, though the adjusted EBIT margin slipped to 11.0% from 11.1% a year earlier, squeezed by costs tied to a new ERP system rollout and facility expansions.
Net income attributable to shareholders came in at CHF 92.0 million, up from CHF 87.8 million in the prior-year period. The bottom line got a lift from lower net financial expenses, which fell to CHF 9.6 million from CHF 14.0 million.
The Engineered Components division, SFS's largest segment, saw revenue rise 5.3% to CHF 642 million. The Industrial Distribution unit posted a 6.9% revenue gain to CHF 425 million, while Fastening Systems revenue rose 4.0% to CHF 205 million.
Free cash flow dropped to CHF 87.5 million from CHF 128.9 million, reflecting higher capital spending on IT systems and property. Net debt rose to CHF 867 million from CHF 811 million at the end of 2025, pushing the leverage ratio to 1.5x from 1.4x.
The company confirmed its full-year 2026 outlook for revenue of CHF 5.4 billion to CHF 5.6 billion and an adjusted EBIT margin of 12.0% to 12.5%.
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