Mid-year report 2025: GF well on track

(Figures in brackets, unless otherwise stated, refer to the same period in the previous year. 2024 figures have been restated to reflect organizational changes and thereby be comparable with 2025 figures: Building Technology was transferred from GF Industry and Infrastructure Flow Solutions (formerly GF Piping Systems) to GF Building Flow Solutions, while Uponor Infrastructure was moved from GF Building Flow Solutions to GF Industry and Infrastructure Flow Solutions.)
 

Andreas Müller, GF CEO, says:
"The first half of 2025 marked a significant step forward in GF’s strategic transformation toward becoming the global leader in Flow Solutions for Industry, Infrastructure, and Buildings, with the divestment of GF Machining Solutions and the acquisition of metal valve specialist VAG-Group. Our Flow Solutions divisions enjoyed good momentum particularly in the industrial sectors in Asia and the US, as well as in infrastructure markets across Europe, underscoring the resilience of this business despite market uncertainties.”

In the first half of 2025, GF’s Flow Solutions businesses achieved a solid performance, particularly in the European infrastructure business area, despite persistent geopolitical tensions, a strong Swiss franc and continued softness in construction activity. The US tariff-related uncertainty in the European industrial markets persisted. GF’s strong market position, innovation-driven portfolio and balanced presence worldwide across Infrastructure, Industry and Buildings enabled the company to stay resilient and capture opportunities in a turbulent market environment.

GF’s transformation into a pure-play global leader in Flow Solutions accelerated in the first half of 2025 through key strategic milestones.

In May 2025, GF signed an agreement to acquire the VAG-Group, a leading manufacturer of metal valves for water utilities headquartered in Mannheim (Germany). The transaction strengthens GF’s Infrastructure offering with mission-critical metal valve technology and VAG’s deep expertise in urban infrastructure applications. The transaction also broadens GF’s reach in key markets, particularly Europe and the Middle East. Closing is expected in the second half of 2025.

On 30 June 2025, GF completed the divestment of GF Machining Solutions to the Swiss-based United Grinding Group. The agreed purchase price on a cash and debt-free basis was CHF 630 million. The transaction resulted in a significant one-time book gain of CHF 140 million, and the related cash flow was used to repay acquisition-related bank debt and thereby further strengthen the GF Corporation’s balance sheet. Annual sales to be carved out from GF amounted to CHF 885 million in 2024. Approximately 3’300 employees and production sites in eight locations across Europe, Asia and the US have been transferred to the buyer as part of the transaction.

GF Casting Solutions’ divestment process is well advanced.

The successful integration of the former Uponor operations, along with the value creation program initiated after the 2023 acquisition, continues to enhance GF’s ability to serve customers with greater efficiency and breadth. The organizational structure has been further streamlined, including adjustments to the production footprint. A compelling combined product portfolio is now in place, alongside the establishment of a global procurement organization—both of which contribute to improved efficiency and business momentum. Commercial synergies and scale across the product portfolio continued to take effect, with initial results materializing in the US and Europe. The value creation program is expected to deliver annual synergies of CHF 40–50 million at full run rate by 2027, with CHF 14 million in additional EBIT already realized by the end of June 2025.

GF continued to make strong progress toward its sustainability objectives. These include increasing the share of its portfolio consisting of products with social or environmental benefits, reducing Scope 1 and 2 CO₂e emissions, and further lowering unrecycled waste and water intensity. In 2024, GF expanded its carbon-neutral operations to five additional locations — Vaasa (Finland), Fristad (Sweden), Çerkezköy (Turkey), Hassfurt LHD (Germany), and Apple Valley, CA (US) — bringing the total number of carbon-neutral operations to 11. GF’s commitment to sustainability was also recognized by leading organizations such as CDP (Carbon Disclosure Project), the Financial Times and Time magazine.

Solid performance of the Flow Solutions businesses

GF’s Flow Solutions businesses customer order intake reached CHF 1’511 (1’487) million and sales amounted to CHF 1’507 (1’553) million. Organically, customer order intake grew by 5% and sales were on par with the previous year’s level.

In Europe, the infrastructure business saw healthy development, while industrial segments and the building sector, particularly in new housing, remained sluggish. In the US, despite a declining construction market, demand for GF’s flow solutions for buildings remained solid. Additionally, the industrial sector in both the US and Asia showed solid development. Currency effects negatively affected sales by CHF 46 million.

GF’s Flow Solutions businesses comparable operating result (EBIT) excluding items affecting comparability reached CHF 156 (182) million, with a comparable EBIT margin of 10.4% (11.7%). Reported operating result (EBIT) stood at CHF 144 (162) million, with an EBIT margin of 9.5% (10.4%). Comparable operating result before depreciation and amortization (EBITDA) reached CHF 208 (235) million and reported EBITDA reached CHF 196 (215) million.

At the end of June 2025, GF employed 12’128 (12’188) people in its Flow Solutions businesses.

GF Industry and Infrastructure Flow Solutions (formerly GF Piping Systems)

GF’s Industry and Infrastructure Flow Solutions customer order intake reached CHF 942 (902) million and sales amounted to CHF 960 (974) million. Organically, customer order intake increased by 7.4% and sales increased by 1.6%. Customer order intake and sales were supported by strong momentum in the infrastructure sector in Europe, along with solid demand in the Middle East and Northeast Asia. Tariff-induced uncertainties caused hesitation among industrial customers, delaying investment decisions and negatively impacting demand. While semiconductor-related sales were lower in the first half of the year due to fewer active projects, the project pipeline remains quite healthy. Lower capital good investments impacted demand in various industrial sub-segments. In contrast, demand for data center cooling solutions increased substantially.

The division’s comparable EBIT stood at CHF 110 (133) million, resulting in a comparable EBIT margin of 11.5% (13.7%). Reported EBIT was CHF 108 (127) million, with an EBIT margin of 11.3% (13.1%). Currency movements had a negative impact of CHF 6 million on the division’s EBIT. Profitability was adversely affected by the product mix. However, this was partly mitigated by cost-saving measures and progress in the value creation program.

GF’s solid focus on innovation continues to set benchmarks in design and functionality, delivering on its commitment to providing Excellence in Flow. The first half of 2025 saw the launch of key innovations for mission-critical industrial applications, among which includes the new IR-225M infrared welding machine, designed for safe and easy installation and the Quick Connect Valve, which addresses the needs of our customers for sustainable, clean and lightweight liquid cooling connections for data centers.

GF Building Flow Solutions

GF Building Flow Solutions achieved sales of CHF 586 (621) million. Organically, sales decreased by 2.8%. Excluding the discontinued product lines resulting from the closure of two plants, sales organically declined 1.6%. North America sales were flat despite declining construction markets, persistently high mortgage rates and ongoing tariff uncertainty. Sales in Europe were impacted by mixed demand across construction markets, with signs of stabilization in the DACH region and in Eastern Europe. 

Excluding items affecting comparability, comparable EBIT amounted to CHF 57 (57) million, with a comparable EBIT margin of 9.7% (9.2%). Reported EBIT was CHF 47 (43) million, with an EBIT margin of 8.0% (6.9%). Currency movements had a negative impact of CHF 3 million on the division’s EBIT. Operating margin development was supported by cost-saving initiatives and the value creation program.

Integration work with targeted refinements to the new business model continued. A clear highlight was the unveiling of the combined offering and key innovations at ISH, the leading European plumbing trade fair held in Frankfurt (Germany) in March 2025, positioning GF as a one-stop partner for comprehensive integrated flow solutions for buildings worldwide. Among the standout innovations was the Uponor I-Shower, an eco-friendly digital shower system that received both the German Innovation Award 2025 and the iF Design Award 2025.

GF’s new combined product offerings enhance market relevance and open doors to new customer segments. A key example is the extension of the Uponor AquaPEX product line with ChlorFIT®, an innovation developed from GF’s industrial product range, which now enables the delivery of complete domestic water solutions for commercial buildings in North America. One of the first large-scale piping projects to use this combined solution is the Waterline development featuring the tallest residential tower in Austin, TX (US).

GF Casting Solutions

GF Casting Solutions’ sales amounted to CHF 388 (462) million. Sales development reflected continued weakness in the automotive sector, while demand was solid in the aerospace segment. Die-casting lifetime orders came in at CHF 369 (493) million, supported by a well-balanced customer portfolio and solutions for propulsion-independent components.

The division’s comparable EBIT stood at CHF 19 (41) million, resulting in a comparable EBIT margin of 4.9% (8.8%). Items affecting comparability amounted to CHF 3 million. Reported EBIT was CHF 16 (41) million, with an EBIT margin of 4.0% (8.8%). The construction of the new die-casting facility in Augusta, GA (US), proceeded according to plan and initial equipment was installed.

GF Machining Solutions (divested on 30 June 2025)

GF Machining Solutions’ sales reached CHF 360 (392) million. Comparable EBIT was CHF -6 (2) million, with a comparable EBIT margin of -1.6% (0.5%). Reported EBIT was CHF -10 (-0) million, with an EBIT margin of -2.9% (-0.1%).

Consolidated financial results

Consolidated GF Corporation sales reached CHF 2’255 (2’407) million. EBIT amounted to CHF 272 (194) million and net profit attributable to shareholders of GF was CHF 160 (97) million. EBIT was impacted by subdued demand, especially in GF Casting Solutions and GF Machining Solutions, as well as by non-recurring costs associated to strategic initiatives. However, EBIT still significantly exceeded the previous year’s level, supported by a net positive one-off effect of CHF 140 million related to the divestment of GF Machining Solutions.

Free cash flow before acquisitions reached CHF -57 (-40) million, including the impact of acquisition financing costs with a cash effect in the range of CHF 15 million. In May 2025, GF raised a total of CHF 400 million on the Swiss debt capital market at attractive conditions. Financing costs will decrease significantly following the company’s successful refinancing through corporate bonds and the completed divestment of GF Machining Solutions.

At the end of June, the GF Corporation employed 15’755 (19’425) people.

Changes in the Executive Committee

Effective 1 June 2025, Thomas Hary took over as President of GF Industry and Infrastructure Flow Solutions (formerly GF Piping Systems). He succeeds Andreas Müller, who held the role on an interim basis alongside his duties as CEO. Thomas Hary joined GF in 2005 and has held leadership roles across several GF divisions. Most recently, he headed the Business Unit Industry/Utility at GF Piping Systems, after serving as divisional CFO from 2019 to 2023.

2025 outlook for the Flow Solutions business

In line with the company’s strategic transformation, GF’s guidance on the outlook for 2025 applies only to its Flow Solutions businesses.

Despite ongoing global challenges, GF’s balanced presence worldwide and across Infrastructure, Industry and Buildings markets enhances its resilience in today’s mixed market environment, and enables the company to capture opportunities across a broad spectrum of applications. GF is well-positioned to benefit from long-term trends, including the growing project pipeline in the semiconductor industry, rising adoption of liquid cooling technologies for data centers, continued investment in sustainable water infrastructure — such as advanced stormwater systems and safe drinking water solutions in buildings and urban areas — as well as growing demand for energy-efficient buildings and critical industrial systems requiring reliable fluid transport.

Barring unforeseen adverse events and assuming an easing of geopolitical tensions, GF confirms its guidance for the year 2025, and expects flat to lower single-digit organic growth and profitability before items affecting comparability in the range of 10.5-12.5% for the EBIT margin, 13.5-15.5% for the EBITDA margin and 20-24% for ROIC.
 

Important dates

4 November 2025: Capital Markets Day 2025 for analysts/media in Schaffhausen (Switzerland)
 

For further information please contact

Beat Römer, Head Corporate Communications
+41 (0) 79 290 04 00, media@georgfischer.com

Christoph Ladner, Investor Relations
+41 (0) 52 547 13 50, ir@georgfischer.com

GF uses certain key figures to measure its performance that are not defined by Swiss GAAP FER. As a result, their comparability with similar figures presented by other companies may be limited. Additional information on these key figures can be found at www.georgfischer.com/en/investors/alternative-performance-measures.html