Sulzer AG (CH:SUN)
:SUN
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Sulzer AG
(SUN)
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Rating:65Neutral
Price Target:
CHF160.00
▼(-3.03% Downside)
Action:DowngradedDate:03/01/26
The score is driven primarily by improving profitability and a generally positive outlook for 2026 margin expansion, tempered by choppy cash generation and still-meaningful leverage. Technicals are mixed (longer-term uptrend but short-term weakness), while valuation is reasonable with a moderate dividend yield. Earnings call risks (Chemtech downturn, FX headwinds, and project timing uncertainty) cap the upside to the overall score.
Positive Factors
Margin expansion and profitability recovery
Sustained EBITDA margin expansion reflects operational improvements and pricing/efficiency gains that are durable across cycles. Higher margins and record EBITDA increase earnings stability, fund reinvestment and dividends, and support improved ROCE and long-term cash generation potential.
Negative Factors
Meaningful leverage and choppy cash generation
Leverage near parity with equity limits financial flexibility for an industrial capital cycle. Coupled with volatile free cash flow and only moderate operating cash coverage versus debt, this constrains capacity to absorb prolonged downturns and raises refinancing and investment risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion and profitability recovery
Sustained EBITDA margin expansion reflects operational improvements and pricing/efficiency gains that are durable across cycles. Higher margins and record EBITDA increase earnings stability, fund reinvestment and dividends, and support improved ROCE and long-term cash generation potential.
Read all positive factors
Sulzer AG (SUN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF5.01B
Dividend Yield2.9%
Average Volume (3M)40.88K
Price to Earnings (P/E)17.0
Beta (1Y)1.05
Revenue Growth0.70%
EPS Growth12.20%
CountryCH
Employees13,455
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)3.90
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
CHF181.00Price Target Upside9.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)9.87
Revenue Forecast (FY)CHF3.60B
Sulzer AG Business Overview & Revenue Model
Company Description
Sulzer Ltd provides fluid engineering services. The company operates through Flow Equipment, Services, Chemtech, and Others segments. It offers side-mounted horizontal and top-mounted vertical agitators, dynamic chemical mixers, and tower and tank...
How the Company Makes Money
Sulzer makes money primarily by selling engineered equipment and systems and by providing aftermarket services for installed equipment. A major revenue stream is the supply of pumps and related fluid-handling equipment, including engineered-to-ord...
Sulzer AG Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: record profitability, margin expansion, EPS growth, strong performance in Flow and Services, improved capital metrics, and an increased dividend. However, meaningful headwinds remain — notably a sharp Chemtech revenue decline, substantial FX losses, delayed large projects shifting into 2026 (creating H1/H2 timing risk), and Chemtech-driven cash flow weakness. Management expects continued execution of operational excellence and a stronger H2, but near-term visibility is limited.Positive Updates
Record Profitability and EBITDA
Reported record EBITDA of CHF 556 million (would be close to ~CHF 600 million excluding CHF 40 million negative FX impact). EBITDA margin reached ~15.6%, and management guided further margin expansion to ~16.5% in 2026.
Negative Updates
Chemtech Weakness and Sales Decline
Chemtech sales fell sharply (management cited a 13.6% sales decline) and EBITDA margin fell by ~2 percentage points. Market overcapacity (notably refining in China) and weak chemical-industry sentiment constrained results.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Profitability and EBITDA
Reported record EBITDA of CHF 556 million (would be close to ~CHF 600 million excluding CHF 40 million negative FX impact). EBITDA margin reached ~15.6%, and management guided further margin expansion to ~16.5% in 2026.
Read all positive updates
Company Guidance
Sulzer guided 2026 order intake growth of 1–5%, sales growth of 2–5% and an improved EBITDA margin of about 16.5%, flagging a muted H1 and stronger H2 (noting a Q1 order-intake base of roughly CHF 1.0bn and ~80% of large 2025 projects shifted into 2026); the guidance is conservative despite a healthy book-to-bill of 1.06 and a growing pipeline, and it explicitly factors FX headwinds (≈CHF 190m negative on orders/sales and ≈CHF 40m on EBITDA). This outlook builds on 2025’s results (record EBITDA CHF 556m — ~15.6% margin, which would have been ~CHF 600m ex-FX — EPS +19% y/y, ROCE +140bp, Q4 order intake +12% y/y), expects continued strength from Services (aftermarket ~62% of turnover) and Flow (sales +12.3%, Flow EBITDA 13.3%, energy >20% sales growth), anticipates Chemtech to improve in 2026 but not fully recover to 2024 levels, and sits alongside a proposed dividend of CHF 4.75 (+CHF 0.50) with a ~50% payout ratio; liquidity and leverage remain robust (cash ≈CHF 640m, net debt ≈CHF 555m, net debt/EBITDA ~1.0x).Sulzer AG Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.56B | 3.53B | 3.28B | 3.18B | 3.16B |
| Gross Profit | 1.22B | 1.18B | 1.08B | 939.60M | 946.90M |
| EBITDA | 563.40M | 503.00M | 440.00M | 250.10M | 355.40M |
| Net Income | 292.80M | 261.90M | 229.10M | 28.60M | 1.42B |
Balance Sheet | |||||
| Total Assets | 4.62B | 4.71B | 4.37B | 4.70B | 5.08B |
| Cash, Cash Equivalents and Short-Term Investments | 927.40M | 1.06B | 977.00M | 1.21B | 1.53B |
| Total Debt | 1.28B | 1.16B | 1.15B | 1.47B | 1.63B |
| Total Liabilities | 3.32B | 3.48B | 3.27B | 3.67B | 3.80B |
| Stockholders Equity | 1.29B | 1.22B | 1.10B | 1.02B | 1.27B |
Cash Flow | |||||
| Free Cash Flow | 213.00M | 231.40M | 296.60M | 49.50M | 230.30M |
| Operating Cash Flow | 303.00M | 323.80M | 362.20M | 119.30M | 316.40M |
| Investing Cash Flow | -101.00M | -98.20M | -104.80M | -87.80M | 414.50M |
| Financing Cash Flow | -290.10M | -151.60M | -448.60M | -286.30M | -365.20M |
Sulzer AG Technical Analysis
Positive
165.00
Price Trends
163.49
Positive
155.48
Positive
147.06
Positive
Market Momentum
1.23
Negative
54.78
Neutral
20.09
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 165 is above the 20-day moving average (MA) of 161.10, above the 50-day MA of 163.49, and above the 200-day MA of 147.06, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 54.78 is Neutral, neither overbought nor oversold. The STOCH value of 20.09 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | CHF2.15B | 54.72 | ― | 2.17% | 5.79% | -49.07% | |
73 Outperform | CHF3.16B | 15.87 | ― | 2.99% | -7.64% | 4.78% | |
65 Neutral | CHF5.01B | 16.99 | 24.15% | 2.90% | 0.70% | 12.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | CHF1.35B | 33.61 | ― | 1.46% | -2.46% | -11.13% | |
54 Neutral | CHF1.11B | -55.43 | ― | 6.26% | -33.90% | -128.93% | |
49 Neutral | CHF3.50B | 42.66 | ― | 2.53% | -22.94% | -51.88% |
* Industrials Sector Average
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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.