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1. Company Snapshot

1.a. 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 flow management products; tower management systems; turbo compressors, aeration systems, and mechanical aerators; cartridges, mixers, dispensers, and accessories; process solutions, which include the initial concept and pilot testing; medium consistency products; pumping solutions and auxiliary equipment; and control and monitoring equipment.


The company also provides lifting stations; pump and lifting station accessories; products for distillation, absorption, stripping, evaporation, phase separation, liquid-liquid extraction, and crystallization; static and submersible mixers; solids reduction, separation, and removal systems; and screening, sedimentation, and filtration solutions.In addition, its services include rotating equipment services; static equipment services, welding, plant maintenance, and turnaround project services.Further, the company digital solution, which includes control and monitoring software solutions that include a range of software primarily designed to simplify set-up and maintenance for web-based alarm handling and monitoring software; sense condition monitoring solutions, which detects possible equipment failures early on and optimizes maintenance planning.; PumpsOnline services that allow access to equipment-related information; BLUE BOX, a collaborative digital solution; and DOC BOX, which allows users to systematically identify the root cause of a problem.


It serves oil and gas; chemical; general industry; water; power; adhesive, dental, and healthcare; and beauty markets.The company operates in Switzerland, the United Kingdom, Saudi Arabia, Germany, Spain, Sweden, the Americas, and the Asia Pacific.Sulzer Ltd was founded in 1834 and is headquartered in Winterthur, Switzerland.

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1.b. Last Insights on SUN

Sulzer Ltd's recent momentum is fueled by record EBITDA and robust sales growth, as reported in its Full Year 2025 earnings call. The company has successfully navigated project delays and FX headwinds, underscoring its resilience. With a strong financial foundation, Sulzer is poised to capitalize on emerging opportunities, driven by its diversified portfolio and strategic initiatives, setting the stage for sustained growth and profitability.

1.c. Company Highlights

2. Sulzer's 2025 Earnings Report: Strong Performance Amidst Volatility

Sulzer reported record sales, order intake, and profit for 2025, with earnings per share rising 19% to CHF 3.9, below estimates of CHF 4.67. Sales grew with commercial discipline, increasing margins and profitability figures significantly. EBITDA reached a record CHF 556 million, despite a negative FX impact of around CHF 40 million. The return on capital employed increased by 140 basis points, demonstrating the company's ability to generate strong returns on its capital.

Publication Date: Mar -01

📋 Highlights
  • Record Financial Performance: Sulzer achieved record sales, order intake, and profit in 2025, with EBITDA reaching CHF 556 million, a 19% increase in earnings per share, and a 140 basis points rise in return on capital employed.
  • Strong Divisional Growth: The Flow division drove double-digit sales growth (12.3% increase) and a 160 basis points improvement in EBITDA profitability, while Services hit a record 150 basis points profitability gain from operational investments.
  • Strategic Guidance for 2026: Sulzer anticipates 1-5% order intake growth and 2-5% sales growth in 2026, with EBITDA margin guidance of ~16.5%, driven by pricing power, cost measures, and momentum in energy, water, and chemical markets.
  • Aftermarket Resilience: The aftermarket business reached 62% of total sales, acting as a buffer against macroeconomic volatility, supported by investments in service centers and strong demand in maintenance and upgrades.
  • Carbon Capture & Water Treatment Leadership: Sulzer is the market leader in large-scale carbon capture projects, with growth expected in the U.S. and U.K., and a newly launched Global Center for water treatment to capitalize on clean water demand trends.

Financial Highlights

The company's financial performance was strong, with order intake growing 2.1% and sales increasing with commercial discipline. The Flow division showed excellent improvement in profitability and sales, with an 18% increase in Q4 compared to the prior year. Services achieved a record result in profitability, growing by 150 basis points, driven by operational excellence and investments in growth.

Segment Performance

The Flow division had a good development on the sales side and profitability, with a 12.3% double-digit sales increase and 160 basis points increase in EBITDA profitability. Chemtech faced challenges due to overcapacity in refining and weak market sentiment in the chemical industry, but achieved a reasonably good order intake in smaller projects and grew its aftermarket services share.

Valuation Metrics

With a P/E Ratio of 19.59, P/B Ratio of 4.44, and EV/EBITDA of 10.77, Sulzer's valuation appears reasonable. The company's Dividend Yield is 2.5%, and Free Cash Flow Yield is 3.71%. The ROIC is 12.05%, and ROE is 24.15%, indicating strong profitability. The Net Debt / EBITDA ratio is 0.62, suggesting a healthy debt position.

Outlook and Guidance

Sulzer expects solid order intake in 2026, with momentum expected to pick up in the second half of the year. The company guides order intake at 1% to 5%, sales at 2% to 5%, and EBITDA margin at about 16.5%. Analysts estimate next year's revenue growth at 4.7%. Thomas Zickler mentioned that while double-digit growth is an ambition, he would manage expectations and aim for mid-high single-digit growth over the next years.

Operational Excellence and Growth

Suzanne Thoma mentioned that there is a lot of headroom left for operational excellence, involving many small steps and continuous improvement. The company's Global Center for water treatment is expected to drive growth, and its new technologies are also expected to see an upwards trajectory in most regions.

3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.70%)

6. Segments

Flow Equipment

Expected Growth: 5%

Sulzer's Flow Equipment segment growth is driven by increasing demand for energy-efficient solutions, rising investments in water and wastewater treatment, and growing adoption of digitalization and automation in the oil and gas industry. Additionally, the company's strategic acquisitions and expansion into emerging markets contribute to its growth momentum.

Services

Expected Growth: 7%

Sulzer Ltd's 7% growth in services is driven by increasing demand for maintenance and repair services in the oil and gas industry, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digitalization and IoT-based solutions is enhancing its service offerings, leading to increased revenue.

Chemtech

Expected Growth: 5%

Chemtech from Sulzer Ltd's 5% growth is driven by increasing demand for sustainable chemical processing, expansion in emerging markets, and strategic partnerships. Additionally, investments in digitalization and automation, as well as a strong order backlog, contribute to the segment's growth momentum.

7. Detailed Products

Pumps

Sulzer's pumps are designed for efficient and reliable fluid handling in various industries, including oil and gas, water, and power generation.

Agitators

Sulzer's agitators are designed for mixing and blending applications in various industries, including chemical, pharmaceutical, and food processing.

Compressors

Sulzer's compressors are designed for efficient and reliable compression of gases in various industries, including oil and gas, chemical, and power generation.

Turbomachinery Services

Sulzer's turbomachinery services provide maintenance, repair, and upgrade solutions for turbomachinery equipment in various industries.

Applicator Systems

Sulzer's applicator systems are designed for applying coatings and surface treatments in various industries, including aerospace, automotive, and industrial manufacturing.

Mixing and Blending

Sulzer's mixing and blending solutions are designed for efficient and reliable mixing and blending applications in various industries, including chemical, pharmaceutical, and food processing.

Separation Technology

Sulzer's separation technology solutions are designed for efficient and reliable separation of fluids and gases in various industries, including oil and gas, chemical, and power generation.

8. Sulzer Ltd's Porter Forces

Forces Ranking

Threat Of Substitutes

Sulzer Ltd has a moderate threat of substitutes due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

Sulzer Ltd has a high bargaining power of customers due to the concentration of buyers in the market and the availability of alternative suppliers.

Bargaining Power Of Suppliers

Sulzer Ltd has a low bargaining power of suppliers due to the availability of multiple suppliers in the market and the company's ability to negotiate prices.

Threat Of New Entrants

Sulzer Ltd has a moderate threat of new entrants due to the moderate barriers to entry in the market and the availability of resources.

Intensity Of Rivalry

Sulzer Ltd operates in a highly competitive market with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.20%
Debt Cost 3.95%
Equity Weight 48.80%
Equity Cost 11.72%
WACC 7.74%
Leverage 104.91%

11. Quality Control: Sulzer Ltd passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bucher

A-Score: 5.6/10

Value: 4.1

Growth: 3.3

Quality: 6.2

Yield: 5.6

Momentum: 5.0

Volatility: 9.0

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Danieli

A-Score: 5.3/10

Value: 6.8

Growth: 3.4

Quality: 5.1

Yield: 1.9

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

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Cargotec

A-Score: 5.2/10

Value: 6.5

Growth: 6.0

Quality: 5.8

Yield: 6.2

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

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Sulzer

A-Score: 5.1/10

Value: 4.0

Growth: 3.9

Quality: 6.0

Yield: 6.2

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Trelleborg

A-Score: 4.6/10

Value: 3.5

Growth: 5.8

Quality: 6.4

Yield: 4.4

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

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Aalberts

A-Score: 4.0/10

Value: 4.4

Growth: 3.9

Quality: 4.0

Yield: 5.6

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

170.1$

Current Price

170.1$

Potential

-0.00%

Expected Cash-Flows