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Sulzer AG
(SUN)
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Rating:67Neutral
Price Target:
CHF165.00
▲(16.77% Upside)
Action:Reiterated
Date:07/29/26
The score is driven primarily by improving profitability and a solid technical uptrend (price above key moving averages). These positives are tempered by moderate leverage and choppy cash conversion, and by earnings-call risks centered on weaker order intake (especially Chemtech), working-capital-driven free-cash-flow pressure, and reliance on back-loaded large orders to meet guidance.
Positive Factors
Improving Profitability
Sustained margin expansion reflects structural improvements in pricing, cost control and operations. Higher EBITDA margin widens the buffer against cyclicality, supports reinvestment and debt service, and indicates lasting efficiency gains from Sulzer Excellence rather than a one-off uplift.
Negative Factors
Meaningful Leverage
Net leverage near parity with equity leaves limited balance-sheet flexibility for capital spending or cyclical downturns. For an industrial with volatile cash conversion, this level of debt increases refinancing and interest-rate sensitivity and constrains optionality for M&A or capital-intensive bids.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability
Sustained margin expansion reflects structural improvements in pricing, cost control and operations. Higher EBITDA margin widens the buffer against cyclicality, supports reinvestment and debt service, and indicates lasting efficiency gains from Sulzer Excellence rather than a one-off uplift.
Read all positive factors
Sulzer AG (SUN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF4.95B
Dividend Yield3.24%
Average Volume (3M)40.88K
Price to Earnings (P/E)16.3
Beta (1Y)0.98
Revenue Growth-2.55%
EPS Growth11.09%
CountryCH
Employees13,311
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)8.97
Shares Outstanding34,262,367
10 Day Avg. Volume37,888
30 Day Avg. Volume40,882
Financial Highlights & Ratios
PEG Ratio1.38
Price to Book (P/B)3.85
Price to Sales (P/S)1.40
P/FCF Ratio23.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF187.00Price Target Upside32.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)9.67
Revenue Forecast (FY)CHF3.57B
Sulzer AG Business Overview & Revenue Model
Company Description
Founded in 1834 and based in Winterthur, Switzerland, Sulzer Ltd specializes in providing advanced fluid engineering solutions globally. The company's operations are strategically organized into four segments: Flow Equipment, Services, Chemtech, a...
How the Company Makes Money
Sulzer makes money primarily by selling engineered industrial equipment and by providing aftermarket services over the installed life of that equipment.
Key revenue streams include:
1) Equipment/Systems sales (project and product revenue): Sulzer...
Sulzer AG Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Positive
The call presents a constructive operational and profitability story: strong margin expansion, Flow and Services regaining momentum, and clear execution of Sulzer Excellence and strategic initiatives. However, significant headwinds remain—primarily within Chemtech (large order delays in new technologies), elevated net working capital and free‑cash‑flow pressure, and geopolitical-related project timing risk. Management reiterated its full‑year guidance and expects orders to be back‑loaded into H2/Q4, indicating confidence but also execution risk tied to the timing of large awards.Positive Updates
Profitability Improvement
Group EBITDA margin increased to 15.5% in H1 (up ~110 basis points year-over-year compared with prior reporting), with higher absolute EBITDA and net income in CHF driven by better gross margins and Sulzer Excellence execution.
Negative Updates
Group Order Intake Decline
Group order intake fell -3.9% in H1 2026; management noted the miss was concentrated in a small absolute amount (<CHF 80 million) but included delayed/missed large project awards.
Read all updates
Q2-2026 Updates
Positive
Negative
Profitability Improvement
Group EBITDA margin increased to 15.5% in H1 (up ~110 basis points year-over-year compared with prior reporting), with higher absolute EBITDA and net income in CHF driven by better gross margins and Sulzer Excellence execution.
Read all positive updates
Company Guidance
Sulzer reiterated its February guidance: full‑year 2026 order intake growth of +1% to +5%, sales growth of +2% to +5% and an expected full‑year EBITDA margin of about 16.5%. At midyear the group reported H1 order intake -3.9% (a shortfall of <CHF80m), H1 sales roughly +1% (Flow +0.5%, Services +4.4%, Chemtech -4.9%), H1 EBITDA margin 15.5% (up 110 bps y/y) and an order‑intake margin of 35.7% (down 60 bps); book‑to‑bill is >1 across BUs except new technologies. Management flagged a ~CHF100–117m increase in net working capital (now ~26% of sales vs 22% prior), which reduced free cash flow (cash impact ~CHF40m), an anticipated low‑single‑digit restructuring charge for Chemtech in H2 plus an ~CHF8m impairment, and said large orders are expected to be back‑loaded (likely Q4) while they would not change guidance for a weak Q3.Sulzer AG Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.48B | 3.56B | 3.53B | 3.28B | 3.18B | 3.16B |
| Gross Profit | 1.22B | 1.22B | 1.18B | 1.08B | 939.60M | 946.90M |
| EBITDA | 565.10M | 563.40M | 503.00M | 440.00M | 250.10M | 355.40M |
| Net Income | 303.10M | 292.80M | 261.90M | 229.10M | 28.60M | 1.42B |
Balance Sheet | ||||||
| Total Assets | 4.72B | 4.62B | 4.71B | 4.37B | 4.70B | 5.08B |
| Cash, Cash Equivalents and Short-Term Investments | 843.30M | 927.40M | 1.06B | 977.00M | 1.21B | 1.53B |
| Total Debt | 1.20B | 1.19B | 1.16B | 1.15B | 1.47B | 1.63B |
| Total Liabilities | 3.40B | 3.32B | 3.48B | 3.27B | 3.67B | 3.80B |
| Stockholders Equity | 1.31B | 1.29B | 1.22B | 1.10B | 1.02B | 1.27B |
Cash Flow | ||||||
| Free Cash Flow | 183.70M | 213.00M | 231.40M | 296.60M | 49.50M | 230.30M |
| Operating Cash Flow | 280.30M | 303.00M | 323.80M | 362.20M | 119.30M | 316.40M |
| Investing Cash Flow | -107.90M | -101.00M | -98.20M | -104.80M | -87.80M | 414.50M |
| Financing Cash Flow | -259.70M | -290.10M | -151.60M | -448.60M | -286.30M | -365.20M |
Sulzer AG Technical Analysis
Positive
141.30
Price Trends
143.08
Positive
148.83
Positive
147.89
Positive
Market Momentum
1.59
Negative
62.74
Neutral
62.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SUN, the sentiment is Positive. The current price of 141.3 is below the 20-day moving average (MA) of 142.32, below the 50-day MA of 143.08, and below the 200-day MA of 147.89, indicating a bullish trend. The MACD of 1.59 indicates Negative momentum. The RSI at 62.74 is Neutral, neither overbought nor oversold. The STOCH value of 62.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SUN.
Sulzer AG Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | CHF3.10B | 17.42 | ― | 2.04% | -4.06% | -17.81% | |
67 Neutral | CHF4.95B | 16.32 | 24.15% | 3.36% | -2.55% | 11.09% | |
67 Neutral | CHF1.84B | 70.39 | ― | 2.54% | 2.60% | -65.24% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | CHF1.12B | 21.40 | ― | 2.46% | 1.72% | -9.57% | |
57 Neutral | CHF1.54B | -45.98 | ― | 17.71% | -33.90% | -128.93% | |
52 Neutral | CHF4.24B | -31.55 | ― | 2.58% | -20.47% | -148.37% |
* Industrials Sector Average
CH:SUN
Sulzer AG
151.30
-0.11
-0.07%
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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.