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Georg Fischer AG (CH:GF)
:GF
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Georg Fischer AG
(GF)
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Rating:49Neutral
Price Target:
CHF50.00
▲(2.50% Upside)
Action:ReiteratedDate:02/27/26
The score is held down primarily by financial risk (high leverage/negative equity) and weaker 2025 operating performance (revenue decline and sharply lower free cash flow), reinforced by bearish technicals. These are partially offset by a reasonable valuation and recovery-oriented 2026 guidance tied to cost reductions and improved free cash flow targets.
Positive Factors
Focused pure‑play strategy
Converting to a pure‑play Flow Solutions company sharpens strategic focus and simplifies capital allocation. Over the medium term this should improve operational alignment, allow targeted R&D and sales investments in core markets, and reduce execution complexity from non‑core businesses.
Data‑center & infrastructure growth exposure
Rapidly growing liquid‑cooling sales and a deep pipeline indicate exposure to structural data‑center demand. Scaling this business toward management’s CHF 300m target would diversify revenue, capture higher‑margin system sales, and leverage GF’s flow expertise over several years.
Cost and synergy programs
A concrete CHF 40m cost program and already delivered CHF 29m of synergies demonstrate management discipline on structural margin improvement. Sustained implementation and targeted reinvestment in customer‑facing areas can raise comparable margins and improve cash generation durability.
Negative Factors
High leverage and weak equity base
Elevated absolute debt and a negative equity position materially reduce financial flexibility. Over 2–6 months this limits the company’s ability to absorb shocks, increases refinancing and covenant risk, and constrains strategic investments or opportunistic M&A without deleveraging.
Severely weakened free cash flow
A collapse in free cash flow despite positive operating cash flow signals poor cash conversion and higher investment or working‑capital strain. Persistently low FCF undermines debt paydown prospects, limits reinvestment capacity and raises reliance on external financing to fund growth or dividends.
Top‑line volatility and margin compression
A sharp revenue decline and gross margin erosion indicate structural weakness from adverse mix, semiconductor delays and pricing pressure. Continued top‑line volatility makes margin recovery harder, raising the likelihood that sustained pricing or mix headwinds will pressure long‑term profitability.
Georg Fischer AG (GF) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF4.00B
Dividend Yield2.53%
Average Volume (3M)155.19K
Price to Earnings (P/E)38.8
Beta (1Y)0.80
Revenue Growth-24.42%
EPS Growth32.48%
CountryCH
Employees19,023
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-0.70
Shares Outstanding82,017,960
10 Day Avg. Volume175,746
30 Day Avg. Volume155,190
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)-488.25
Price to Sales (P/S)1.47
P/FCF Ratio219.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF63.00Price Target Upside29.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)2.66
Revenue Forecast (FY)CHF3.40B
Georg Fischer AG Business Overview & Revenue Model
Company DescriptionGeorg Fischer AG provides piping systems, and casting and machining solutions in Europe, the Americas, Asia, and internationally. The company offers plastic and metal piping systems for the transportation of water, abrasive and aggressive liquids, and gases, as well as corresponding services for industry, utilities, and building services sectors; and fittings, valves, pipes, automation, and jointing technologies for various water cycle applications. It also provides lightweight components for mobility and energy industries. In addition, the company offers machines, system solutions, and customer services for manufacturing molds, tools, and parts in the aerospace, information and communication technology, electronic, medical, and automotive industries. Further, it provides milling, wire-cutting, and die-sinking services; spindles; electro discharge machining (EDM), laser texturing, laser micromachining, and additive manufacturing machines; and tooling and automation services, as well as digitalization solutions. The company was founded in 1802 and is headquartered in Schaffhausen, Switzerland.
How the Company Makes MoneyGeorg Fischer AG generates revenue through several key streams across its three divisions. The GF Piping Systems segment earns money by supplying a wide range of products such as pipes, fittings, and valves, primarily used in water and gas applications. This sector benefits from ongoing infrastructure investments and environmental regulations favoring sustainable solutions. GF Casting Solutions generates revenue by producing lightweight and high-strength cast components, primarily for the automotive industry, capitalizing on the trend towards electric vehicles and more efficient manufacturing processes. GF Machining Solutions provides high-precision machines and services, generating income through equipment sales, maintenance contracts, and tooling solutions. Additionally, strategic partnerships with technology providers and industry leaders enhance GF's market reach and innovation capabilities, contributing positively to its overall earnings.
Georg Fischer AG Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: strategic transformation milestones (pure‑play focus, VAG acquisition, Uponor integration), clear sustainability achievements, initial traction in attractive growth areas (data center cooling) and concrete cost/synergy programs are positive. However, 2025 financials were pressured by divestments, a weak semiconductor cycle (‑16%), FX and tariff headwinds, impairments and one‑offs, low free cash flow in 2025 and elevated net debt/elevated tax rate that weigh on near‑term reported results. Management provided a recovery‑oriented 2026 guide (low single‑digit organic growth, higher EBITDA margin and strong free cash flow guidance) but significant near‑term accounting and cash impacts remain.Q4-2025 Updates
Positive Updates
Industry & Infrastructure Momentum
I&I Flow Solutions delivered 1.9% organic sales growth (H2 organic 2.2% vs H1 1.6%), with strong infrastructure momentum and growth in U.S. gas distribution; Americas grew 3.5% organically and is nearly a CHF 1 billion business.
Data Center Cooling Traction
Data center / liquid cooling sales tripled to ~CHF 30 million in 2025; pipeline includes 7 pilot projects, >30 proof‑of‑concepts and >20 advanced discussions; target to grow data center business to CHF 300 million over 5–6 years.
Run‑rate Synergies and Cost Program
Achieved CHF 29 million run‑rate synergies from Uponor integration in 2025 and launched Fit for Growth to remove CHF 40 million of costs in 2026 (majority to be secured by end of Q1).
Sustainability Milestones
Expanded products with social/environmental benefits to 77% of portfolio, reduced Scope 1 & 2 CO2e emissions by 51% vs 2019 baseline, increased carbon‑neutral sites to 12 and exceeded accident reduction targets.
Capacities and Investments
Opened a new 15,000 m2 facility in Shawnee, Oklahoma (doubling capacity) for U.S. natural gas sector; upgraded Seewis plant to world‑class production for ball valves and actuators.
Order Intake Trends
Order intake for I&I grew about 2% organically for the year; Building Flow Solutions order intake declined ~2.5% organically.
2026 Financial Guidance
Management expects low single‑digit organic sales growth for 2026 and a comparable EBITDA margin of 14%–16% (corresponding to ~10.5%–12.5% at EBIT), plus Flow Solutions free cash flow guidance CHF 175–200 million for 2026.
Shareholder Return
Proposed dividend of CHF 1.35 per share, maintained at prior year level (subject to shareholder approval).
Transformation to Pure‑play Flow Solutions
Completed divestment of Casting Solutions and Machining Solutions to become a pure‑play Flow Solutions company; acquisition of VAG and ongoing Uponor integration positioning GF as a one‑stop Flow Solutions provider across Buildings, Industry and Infrastructure.
Flow Solutions Sales and Organic Growth
Flow Solutions sales of CHF 3.0 billion in 2025 with 0.6% organic growth for the segment (core Flow Solutions 0.6% organically for the year; 1.2% organic in H2).
Profitability (Comparable Metrics)
Comparable EBIT margin for Flow Solutions was 10% (excluding items affecting comparability); comparable EBITDA margin for Flow Solutions was 13.4%.
Negative Updates
Group Sales Decline and Deconsolidation Impact
Group net sales fell to CHF 4.1 billion from CHF 4.8 billion, primarily due to deconsolidation of Machining Solutions; organic group sales down 1.7%.
Semiconductor‑Related Weakness
Semiconductor‑related sales declined 16% organically in 2025 due to persistent project delays (U.S., Europe, China), causing an unfavorable product mix and pressuring margins.
Building Flow Solutions Decline
Building Flow Solutions organic sales declined 2.7% (adjusted decline 1.8% after discontinued product lines); Europe down ~2.1% organically and U.S. construction market weakened in H2.
Adverse Currency and Tariff Effects
Foreign exchange reduced group sales by ~CHF 153 million and negatively impacted EBIT (~CHF 29 million); tariffs estimated between CHF 5 million and CHF 10 million impacted U.S. industrial business.
Items Affecting Comparability and Impairments
One‑offs included CHF 44 million restructuring/other at EBITDA level, CHF 143 million book gain on Machining Solutions, and impairments/value adjustments of CHF 83 million + CHF 83 million (total CHF 166 million) related to Casting Solutions; net result effect and one‑offs depressed reported net profit.
Reported Profitability and Adjustments
Group comparable EBIT margin declined to 7.6%; reported group EBIT margin 7.9%; adjusted net profit ~CHF 147 million after removing divestment and impairment items, while net profit to shareholders (including items) was CHF 103 million.
Weak Free Cash Flow and Elevated Net Debt
Free cash flow excluding M&A declined to CHF 21 million in 2025; cash & cash equivalents fell to CHF 569 million; net debt ~CHF 1.7 billion (or ~CHF 1.4 billion after certain proceeds), with net debt/EBITDA ~3x and equity reduced to CHF 41 million (equity ratio ~1.1%).
Employee Reductions and Restructuring Impact
Fit for Growth will affect ~600 employees (~5% of workforce), with ~10% of those roles located in Switzerland; restructuring and severance charges and the human impact are material.
Elevated Tax Rate and 2026 Accounting Effects
Corporate tax rate temporarily elevated to ~40% in 2025 due to nonrecurring taxes; management expects elevated tax rate to persist into 2026 and normalize by 2027 (~26%); additionally, divestment‑related noncash effects (~CHF 180 million) will negatively impact 2026 reported EBIT/EBITDA.
Profitability Pressure from Product Mix
I&I comparable EBIT margin declined to 10.9% primarily due to unfavorable product mix (lower semiconductor sales), FX and tariffs, weighing on group margins.
Company Guidance
Management guided for 2026 to deliver low single‑digit organic sales growth with a comparable EBITDA margin of 14–16% (implying comparable EBIT of 10.5–12.5%) and free cash flow for Flow Solutions of CHF 175–200m; to support this they are implementing the Fit for Growth program to remove CHF 40m of costs in 2026 (majority secured by end‑Q1), impacting ~600 roles and with CHF 5–10m of the savings to be reinvested in sales/customer‑facing resources, plus a net‑working‑capital push targeting ~5% inventory reduction; management expects end‑2026 leverage below 3x net‑debt/EBITDA (versus ~3x at 2025 year‑end) but cautioned 2026 will include a divestment‑related non‑cash charge of ~CHF 180m and a temporarily elevated tax rate (~40%) before normalizing to ~26% in 2027; they reiterated medium‑term objectives of CHF 40–50m run‑rate synergies by 2027 (CHF 29m achieved in 2025), CHF 300m data‑center sales by 2030 (data‑center sales were ~CHF 30m in 2025), and see semiconductor‑related demand rising roughly 15% in 2026.Georg Fischer AG Financial Statement Overview
Summary
Overall financials are pressured by a sharp 2025 revenue decline (~-19.8%), gross margin compression, and a steep drop in free cash flow (~20M, down ~86.5%). The biggest risk is the balance sheet: high debt (~2.26B) alongside negative equity in 2025 increases financial risk and reduces flexibility despite still-positive operating cash flow.Income Statement
Profitability has been positive but weakening: net margin fell to ~3.4% in 2025 from ~5–7% in 2021–2024, despite EBIT margin improving to ~13.0%. Revenue trajectory is the key concern—2025 revenue declined ~19.8% after being roughly flat in 2023–2024, indicating meaningful top-line volatility. Gross margin also compressed sharply in 2025 (~29.1%) versus 2024 (~41.6%), suggesting pricing/mix or cost pressure.47
Neutral
Balance Sheet
Leverage and capital structure are the main weakness. Total debt is high (~2.26B in 2025), while shareholders’ equity turned slightly negative in 2025 (and was also negative in 2023), which makes the balance sheet appear thin and increases financial risk. The debt-to-equity figure is not meaningful in a negative-equity year, but the underlying message is clear: debt is large relative to the equity base, and return on equity is negative in 2025 due to the equity deficit.18
Very Negative
Cash Flow
Operating cash flow remains positive (277M in 2025), but cash generation deteriorated materially. Free cash flow dropped to ~20M in 2025 (down ~86.5% vs 2024) and covered only ~7% of net income, indicating weaker cash conversion and/or higher investment needs. The company also shows relatively modest operating cash flow relative to debt (coverage ~0.18 in 2025), which adds pressure given the elevated leverage.36
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.00B | 3.89B | 4.03B | 4.00B | 3.72B |
| Gross Profit | 874.00M | 1.62B | 899.00M | 899.00M | 748.00M |
| EBITDA | 495.00M | 510.00M | 467.00M | 513.00M | 414.00M |
| Net Income | 103.00M | 214.00M | 235.00M | 276.00M | 214.00M |
Balance Sheet | |||||
| Total Assets | 3.64B | 4.28B | 4.12B | 3.73B | 3.81B |
| Cash, Cash Equivalents and Short-Term Investments | 575.00M | 682.00M | 566.00M | 894.00M | 944.00M |
| Total Debt | 2.26B | 2.57B | 2.44B | 735.00M | 999.00M |
| Total Liabilities | 3.60B | 4.12B | 4.10B | 2.08B | 2.31B |
| Stockholders Equity | -9.00M | 109.00M | -44.00M | 1.60B | 1.47B |
Cash Flow | |||||
| Free Cash Flow | 20.00M | 178.00M | 133.00M | 165.00M | 146.00M |
| Operating Cash Flow | 277.00M | 393.00M | 338.00M | 331.00M | 291.00M |
| Investing Cash Flow | 135.00M | -281.00M | -2.12B | -123.00M | -168.00M |
| Financing Cash Flow | -462.00M | -4.00M | 1.50B | -236.00M | -35.00M |
Georg Fischer AG Technical Analysis
Negative
48.78
Price Trends
53.12
Negative
54.37
Negative
59.15
Negative
Market Momentum
-0.48
Positive
31.04
Neutral
15.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:GF, the sentiment is Negative. The current price of 48.78 is below the 20-day moving average (MA) of 53.59, below the 50-day MA of 53.12, and below the 200-day MA of 59.15, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 31.04 is Neutral, neither overbought nor oversold. The STOCH value of 15.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:GF.
Georg Fischer AG Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | CHF2.01B | 27.15 | ― | 2.17% | 11.43% | 6.46% | |
71 Outperform | CHF16.32B | 73.05 | 32.09% | 1.63% | 19.22% | 11.62% | |
65 Neutral | CHF3.91B | 17.31 | ― | 2.99% | -11.64% | -24.17% | |
65 Neutral | $5.74B | 19.59 | 23.37% | 2.90% | 5.79% | 13.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | CHF1.60B | 26.86 | ― | 1.46% | -3.67% | -12.95% | |
49 Neutral | CHF4.00B | 38.83 | ― | 2.53% | -24.42% | 32.48% |
* Industrials Sector Average
CH:GF
Georg Fischer AG
48.78
-20.76
-29.85%
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Kardex AG
261.00
-3.04
-1.15%
CH:INRN
Interroll Holding AG
1,934.00
-186.28
-8.79%
CH:BUCN
Bucher Industries AG
382.00
0.19
0.05%
CH:SUN
Sulzer AG
170.00
14.53
9.35%
CH:VACN
VAT Group AG
544.20
203.59
59.77%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.