Stock Markets March 5, 2026

R&S Group Tops Second-Half Profit Estimates and Reaffirms Medium-Term Targets

Swiss transformer maker posts stronger-than-expected margins and confirms orders, sales and backlog as it reiterates 8%-12% organic growth goal

By Sofia Navarro
R&S Group Tops Second-Half Profit Estimates and Reaffirms Medium-Term Targets

R&S Group reported second-half fiscal 2025 results that exceeded analyst forecasts for EBITDA, EBIT and net profit, delivered an adjusted full-year EBITDA margin above prior guidance, and reconfirmed its order intake, sales and backlog while maintaining medium-term targets for organic growth and margins.

Key Points

  • Second-half EBITDA of CHF43 million topped the CHF40 million consensus; second-half EBIT of CHF39 million and net profit of CHF29 million also beat forecasts.
  • Adjusted full-year EBITDA margin stood at 20.5%, above consensus of 20.3% and the company's guidance of slightly above 20%.
  • Confirmed operational figures include second-half orders of CHF232 million, group sales of CHF209 million and backlog of CHF326 million; medium-term targets of 8%-12% organic growth and 19%-21% EBITDA margins remain in place.

R&S Group on Thursday released second-half fiscal 2025 results that outperformed analyst expectations on several key profit metrics and reiterated its medium-term financial ambitions.

For the second half, the Swiss transformer manufacturer recorded EBITDA of CHF43 million, above the CHF40 million consensus. The reported EBITDA margin was 20.5%, which the company said equates to a 19.7% margin after adjusting for a one-off gain. Second-half EBIT reached CHF39 million, beating the CHF34 million consensus, and net profit for the period was CHF29 million versus the CHF26 million analysts had forecast.

On a full-year basis, R&S Group posted an adjusted EBITDA margin of 20.5%, exceeding both the consensus estimate of 20.3% and the companys own prior guidance that had targeted slightly above 20%.

The company confirmed previously disclosed operational figures for the period: second-half orders of CHF232 million, group sales of CHF209 million and a backlog of CHF326 million. R&S Group said a positive fourth quarter 2025 supported improved operating margins in the second half. The one-off gain noted in results was attributed to a pre-tax profit on the sale of non-core electrical switches.

R&S Group did not issue explicit guidance for fiscal 2026. Instead, it reaffirmed its medium-term targets, which call for organic growth of 8% to 12% and EBITDA margins in the 19% to 21% range. Market consensus for fiscal 2026 projects sales of CHF443 million and an adjusted EBITDA margin of 19.5%.

The company manufactures and supplies transformers from six production sites located in Switzerland, Italy, Poland and the United Arab Emirates.


Takeaway - R&S Group reported second-half and full-year margins that outpaced analyst expectations, confirmed key order and sales metrics, and kept its medium-term growth and margin objectives intact, while a non-core disposal contributed a one-off gain.

Risks

  • No specific fiscal 2026 guidance was provided, creating uncertainty about near-term performance and planning assumptions - this affects investor visibility in industrial and manufacturing sectors.
  • A portion of the reported margin improvement was supported by a one-off gain from the disposal of non-core electrical switches, which may limit the sustainability of certain profit enhancements in future periods - this carries implications for financial stability in capital goods manufacturers.

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