Difficult conditions lead to significant decline in demand. One-time restructuring costs impact negative net result

• Declining order intake and net sales stabilized
• Adjusted operating result (EBIT) of CHF -47 million   
• New organizational structure and restructuring with annual savings of more than CHF 60 million and one-time costs of CHF 37 million
• Dividend of CHF 4.00 per class A registered share proposed

Zurich, February 27, 2025 – Throughout 2024, Bystronic faced economic uncertainties, a persistently weak economy and internal challenges, particularly in the implementation of full solutions. Sales were down considerably and despite savings, costs could not be covered, resulting in a loss. As the cost reduction measures introduced at the beginning of the year were insufficient, Bystronic launched a comprehensive action plan to ensure increased profitability in the long term and an optimized position as a full solutions provider. One-time costs related to the restructuring had an additional negative impact on earnings.

Domenico Iacovelli, CEO of Bystronic since July 2024, said, “2024 was characterized by economic uncertainty and internal challenges. With the necessary restructuring and reorganization, we have adapted to the new market reality and have already implemented a number of changes in the fourth quarter. The motivation of our employees, our strength in innovation and the positive effects of the transformation will strengthen Bystronic in the future.”

Order intake and sales
Bystronic recorded a 21% decline in order intake in 2024 of CHF 625 million (-19% at constant exchange rates). The market environment was challenging and the overall economic environment difficult. The decline in global production activity continued. The Purchasing Manager Indices (PMI) in key industrial markets have been under 50 since the fourth quarter of 2022, reflecting an ongoing contraction of economic activity. Our customers were correspondingly cautious.

The challenges in project execution and customer satisfaction impacted our market position. Customer were reserved about Bystronic’s full solutions offerings, which negatively impacted order intake. 

Bystronic’s 2024 sales were CHF 648 million, a decline of 30% (-28% at constant exchange rates). However, a strong base effect must be taken into account: the previous year’s sales were positively impacted by a high order backlog at the beginning of 2023.

Operating result and net result
Bystronic experienced an operating loss (EBIT) of CHF 84 million (2023: profit of CHF 54 million). This was due to overcapacity and a high percentage of fixed costs. Despite cost reduction measures, the company could not compensate for the drop in sales and was not in a position to achieve a positive operating result (EBIT).

To increase profitability in the long term, Bystronic launched a restructuring in September 2024. EBIT includes restructuring expenses and impairments of CHF 37 million, which are attributable to the cost reduction plan and had an additional negative impact on earnings. The adjusted operating result (EBIT) was CHF -47 million.

Bystronic closed the business year 2024 with a net result of CHF -68 million (2023: CHF +42 million).

Operating free cash flow and net working capital
Bystronic concentrated on the optimization of net working capital and achieved a slightly positive operating free cash flow of CHF 1.2 million despite the negative net result. Net working capital declined 36%, which is a disproportionately large reduction in relation to sales. As of December 31, 2024, the equity ratio was 69.2% (compared to 71% on the previous year’s reporting date) due to the reduction in net working capital.

Dividends
The Board of Directors is proposing for the April 22, 2025, Annual General Meeting, the distribution of a dividend of CHF 4.00 per class A registered share and of CHF 0.80 per class B registered share. In total, CHF 8 million will be distributed to shareholders. The proposal reflects the continued solid liquidity situation of the Group despite the loss and is in accordance with the dividend policy, which sets aside between one-third and one-half of the net result for distribution, taking into account the liquidity situation and the future needs of the Group.

New organization structure and restructuring
In September 2024, Bystronic committed to a comprehensive restructuring to position itself closer to the customer and to reduce its cost base. The regional organizational structure was replaced with a divisional structure, and the size of the Executive Board was reduced to four members. In addition to the already established Service Division, the competencies in machinery, automation and software were bundled into the Systems Division to better serve customers, strengthen the company’s position as a full solutions provider and to respond with more agility to market needs.

Additional restructuring measures relate to the increased use of synergies. Included in this is the merging of group functions and the consolidation of global operating structures.

The optimization of the overhead structure and the alignment of production capacities was widely communicated in 2024 and are now in implementation. At the location in Niederönz (Switzerland), 84 positions were made redundant at the end of the year. The closure of automation solutions production in Italy will largely be complete by the end of the first quarter in 2025. 

The structural changes led in total to a reduction of about 600 full time positions and annual savings of more than CHF 60 million, whereby about CHF 40 million will already make a positive contribution in 2025. These measures are intended to ensure profitability at all times throughout the economic cycles.

Outlook
2025 will be a transition year for Bystronic. The company expects the market environment to remain challenging, and in the first half of the year, order intake to be at the same level as in recent quarters. As of the third quarter, Bystronic expects to gain back market share. This will lead to increased sales in 2026.

Due to the low order backlog at the beginning of the year and the strength of the Swiss franc, Bystronic expects slightly lower sales, as well as another operating loss for the full year 2025. In total, the Group expects a weak beginning of the year and improvement over the course of the year.

Thanks to a proven strategy, the new divisional organizational structure, an optimized cost structure and the intact structural growth drivers, Bystronic sees itself solidly positioned for the future. It expects to achieve an average EBIT margin of 5 to 7% over the course of the economic cycles.

Conference
CEO Domenico Iacovelli and CFO Beat Neukom will present the results today, February 27, 2025, at 11:00 am (MET) in the Hotel Marriott in Zürich as a teleconference in English. The webcast is available here or under “Presentations” on our website. https://ir.bystronic.com/en/publications/presentations

To access the teleconference:
Switzerland / Europe: +41 58 310 50 00
United Kingdom: +44 207 107 06 13
United States: +1 631 570 5613

Appendix
The complete 2024 Annual Report is available for download on our website:
ir.bystronic.com/en/publications/financial-reports

Media release (PDF)

For queries:

Chief Financial Officer
Beat Neukom           
Mobile +41 62 956 40 79        
investor@bystronic.com

Media Relations
Michael Präger
Mobile +41 79 870 01 43
michael.praeger@bystronic.com

About Bystronic
Bystronic (SIX: BYS) is a leading global technology company in the field of sheet metal processing. The focus is on the automation of the complete material and data flow of the cutting and bending process chain. The intelligent networking of laser cutting systems and press brakes based on innovative automation, software, and service solutions is key to achieving the comprehensive digitalization of the sheet metal processing industry.

Disclaimer
This media release has been published in English and German. Should the English translation differ from the German original, the wording of the German version shall prevail. This media release contains forward-looking statements, which are subject to uncertainty and risks. Actual future results may differ materially from those expressed in or implied by these statements. Some of these uncertainties and risks relate to factors that are beyond Bystronic’s ability to control or predict precisely, such as, in particular, future market conditions, currency fluctuations, or the behavior of other market participants, suppliers, and transport companies, as well as possible effects of the war in Ukraine and the associated sanctions. Readers are cautioned not to put undue reliance on forward-looking statements, since these relate only to the date of this communication. Bystronic disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other factors.

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