The fluid management specialist intends in particular to increase its Ebitda margin from 11.1% last year to more than 17% within 4 years. The stock closed up 1%.
The Sulzer conglomerate unveils its new medium-term roadmap on Monday during an investor day. By 2028, the fluid management specialist intends to increase its Ebitda margin from 11.1% last year to more than 17%. The return on invested capital must be more than 22%.
“The deployment of our strategy is fully funded and is already delivering results,” says CEO and President Suzanne Thoma, quoted in a press release.
The ambition for organic growth faster than that of the market is based on the three pillars of energy security and transition, natural resources and industrial processes.
Treasurer Thomas Zickler explained to AWP that the 2024 objectives remained in place, including an organic increase in order intake of 2 to 5%, for organic growth in turnover of 6 to 9%. The Ebita margin must increase towards 12%, or around 14% for its Ebitda equivalent.
Analysts welcome an ambitious marching order, likely to generate upward adjustments in the consensus. Vontobel emphasizes that the growth objective is part of a certain continuity, while that for profitability suggests an acceleration.
Faster than the market
“We want organic growth without new factories,” general director Suzanne Thoma said at a conference on Monday. “We are on the road on healthy and solid foundations”, as part of the group’s 2028 strategy.
The group intends to grow 1 to 2% faster than the market, emphasizing that growth in its main markets is increasing by 3 to 5% per year.
Among the expectations in the fields of biofuels or natural resources, Sulzer cites as an example its pump factory in Finland which has increased its production capacity worth 100 million francs in annual turnover, and a 93% reduction in processing time for the manufacture of a product.
On the stock market, Sulzer shares ended up 1.0% at 123.40 francs, going against the trend of an SPI down sharply by 0.9%.
