Orrick's Q4 orders exceeded expectations, Barmag sale boosts earnings

Investing.com – OC Oerlikon Corporation AG (SWX:OERL) announced its Q4 2025 results on Tuesday, with orders exceeding analyst expectations. The company also reported that gains from the Barmag asset divestment were higher than anticipated.

The Swiss industrial group reported Q4 orders of CHF 433 million and sales of CHF 401 million, representing a 12% and 2% increase over market consensus, respectively.

Q4 orders grew organically by 16.8% year-over-year, compared to a market expectation of 5%, with an order-to-sales ratio of 1.08. Revenue grew organically by 2% year-over-year, while market consensus expected it to remain flat.

For the full year 2025, Oerlikon reported orders of CHF 1.655 billion, sales of CHF 1.568 billion, and an operating EBITDA of CHF 271 million.

These figures exceeded market expectations for orders by 3%, while sales were in line with forecasts. Operating EBITDA was 1% higher than expected. Full-year organic order growth was 7%, while revenue declined slightly by 0.3% organically.

The company stated that revenue was supported by the aerospace and energy sectors, especially the gas turbine business, which offset weakness in the automotive, general industrial, and luxury goods markets. Oerlikon noted a weak economic environment, particularly in Europe.

Excluding contributions from Barmag, full-year 2025 operating EBITDA was CHF 271 million, down 11% year-over-year but surpassing the market consensus of CHF 269 million.

The operating EBITDA margin reached 17.3%, slightly above the market expectation of 17.2%. This margin was affected by negative structural effects, including a decline in service business and foreign exchange impacts.

Reported EBITDA was CHF 232 million, below the expected CHF 237 million, indicating higher one-time expenses. Full-year 2025 net profit was a loss of CHF 14 million, impacted by one-time costs related to the automotive internal combustion engine business and luxury goods segment.

Oerlikon announced that the sale of Barmag will generate a book gain of CHF 287 million in 2026, exceeding the previous estimate of CHF 210 million. The company confirmed that approximately CHF 850 million from asset divestments (after costs) will be used to repay debt, fund general corporate purposes, and distribute to shareholders.

The board of directors proposed a dividend of CHF 0.85 per share, consisting of CHF 0.20 regular dividend and CHF 0.65 one-time dividend. This amounts to a total cash payout of CHF 288 million, covering all proceeds from the Barmag divestment, with a dividend yield of 22%.

For the full year 2026, Oerlikon expects organic sales growth in the low single digits at a fixed exchange rate, in line with market consensus of 3% to 4% organic growth.

The company anticipates an operating EBITDA margin of approximately 17.5%, up 20 basis points year-over-year, supported by innovation, pricing, and efficiency measures. Market consensus expects 17.6%.

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