Komax Cuts Costs, Completes Schleuniger Integration and Deepens China Push Amid 2025 Downturn

Komax Holding AG ( (CH:KOMN) ) has issued an announcement.

Komax Group reported a challenging 2025, with sales down 7.9% to CHF 580.9 million due mainly to weakness in the automotive market, while order intake dipped 2.1% amid geopolitical tensions and investment caution. Despite negative currency effects, restructuring costs, and U.S. customs-related uncertainty, the company achieved a positive EBIT of CHF 6.8 million and maintained a solid equity ratio of 52.4%, though it ended the year with a net loss of CHF 7.9 million.

To adapt to the tougher environment, Komax implemented a broad cost-cutting and restructuring program, closing several production and engineering sites in Europe and Japan, reducing headcount by about 9%, and targeting a CHF 25 million structural cost reduction from 2026 onward. At the same time, it advanced its transformation by completing key merger steps with Schleuniger, strengthening its “local for local” production and partnerships in China, and diversifying into industrial, infrastructure, aerospace, railway, and data-center-related business, thereby reducing its dependence on automotive and positioning for future growth.

Regional performance diverged sharply, with Europe hit by a 19.4% sales decline linked to the weak automotive sector, while Africa grew 51.8% on wiring-harness production shifts from Eastern Europe and Asia/Pacific saw only a modest 3.7% drop. The company expanded its service business, increased sales in Aerospace & Railway by more than 10%, and continued to invest heavily in research and development, resulting in an elevated R&D ratio of 12.2% as it localizes production in Asia and streamlines its portfolio post-merger.

Governance changes are also underway, as long-serving board member David Dean will step down at the 2026 Annual General Meeting due to a term limit, with the remaining six directors standing for re-election and no replacement proposed. For stakeholders, the combination of aggressive cost restructuring, geographic and sector diversification, and deeper integration with Chinese partners suggests Komax is prioritizing long-term resilience and growth, even at the cost of short-term profitability and higher net debt.

The most recent analyst rating on (CH:KOMN) stock is a Hold with a CHF68.00 price target. To see the full list of analyst forecasts on Komax Holding AG stock, see the CH:KOMN Stock Forecast page.

More about Komax Holding AG

Komax Holding AG is a Swiss-based provider of automated solutions for wire processing, serving primarily the automotive industry as well as industrial, infrastructure, transportation, aerospace, and railway markets. Following its merger with Schleuniger and a strategic push into Asia, particularly China, the group is broadening its customer base and reducing reliance on the cyclical European automotive sector.

Average Trading Volume: 18,704

Technical Sentiment Signal: Sell

Current Market Cap: CHF270.7M

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