Adval Tech: Strong Order Intake Contrasts with Pressure on Earnings and Cash Flow

The Adval Tech Group won orders with a lifetime volume of CHF 156 million in the first half of 2026. At the same time, earnings and cash flow deteriorated due to a decline in sales, upfront costs for new projects and operational setbacks at two plants. The Swiss component manufacturer continues to expect a negative net result for the full year.

Total operating revenue fell by 3.2% year on year to CHF 76.9 million. Net sales declined by 5.8% to CHF 73.2 million. EBITDA amounted to CHF -0.2 million, compared with CHF 0.8 million in the previous year, while EBIT deteriorated from CHF -2.2 million to CHF -3.2 million. The company reported a net loss of CHF 4.6 million. Free cash flow showed a particularly sharp decline, falling from CHF 2.2 million to CHF -11.5 million. The equity ratio stood at 65.4% as of June 30.

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This was offset by significantly stronger order intake. Of the CHF 156 million in lifetime order volume, CHF 116 million was attributable to Automotive and CHF 40 million to MedTech. Adval Tech sees growth potential particularly in complex two-component plastic parts. In the automotive business, market conditions remained challenging, especially in Europe.

At the same time, the Group is continuing its transformation. Measures include lean production structures, digitalization, initial AI projects, additional automation, and the optimization of cost structures and the production network. The Grenchen site in Switzerland is being converted into a dedicated MedTech plant. Production of aluminum capsules for the consumer segment is scheduled to end there in September 2026, with the freed-up space to be used for a newly won major MedTech order. The Malaysia site is also set to increase its focus on MedTech.

After the reporting date, Adval Tech acquired the Swiss thermoforming business of the SFS Group in an asset deal effective July 7, 2026. The transaction is intended to expand the customer and product portfolio, particularly in the automotive segment, and strengthen the Niederwangen site.

The workforce declined from 1,003 full-time positions at the end of 2025 to 964 at the end of June 2026. The reductions were concentrated mainly in Germany, Hungary and Mexico. Adval Tech expects an improvement in operating earnings in the second half of the year. From 2027 onward, the Group is targeting growth in the high single-digit percentage range as well as a sustainable improvement in profitability and operating cash flow.

More information: www.advaltech.com

Adval Tech Holding AG, Niederwangen, Switzerland

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