Sulzer (AO) | Buy | Preview Q2 2026: All eyes are on the second half of 2026

研报英文原文证据摘录

Sulzer (AO) | Buy | Preview Q2 2026: All eyes are on the second half of 2026

Sulzer Buy | Target Price: CHF196.00

Flow Equipment and Services performing broadly as planned: Core operations are tracking expectations, with no major deterioration in

underlying demand trends.

Negative FX impact on reported numbers: Q2 sales are likely to be affected by approximately 3–4% negative currency effects, weighing

on reported growth.

Temporary mix pressure in Services: High oil prices are encouraging customers to extend maintenance intervals and keep plants

running, delaying some higher-margin service work. Management is likely to emphasize that these activities are deferred rather than lost

and should support future quarters.

Mixed end-market picture: The gas turbine business continues to perform well, while broader Energy markets are seeing delayed capex

decisions. Nevertheless, Sulzer is expected to highlight a strong large-project pipeline for H2, particularly in the Middle East and the

Americas.

H1 profitability under pressure but still resilient: We expect H1 sales to decline around 6% reported YoY and EBITDA margin to reach

13.6%, down roughly 80bps YoY, reflecting the weaker volume and business mix.

Pricing discipline remains a positive: Despite the softer market environment, Sulzer appears to be maintaining pricing discipline, with

order intake gross margin expected to improve by around 50bps YoY to 37%.

Sulzer guides for 2026 order intake growth of 1% to 5% and a sales growth between 2% and 5% (all FX adjusted and YOY). The

EBITDA margin is expected to further increase to around 16.5% of sales. Already with the FY guidance, Sulzer stated that order

intake development in 2026 is expected to be backend-loaded, with a more muted first half due to high comps from 2025.