StarragTornos 2025 Sales Drop, Orders Stabilize

Key Financial Highlights

StarragTornos reported a 10.5% year-over-year decrease in preliminary 2025 net sales, totaling CHF 442.1 million, which missed analyst expectations. The Swiss machine tool manufacturer attributed the decline primarily to a significant drop in demand within the luxury goods segment.

Order Intake and Backlog Overview

On a more positive note, order intake for 2025 remained stable at CHF 472.8 million, a minor 1% decrease from the prior year, achieving a book-to-bill ratio of 1.07x. This resilience was supported by new contracts in the defense and commercial sectors. The year-end order backlog increased by 3.2% to CHF 336.4 million, driven by a substantial rise in aerospace orders in the fourth quarter.

Profitability and Future Outlook

The company has issued a warning that the decline in revenue, combined with restructuring costs, will negatively impact its EBIT and net profit. Despite these challenges, StarragTornos expects to report an overall positive result for the full year.

Summary

While StarragTornos faces revenue challenges from specific market segments, its stabilizing order book and strong backlog, especially in aerospace, indicate underlying strength. The company's ability to maintain a positive net result will be a key factor for investors to monitor.

FAQ

Q: What was the main reason for StarragTornos's sales decline?
A: The primary cause was a significant drop in demand from the luxury goods segment.

Q: Which sector is driving order growth for the company?
A: The aerospace sector was a key driver, with a significant increase in orders during the fourth quarter, complemented by new contracts in defense and commercial industries.

Source: Investing.com