EMS Chemie Lifts Sales Forecast on Strong Margins and Niche Demand

Swiss specialty chemicals manufacturer EMS Chemie Holding AG (SIX:EMSN) has raised its full-year sales forecast after reporting a 4.7% increase in first-half operating profit, citing robust demand for its specialty products and disciplined cost management that successfully widened margins.

First-Half Performance

According to a company announcement on Friday, operating income (EBIT) for the six months ending June 30 rose to CHF 310 million from CHF 296 million in the prior-year period. This performance lifted the company's EBIT margin to 30.6%, up from 29.1% a year earlier.

While net sales in Swiss francs dipped slightly by 0.8% to CHF 1.01 billion, they grew by 4.5% in local currencies, highlighting the significant impact of the strong franc. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) also climbed 3.9% to CHF 336 million, expanding the EBITDA margin to 33.2%.

Drivers and Outlook

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EMS Chemie attributed its profitability gains to strong demand for high-margin specialties, particularly in applications for metal replacement and energy saving. The company also identified electric vehicles, robotics, and data centers as key emerging growth areas. To combat higher raw material costs, the firm implemented what it termed "unavoidable sales price adjustments."

Despite navigating a difficult environment that included a strong Swiss franc and inconsistent U.S. trade policy, the company issued a more optimistic outlook. For the full year, EMS now expects net sales to be slightly higher than previously forecast, though still slightly below the 2025 level due to currency effects. The forecast for full-year operating income remains unchanged, projected to be slightly above the prior year.

Shareholder Returns

The company's board announced its intention to propose a total dividend of CHF 18.40 per share at its upcoming annual general meeting. This represents an increase from CHF 17.25 paid a year earlier and consists of a CHF 14.65 ordinary dividend and a CHF 3.75 extraordinary dividend.