SGS SA: SGS: Better than expected top-line growth

研报英文原文证据摘录

SGS SA: SGS: Better than expected top-line growth

28 July 2026

Will Kirkness

+44 20 7676 8355

European Business Services will.kirkness@bernsteinsg.com

SGS SA Filippo Giardini

+44 20 7762 4723

Rating filippo.giardini@bernsteinsg.com

Outperform

Price Target

SGSN.SW 110.00 CHF (103.00 OLD)

SGS: Better than expected top-line growth

2Q organic growth accelerated by an underlying c50bps, with broad-based strength more

Close Date 27 Jul 2026

than offsetting Middle East weakness. Despite earnings quality concerns, cash generation

SGSN.SW Close Price (CHF) 94.84

remained strong (FCF +25% YoY), leverage guidance was unchanged, and management

Price Target (CHF) 110.00

reinforced its focus on cash conversion. WIP growth was largely driven by acquisitions, FX and

Upside/(Downside) 16%

seasonality rather than deteriorating fundamentals. We tweak our FY26 estimates, but with an

52-Week Range 97.48/79.90

increase in interest expense and share count, our EPS declines 1.8%. We reiterate Outperform

EDME --

with a new target price of CHF 110 based on a 25xs FY27 P/E (prev. FY26).

FYE Dec

We estimate that from 1Q to 2Q there was a 50bps underlying acceleration in yoy Div Yield 3.4%

organic growth. Taking 5.1% in 1Q as the starting point, the comp was 0.6% easier and Market Cap (CHF) (M) 18,915

there was a c0.1% benefit from lower contract shedding, however, this was offset by a 0.4% EV (CHF) (M) 22,947

deterioration in the Middle East. That suggests, all being equal that 2Q organic should have Performance YTD 1M 6M 12M

been 5.4% but the print was 5.9% suggesting a 50bps ‘underlying’ improvement in the Absolute (%) 4.4 1.4 0.4 12.9

yoy growth rate. It was encouraging to see strong growth across the portfolio, aside from EDME (%)

perhaps I&E which houses the main Middle East exposure.