GF Mid-Year Results 2026: Solid growth in challenging markets; raised sales outlook for 2026

Andreas Müller, GF CEO, says:

“GF’s Flow Solutions business delivered solid growth in a challenging environment, marked by geopolitical tensions and adverse weather in the first quarter. Our performance was driven by Infrastructure and Industry, while Buildings outperformed subdued construction markets. Focusing on execution, we implemented pricing measures in response to higher raw material costs and exceeded our Fit for Growth target, creating a leaner and more customer-centric organization. We also re-invested in strategic growth areas, including semiconductors and data centers.

In the second half of 2026, we expect an acceleration based on strong order intake in our semiconductor-related business and continued momentum in Infrastructure. Accordingly, we raise our 2026 sales outlook to mid-single-digit organic growth, with an unchanged comparable EBITDA margin of 14-16%.”

(Figures in brackets, unless otherwise stated, refer to the same period in the previous year.)

Improved momentum after challenging start to 2026

In the first half of 2026, GF’s Flow Solutions business generated a strong order intake of CHF 1’728 (1’511) million, in a challenging environment marked by adverse weather conditions, the Middle East conflict and continued subdued construction and industrial markets.

GF’s Flow Solutions business’ reported net sales of CHF 1’584 (1’507) million, up 5.7% organically. Acquired in October 2025, VAG contributed CHF 81 million to sales. In addition, sales were impacted by a stronger Swiss franc, in particular against the US dollar, with a negative impact of CHF 88 (46) million.

Following a weak start to the year mainly due to adverse weather conditions in Northern Europe and North America, GF’s Flow Solutions business accelerated from April onwards. Performance was supported by higher activity levels and price increases that materialized towards the end of the first half to offset rising raw material costs due to the war in the Middle East.

In the MENAT (Middle East, North Africa and Türkiye) region, which represents approximately 5% of Flow Solutions sales, GF adjusted its operations and offering to adapt to the volatile local environment following the outbreak of the war. The region grew organically by 4.5% in the first half, driven by sustained activity in Saudi Arabia and the country’s extensive multi-year investment program.

GF’s Flow Solutions business’ comparable EBITDA reached CHF 212 (208) million, with a comparable EBITDA margin of 13.4% (13.8%). Comparable EBIT reached CHF 158 (156) million, with a comparable EBIT margin of 10.0% (10.4%). The margin decline was driven by currency effects of CHF 20 million, an unbalanced production load over the quarters and cost inflation, partially offset by price increases and cost reduction measures. GF Flow Solutions equals the GF’s continuing business and therefore includes the loss from the divestment of GF Casting Solutions' automotive business.

Reported EBITDA was CHF 22 (196) million, with a reported EBITDA margin of 1.4% (13.0%) and reported EBIT was CHF -35 (144) million with a margin of -2.2% (9.5%).

GF Industry and Infrastructure Flow Solutions

In the first half of 2026, GF Industry and Infrastructure Flow Solutions generated order intake of CHF 1’095 (889) million. Net sales amounted to CHF 1’001 (921) million. Organically, net sales grew 6.1%, driven by strong demand in North America and Asian industrial markets, as well as continued investments in aging urban water infrastructure in Europe.

The division’s comparable EBITDA reached CHF 144 (137) million, resulting in a comparable EBITDA margin of 14.4% (14.9%). Reported EBITDA was CHF 137 (136) million, with a reported EBITDA margin of 13.7% (14.7%). Profitability was impacted by an unbalanced production load due to severe weather, cost inflation and negative currency effects, partially mitigated by price increases and cost savings.

Industry

GF’s Industry business supplies mission-critical fluid handling solutions for a broad range of end-markets, including water treatment, semiconductors, chemical processing, marine, life sciences and data centers globally.

Industry order intake grew significantly, reaching CHF 649 (545) million. Net sales amounted to CHF 555 (556) million, driven by solid demand in the US and many Asian markets, while market conditions in Europe and North Asia remained more subdued amid geopolitical uncertainties. While semiconductor-related sales remained stable in the first half of 2026, GF entered into several multi-year supply agreements with some of the largest customers in the semiconductor industry, securing a record level of committed orders for multiple fabs.

Infrastructure

GF’s Infrastructure business supplies integrated solutions for water infrastructure, including stormwater management, potable water, wastewater and gas distribution, as well as cables globally.

Infrastructure order intake developed positively year-on-year, reaching CHF 446 (344) million, including CHF 24 million from the approximately CHF 100 million order from Brazil’s Sabesp for the modernization of water distribution networks in São Paulo. Net sales amounted to CHF 446 (365) million, including CHF 81 million in sales contributed by VAG. Following a slow start to the year primarily due to adverse weather conditions, Northern, Central and Eastern Europe improved, driven by strong demand for water distribution solutions for aging networks, as well as stormwater management solutions for data center infrastructure. North America also gained momentum, with the gas distribution business performing strongly in the second quarter of the year. Key customer wins also included an order from SSAB to deliver a turnkey marine intake and onshore pipeline system for its new green steel plant in Luleå (Sweden).

The integration of VAG progressed, with a focus on strengthening the sales force and accelerating cross-sell opportunities, particularly into GF’s end-markets, by enhancing joint product management and technical sales capabilities.

GF Building Flow Solutions

GF’s Buildings business supplies reliable and efficient systems for water distribution as well as heating and cooling applications for residential and commercial markets, primarily in Europe and North America.

In the first half of 2026, GF Building Flow Solutions generated order intake of CHF 634 (622) million. Net sales were CHF 616 (630) million. Organically, sales rose by 3.3%.

After a slow start due to adverse weather conditions, North America and Northern Europe regained momentum in March, supported by inventory replenishment among distributors and selective pre-buying ahead of price increases. The new-build construction market in Switzerland remained solid and the Nordics improved, while the rest of Europe, including Germany, remained subdued despite signs of stabilization. In the refurbishment market, GF leveraged its market-leading indoor climate and heat-pump connection portfolio to drive growth.

GF Building Flow Solutions also advanced the simplification of its product range and customer mix to improve portfolio quality, supporting both margins and free cash flow generation.

Comparable EBITDA amounted to CHF 77 (79) million, with a comparable EBITDA margin of 12.6% (12.5%). Reported EBITDA was CHF 70 (69) million, with a reported EBITDA margin of 11.3% (10.9%). Currency movements had a negative impact of CHF 4 million on the division’s EBITDA. Operating margin development was supported by Fit for Growth and Value Creation Program cost savings.

Consolidated GF Group results

In the first half of 2026, consolidated GF Group net sales reached CHF 1’696 (2’255) million, including sales of CHF 41 (269) million from GF Casting Solutions’ automotive business, which was deconsolidated from 1 February 2026. VAG, acquired in October 2025, was consolidated for the full six-month period with sales of CHF 81 million. In the first half of 2025, GF Machining Solutions contributed CHF 360 million to GF Group’s net sales.

Comparable GF Group EBIT was CHF 164 (164) million, resulting in a comparable EBIT margin of 9.7% (7.3%). Reported EBIT was CHF -33 (272) million, including items affecting comparability of CHF 197 million, in particular a deconsolidation loss relating to GF Casting Solutions of CHF 172 million, of which the vast majority related to non-cash items such as the recycling of cumulative translation adjustments (CTA) and goodwill, as communicated in February 2026. Restructuring costs, including one-off costs relating to the Fit for Growth program, amounted to CHF 19 million in the first half.

Net financial result for the GF Group amounted to CHF -12 (-52) million. The net profit attributable to shareholders of GF was CHF -77 (160) million, significantly affected by the above-mentioned deconsolidation loss, while the prior-year result included the book gain relating to the divestment of GF Machining Solutions.

Free cash flow before divestments for GF Group reached CHF 35 (-57) million, driven primarily by EBITDA, a working capital outflow of CHF 145 million due to seasonal patterns and elevated accounts receivable due to strong business activity in June, cash outflow from capital expenditure of CHF 59 million, as well as proceeds from the sale of real estate in Biel (Switzerland). Including the net cash flows from divestments, free cash flow reached CHF 130 (484) million.

GF Group net debt decreased to CHF 1’619 million (as of 31 December 2025: CHF 1’684 million), implying a leverage ratio (net debt to EBITDA) of 4.0x (as defined by lending banks for applicable covenants). The proceeds of approximately CHF 220 million in cash from the announced divestment of the aerospace and industrial gas turbine business will be fully allocated to debt reduction post-closing, resulting in an expected net debt to EBITDA ratio of around 2.4-2.8x at year-end. Further debt reduction measures, including inventory optimization, are expected to support free cash flow and improve cash generation.

At the end of June 2026, GF had 13’676 (15’755) employees, with the decrease being mainly attributable to the divestments and the Fit for Growth program.

Solid start to execution of Strategy 2030

The execution of Strategy 2030 progressed well, focusing on disciplined execution, product innovation and strategic growth areas to strengthen GF's market leadership across its business areas, complemented by cost reduction measures.

GF continues to realize commercial and cost synergies from the acquisitions of Uponor and VAG, particularly through purchasing savings. At mid-year, annual run-rate synergies amounted to CHF 35 million, compared to the target of CHF 40-50 million by 2027.

Cost reduction measures are on track: The Fit for Growth program, launched in late 2025, is being successfully executed and remains on track to exceed CHF 40 million of cost savings. At mid-year, the target was raised to CHF 60 million to further mitigate cost inflation and support strategic reinvestments. The program is focused on organizational rightsizing and simplification to drive customer proximity and performance.

Margin enhancement measures are being taken by streamlining product range and footprint, including the closure of production units in China, Malaysia and Oman, the exit from non-core activities such as marine-related services in the Nordics, and growing the sales force in high-margin segments and products.

A comprehensive net working capital reduction program is under way to reduce inventory levels and therefore sustainably improve free cash flow until year-end.

Focus on strategic growth areas

Across the business areas, GF is focusing its investments where a lead has been achieved or is possible. For example, in the semiconductor industry, which is gearing up for a strong upcycle and where GF doubled its order intake in the first half of the year, GF is well-positioned to capitalize on its unique capabilities as the leading innovation partner to the world’s largest semiconductor manufacturers. Having pioneered ultra-pure water conveyance several decades ago, GF continues to innovate with new solutions such as SYGEF Ultra to meet industry demand for the highest levels of water purity, and gain share of wallet by expanding into adjacent areas such as facility cooling.

For the data center end-market, where order intake doubled in the first half of the year, GF expanded its compelling offering of direct-to-chip liquid cooling (DLC) solutions for the server room. Innovations included an energy balancing valve for precise temperature control, and LiquidCore, which combines GF’s polymer piping, valves and instrumentation in prefabricated modules. With several proof-of-concepts ongoing and advanced discussions with hyperscalers and co-locators, GF continues to see polymer-based solutions gain traction in the market based on higher energy efficiency, speed of installation and lower total cost of ownership.

In Infrastructure, GF continued to enhance its market position as a one-stop solution provider following its acquisition of leading valve manufacturer VAG. Launched in late 2025, the Flowise DMA (District Metering Area) chamber integrates GF, Uponor, and VAG technologies with the latest generation of NeoFlow pressure control valves to enable more efficient water network management. As a result, GF has secured multiple large-sized orders, from Latin America to Europe, which will be partially expedited in the second half of the year.

In Buildings, energy-efficient heat pump installations are expected to grow strongly in Europe, and GF is well positioned to benefit from this trend with solutions such as its new Ecoflex VIP 2.0, which enables highly efficient heat pump connections, as well as its Smatrix intelligent indoor control platform.

In the US, GF also expanded its partnership with The Home Depot to strengthen its position in the repair and remodel (R&R) market, with a confirmed expansion to 100 stores by year-end.

2030 sustainability targets

In the first half of 2026, GF made further progress towards the key targets of its 2030 Sustainability Framework. The company increased the share of products with social and environmental benefits to 77% (76%) of net sales, reduced Scope 1 and 2 CO₂e emissions to 40 (42) kt, and improved workplace safety by lowering the LTIF rate to 2.5 (4.0) per million hours worked.

Successful divestment of GF Casting Solutions

With the fulfilment of all required regulatory approvals and other closing conditions, the divestment of GF Casting Solutions’ automotive business to Mexico-based Nemak S.A.B. de C.V. was successfully completed in February 2026. The provisional selling price included a payment of USD 216 million and deferred payments of up to USD 191 million due over a five-year period until early 2031. The cash proceeds were used to further reduce outstanding net debt.

On 6 July 2026, GF signed an agreement to divest its aerospace and industrial gas turbine operations, including the three sites in Novazzano and Stabio (Switzerland) and Arad (Romania), for approximately CHF 220 million in cash proceeds to US-based Consolidated Precision Products Corp. (CPP). Subject to customary closing conditions, the transaction is expected to be completed towards the end of 2026.

Raised sales outlook for 2026 for the Flow Solutions business

Thanks to the strong order intake, as well as the implementation of cost reductions and price increases, for its Flow Solutions business, GF expects, barring unforeseen circumstances, a mid-single-digit organic sales growth (previously low-single-digit) and an unchanged comparable EBITDA margin of 14-16%.

With favorable long-term megatrends, including water scarcity, rapid urbanization and AI-driven digitalization, GF is well positioned to deliver on its Strategy 2030 targets and drive sustainable value creation.

Important dates

3 March 2027: Annual Report 2026 and Full-Year 2026 results

21 April 2027: Annual Shareholders’ Meeting 2027

16 July 2027: Mid-Year 2027 results

CONTACTS

For the media
Marta Falconi, Chief Communications Officer
+41 (0) 76 467 43 55, media@georgfischer.com

Beat Römer, Media spokesperson
+41 (0) 79 290 04 00, media@georgfischer.com

For investors and research analysts
Anna Engvall, Head of Investor Relations and Chief Risk Officer
+41 (0) 76 795 68 71, ir@georgfischer.com

Forward-looking statements
This media release includes forward-looking information and statements as well as other statements concerning the outlook for our business. These statements are based on current expectations, estimates and projections about factors that may affect GF’s future performance, including global economic conditions and the economic conditions of the regions and industries that are major markets for GF. These expectations, estimates and projections are generally identifiable by statements containing words such as “anticipates,” “expects,” “estimates,” “intends,” “plans,” “targets,” “guidance,” or similar expressions.

However, there are many risks and uncertainties, many of which are beyond GF’s control, that could cause actual results to differ materially from the forward-looking information and statements made in this press release and which could affect our ability to achieve any or all of GF’s stated targets. These include, among others, business risks associated with the volatile global economic environment and political conditions, market acceptance of new products and services, changes in government regulations and currency exchange rates. Although GF believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.

Alternative performance measures
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