Cicor Technologies Ltd (AO) | Buy | H1 conf call: A&D still boosts orders, restructuring benefits to come

Research evidence excerpt

Cicor Technologies Ltd (AO) | Buy | H1 conf call: A&D still boosts orders, restructuring benefits to come

ect a recovery rather than

permanently lower profitability.

FY 2026 guidance confirmed, CMD on 4 November

Management reaffirmed FY 2026 guidance of CHF700m to CHF750m revenue and CHF70m to CHF80m adjusted EBITDA. On the

conference call, it was clarified that the outlook assumes current supply chain conditions remain broadly unchanged, with the

situation now significantly more manageable than during the post-COVID period.

The biggest issue currently is the supply of PCBs (local-for-local production is needed after decades of seeing the industry moving

to Asia, rising defence demand in Europe, and rising Asia demand due to AI). Lead times in some complex PCBs have increased

from 4 weeks to some 20 weeks, also because of some supply chain bottlenecks. The DRAM exposure of the group is rather low.

Management expects H2 revenue to increase by 10% to 25% sequentially, supported by completed integration work, the ramp-up

of major A&D and Healthcare programmes, easing supply chain bottlenecks and stronger operating leverage.

Major A&D and Healthcare Technology programmes are scheduled for the second half, underpinning this guidance.

The large delta between the high end and the low end of the revenue guidance is attributable to supply chain considerations.

The targeted robust double-digit adjusted EBITDA margin is expected to be driven primarily by execution rather than stronger

pricing.

The profitability programme remains on track to deliver more than CHF10m of recurring annual EBITDA improvements. More

than 80% of the planned workforce reductions had been completed by the end of June, with management expecting the majority

of the savings to become visible in H2.