Fewer orders and lower sales - US tariffs, currency effects and cost pressure weigh on earnings

SCHLATTER INDUSTRIES AG - SIX SWISS EXCHANGE: STRN - ISIN: CH0002277314


Ad hoc announcement pursuant to article 53 LR   

Schlieren, 27 March 2026. The Schlatter Group generated net sales of CHF 104.4 million in fiscal year 2025 (2024: CHF 113.2 million). Order intake fell to CHF 91.7 million (2024: CHF 101.6 million). Earnings were impacted by U.S. tariffs, unfavorable exchange rates and a higher cost base. EBIT was CHF 0.5 million (2024: CHF 2.0 million). Due to high financial expenses resulting from foreign currency devaluations on the balance sheet at the Schlieren site, the Group reported a net loss of CHF -1.4 million (2024: CHF 1.7 million).

Due to high demand for solutions for the production of cable trays, sales of industrial mesh systems showed positive growth. Sales of reinforcement mesh systems also increased compared to the previous year. By contrast, sales of rail welding machines and weaving machines, as well as the after-sales segment, declined. Earnings were significantly impacted by the strength of the Swiss franc, the weakness of the U.S. dollar, U.S. tariffs, and the increased cost base in recent years. Due to lower exchange rates, balance sheet items denominated in foreign currencies at the Schlieren site had to be written down. This resulted in high financial expenses and, consequently, a negative consolidated net income. The order backlog as of December 31, 2025, stood at CHF 48.8 million (previous year: CHF 61.4 million).

Welding Segment

Key Figures

Order intake: CHF 77.5 million (2024: CHF 85.9 million)

Net revenue: CHF 85.1 million (2024: CHF 91.3 million)

Order backlog as of Dec. 31, 2025: CHF 42.9 million (Dec. 31, 2024: CHF 50.4 million)

In the Welding segment, demand for industrial mesh systems remained high; order intake was above the long-term average. Order intake for reinforcement mesh systems increased slightly. In the rail welding product area, significantly fewer orders were received following strong previous years. In after sales, volume was below the previous year, partially offset by higher revenues from “Labor Services.”

Weaving Segment

Key Figures

Order intake: CHF 14.2 million (2024: CHF 15.8 million)

Net sales: CHF 19.4 million (2024: CHF 21.9 million)

Order backlog: CHF 5.9 million (2024: CHF 11.0 million)

In the Paper Machinery and Converting (PMC) segment, investment appetite remained subdued in North America and Europe in 2025; numerous projects were postponed. The majority of orders came from China. In Western markets, retrofits of existing equipment took precedence over new machines.

Outlook for 2026

The outlook for the capital goods business and after-sales remains subdued. Uncertainties in the geopolitical environment, the strength of the Swiss franc, and the recession in key markets are weighing on demand. In the Welding segment, capacity utilization at the Schlieren site is largely secured for the first half of 2026; in the Weaving segment, there are gaps in capacity utilization.

The focus for 2026 is on securing additional orders, increasing efficiency and margins, and reducing costs, which are expected to have a positive impact, particularly in the second half of the year. At the same time, innovation will be driven forward and market development intensified.

For the current fiscal year, Schlatter expects a decline in revenue and aims for at least a break-even result for the full year.

The Board of Directors will propose to the Annual General Meeting on May 6, 2026, that no dividend be paid for the 2025 fiscal year.

The complete 2025 Annual Report is available on the Schlatter Group website:

www.schlattergroup.com/de/investor-relations/publikationen/

Further Information

Werner Schmidli

Chief Executive Officer

Mobile +41 79 343 62 62

werner.schmidli@schlattergroup.com

Agenda

Schlatter Group (www.schlattergroup.com)
The Schlatter Group is one of the leading specialists in plant engineering for resistance welding systems as well as weaving and finishing equipment for the production of paper machine clothing, wire fabrics and wire mesh. Thanks to its many years of experience in the field of plant technology, its innovative strength and its reliable service, the Schlatter Group – which is listed on the Sparks Standard of SIX Swiss Exchange – guarantees its customers a range of powerful and high-quality production equipment.

This media information contains certain forward-looking statements, e.g. statements using the words "believes," "assumes," "anticipates," or formulations of a similar nature. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which could lead to substantial differences between the actual future results, the financial situation, the development or performance of the Company and those either expressed or implied by such statements. Such factors include, among other things: competition from other companies, the effects and risks of new technologies, the Company's continuing capital requirements, financing costs, delays in the integration of acquisitions, changes in the operating expenses, the Company's ability to recruit and retain qualified employees, unfavorable changes in the applicable tax laws, and other factors identified in this communication. In view of these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company accepts no obligation to continue to report or update such forward-looking statements or adjust them to future events or developments. 

This information can be downloaded as a PDF from the following link:
Ad hoc announcement pursuant to article 53 LR

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