Cicor Technologies Ltd (AO) | Buy | Solid H1 results: strong orders, FY guidance confirmed

Research evidence excerpt

Cicor Technologies Ltd (AO) | Buy | Solid H1 results: strong orders, FY guidance confirmed

Cicor Technologies Ltd Buy | Target Price: CHF165.00

Chart 1:Quarterly sales and order trends Chart 2:Relative organic performance vs. Western European EMS peers

Source: Kepler Cheuvreux Source: Kepler Cheuvreux

Adjusted EBITDA beat our expectations but may have slightly missed consensus. Group profitability was temporarily depressed

by production transfers, the integration of the acquired businesses, capacity expansion, and supply chain disruptions.

Management actually says the integration and profitability programme is largely completed. It is largely completed. Note that the

P&L still absorbs some double costs (Mercury site transfer and closing, move to Bronschhofen; extra costs for moving a mould

shop in Asia).

The EMS division, which accounts for 95% of group revenue, increased sales by 20% YOY to CHF315.8m, driven by the acquisitions

completed in 2025. Adjusted EBITDA margin declined to 8.5% as integration costs, production transfers and capacity expansion

temporarily diluted profitability. Management expects margins to recover as these measures are completed.

The smaller Advanced Substrate division increased revenue by 4% YOY to CHF 20.1m. Adjusted EBITDA margin declined to 7.7%,

reflecting a weak PCB market, a shift in Asian customer demand into H2 and temporary manufacturing issues during the capacity

ramp-up in Wangs. Management states these operational issues have now been resolved and expects profitability to improve in

H2.

Cicor is working closely with customers to safeguard the supply of components. FCF before M&A was CHF-11.5m, compared with

CHF+9.4m in H1 2025. Management attributed the deterioration to higher NWC, reflecting stronger Q2 revenues that increased