OC Oerlikon Corporation AG (OERL) AI Stock Analysis

• Market Cap: CHF1.29B
• Dividend Yield: 6.26%
• Average Volume (3M): 573.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -17.75%
• EPS Growth: 83.94%
• Country: CH
• Employees: 12,064
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.04
• Shares Outstanding: 339,758,600
• 10 Day Avg. Volume: 541,486
• 30 Day Avg. Volume: 573,808
• PEG Ratio: 0.43
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 10.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF4.45
• Price Target Upside: 11.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.19
• Revenue Forecast (FY): CHF1.57B

• Rating: 54 Neutral
• Price Target: CHF4.50 ▲(13.07% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held back primarily by weak financial performance (2025 net loss, steep revenue decline, and higher leverage), partially offset by solid technical momentum and a relatively attractive dividend yield despite a negative P/E.

Positive Factors

Business Diversification

Oerlikon’s exposure to multiple end markets (aerospace, automotive, energy) and product lines (coatings, polymers, fiber equipment, services) provides durable revenue diversification. This reduces dependence on a single cyclical market and supports resilience across economic cycles.

Cash Generation

Positive operating cash flow and step-up in free cash flow indicate the business can generate internal funding for operations and selective investments. Durable cash generation helps fund R&D, services, and gradual deleveraging even while earnings recover.

Underlying Operating Margins

Sustained gross and mid-teen EBITDA margins show core operations remain economically viable. That operating profitability implies pricing power or cost control in core segments, giving a foundation for earnings recovery if volumes stabilize.

Negative Factors

Revenue Decline & Loss

A 2025 net loss and material revenue drop signal structural demand or competitive pressure. Persistently lower top-line volumes reduce operating leverage, hinder reinvestment capacity, and can depress returns long-term if market share or end-market demand do not recover.

High Leverage

Elevated and rising leverage materially reduces financial flexibility, increases interest expense sensitivity, and limits strategic options. With equity contracting and returns negative, high leverage raises refinancing and solvency risk if earnings remain under pressure.

Weak Cash Coverage of Debt

Although cash generation exists, coverage of debt is low, implying slow deleveraging absent a sustained earnings rebound. Limited coverage constrains capital allocation to capex, R&D, and dividends, and leaves the firm vulnerable to interest-rate or demand shocks.

OC Oerlikon Corporation AG Business Overview & Revenue Model

Company Description

OC Oerlikon Corporation AG provides advanced materials, surface technologies, processing equipment, and services worldwide. The company operates through two segments, Surface Solutions and Polymer Processing Solutions. The Surface Solutions segment supplies advanced materials and surface technologies for components and tools used in range of industrial applications. The Polymer Processing Solutions segment offers solutions and systems used to manufacture manmade fibers that enable customers to produce synthetic fibers under the Oerlikon Barmag, Oerlikon Neumag, Oerlikon HRSflow, and Oerlikon Nonwoven bands. It also provides friction and wear, corrosion, electrical and thermal effects, electromagnetic effects, dimensional control, and other functional solutions; thermal spray equipment; system platforms; thermal spray coating services; laser cladding; brazing, pack diffusion, conductive fillers, metal or ceramic injection molding, additive manufacturing, laser cladding, plasma transferred arc, and weld hardfacing; and consulting, engineering, life cycle management, and smart plant solutions. The company serves clients in aerospace, automotive, energy, tooling, general, additive manufacturing, manmade fibers, and medical industries. OC Oerlikon Corporation AG was founded in 1907 and is headquartered in Pfäffikon, Switzerland.

How the Company Makes Money

OC Oerlikon generates revenue through multiple streams, primarily by providing high-value industrial solutions and services. Key revenue streams include the sale of equipment and systems for manmade fiber production, surface coatings, and advanced materials. The company also earns income from service contracts and maintenance agreements, which are crucial for ongoing customer relationships and long-term revenue stability. Strategic partnerships with leading manufacturers and investments in research and development allow OC Oerlikon to continuously innovate and expand its product portfolio, driving profitability. Additionally, global demand for sustainable and high-performance materials enhances its market position and revenue potential.

OC Oerlikon Corporation AG Financial Statement Overview

Summary

Mixed-to-weak fundamentals: the company moved to a net loss in 2025 alongside a sharp revenue decline (-21.3%), while leverage increased materially (debt-to-equity ~1.88x). The main offset is continued positive operating cash flow and improved free cash flow in 2025.

Income Statement

Profitability has deteriorated materially: the latest annual period (2025) posted a net loss (-1.2% net margin) after positive earnings in 2024–2020. Revenue has been weak for several years and sharply down in 2025 (-21.3% growth), signaling demand and/or pricing pressure. A positive offset is that gross margin held up (~27.9%) and EBITDA margin remained mid-teens (~16.5%), suggesting the core business still generates operating earnings, but not enough to cover below-the-line costs in 2025.

Balance Sheet

Leverage is the key concern. Total debt rose to ~1.72B in 2025 and debt-to-equity increased to ~1.88x (up from ~1.35x in 2024 and ~0.74x in 2022), reducing financial flexibility. Equity declined versus prior years and returns to shareholders turned negative in 2025 (negative return on equity), consistent with the net loss. While total assets are relatively stable, the higher leverage profile makes the balance sheet more vulnerable if earnings remain pressured.

Cash Flow

Cash generation is a relative bright spot. Operating cash flow stayed positive in 2025 (~178M) and free cash flow improved to ~104M, with strong free-cash-flow growth (+55% in 2025). However, cash flow has trended down versus 2024 (operating cash flow ~272M; free cash flow ~149M), and cash flow covers only a modest portion of debt (about 10% in 2025 based on the provided coverage ratio), implying deleveraging would take time without an earnings rebound.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.57B	2.37B	2.69B	2.91B	2.65B
Gross Profit	438.00M	647.00M	651.00M	731.00M	640.00M
EBITDA	258.00M	373.00M	334.00M	393.00M	451.00M
Net Income	-19.00M	66.00M	33.00M	89.00M	164.00M
Balance Sheet
Total Assets	3.81B	4.00B	4.10B	4.09B	4.52B
Cash, Cash Equivalents and Short-Term Investments	239.00M	412.00M	541.00M	477.00M	619.00M
Total Debt	1.72B	1.51B	1.69B	947.00M	961.00M
Total Liabilities	2.88B	2.87B	3.06B	2.77B	3.05B
Stockholders Equity	912.00M	1.12B	1.01B	1.27B	1.42B
Cash Flow
Free Cash Flow	104.00M	149.00M	98.00M	90.00M	184.00M
Operating Cash Flow	178.00M	272.00M	181.00M	221.00M	315.00M
Investing Cash Flow	-90.00M	-86.00M	-504.00M	-155.00M	-419.00M
Financing Cash Flow	-19.00M	-324.00M	425.00M	-182.00M	266.00M

OC Oerlikon Corporation AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:OERL, the sentiment is Positive. The current price of 3.98 is above the 20-day moving average (MA) of 3.97, above the 50-day MA of 3.76, and above the 200-day MA of 3.36, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 29.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:OERL.

OC Oerlikon Corporation AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KARN	74 Outperform	CHF1.83B	15.74	―	2.17%	11.43%	6.46%
BUCN	73 Outperform	CHF3.71B	15.87	―	2.99%	-11.64%	-24.17%
SUN	65 Neutral	$5.48B	7.52	24.15%	2.90%	5.79%	13.20%
VACN	64 Neutral	CHF15.48B	53.97	32.09%	1.63%	19.22%	11.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
OERL	54 Neutral	CHF1.29B	-55.43	―	6.26%	-17.75%	83.94%
GF	49 Neutral	CHF3.50B	42.66	―	2.53%	-24.42%	32.48%

OC Oerlikon Corporation AG Corporate Events

Oerlikon Completes Pure-Play Shift as Surface Technologies Orders Climb

OC Oerlikon has completed its strategic transformation into a pure-play surface technologies and advanced materials group with the sale of its Barmag subsidiary to Rieter in early February 2026, a transaction that will generate a substantial book gain and be used to strengthen the balance sheet and reward shareholders. The shift caps a decade-long move away from a diversified industrial conglomerate toward a focused, globally integrated coatings and materials platform.

For 2025, the group reported resilient performance in a weak macroeconomic and geopolitical environment, with order intake rising 6.5% at constant exchange rates and sales essentially flat in organic terms, as strength in aerospace and energy offset softness in automotive, tooling, general industry and luxury goods. Profitability declined, with the operational EBITDA margin slipping to 17.3% due to mix and currency effects and one-off charges from portfolio streamlining in automotive and luxury, but management is executing structural cost reductions that are expected to support margin expansion once markets recover.

The company’s divestment proceeds will be allocated to debt reduction, general corporate purposes and a proposed total dividend of CHF 0.85 per share, including a sizeable special payout that partially returns transaction gains to investors. Oerlikon forecasts low single-digit organic sales growth at constant exchange rates and an operational EBITDA margin around 17.5% in 2026, banking on innovation, pricing discipline and efficiency measures to mitigate persisting end-market and geopolitical headwinds.

The most recent analyst rating on (CH:OERL) stock is a Hold with a CHF4.00 price target. To see the full list of analyst forecasts on OC Oerlikon Corporation AG stock, see the CH:OERL Stock Forecast page.

Oerlikon Completes Barmag Sale, Finalising Shift to Pure-Play Surface Technology

Oerlikon has completed the sale of its Barmag business unit to Rieter for an enterprise value of CHF 850 million, marking the final step in its strategic shift into a pure-play surface technology company. The proceeds will be used to reduce financial liabilities, fund general corporate purposes and potentially return capital to shareholders, while the move sharpens Oerlikon’s brand and customer positioning as it pursues growth in key end-markets and expands applications and regional presence, particularly in Asia and the Americas.

The most recent analyst rating on (CH:OERL) stock is a Hold with a CHF4.00 price target. To see the full list of analyst forecasts on OC Oerlikon Corporation AG stock, see the CH:OERL Stock Forecast page.

Oerlikon Clears Final Hurdle to Sell Barmag, Completing Shift to Pure‑Play Surface Technologies

Oerlikon has obtained all regulatory approvals for the sale of its Barmag business unit to textile machinery maker Rieter, with closing scheduled for early February 2026 at an enterprise value of CHF 850 million, excluding a potential earn‑out of up to CHF 100 million. The divestment marks the final step in Oerlikon’s strategic transformation into a pure‑play surface technology company, with proceeds earmarked for debt reduction and general corporate purposes, and will see Barmag CEO Georg Stausberg leave Oerlikon’s executive committee to join Rieter’s. After completion, Oerlikon will focus exclusively on expanding its surface technologies and advanced materials franchise across key end markets from automotive and aerospace to semiconductors, leveraging its strong brands and technology portfolio to reinforce its position as a global market and technology leader.

The most recent analyst rating on (CH:OERL) stock is a Buy with a CHF3.70 price target. To see the full list of analyst forecasts on OC Oerlikon Corporation AG stock, see the CH:OERL Stock Forecast page.