Cicor Grows Double-Digit Again and Creates Strong Foundation for Further Expansion

Estimated reading time: 7 minutes

In the first half of 2025, Cicor Group took a significant step towards its ambition of becoming the pan-European leader in its chosen markets as announced in the strategy 2028, expanding market presence into France and Spain. Net sales reached CHF 280.7 million, an increase of 21.4% to the previous year (CHF 231.3 million). With increased momentum in the second quarter, Cicor achieved a positive book-to-bill rate of 1.02 in the reporting period, compared to 0.87 in H1 2024. Underlying profitability developed positively with an EBITDA margin of 11.2% (H1 2024: 10.7%) when excluding the effects from the Éolane France integration. Cicor generated a strong underlying Free Cash Flow of CHF 18.5 million – excluding acquisitions and before integration of Éolane France.

Sales growth of 21.4% was primarily driven by acquisitions, which contributed 24.8% to growth. The further appreciation of the Swiss Franc had a negative impact of -1.4%. Organic growth was positive in Q2; however, for the full first half year, organic growth was -2.1% mainly due to the Advanced Substrates (AS) division. The shift to positive organic growth and a positive book-to-bill rate in Q2 represent a notable development, especially against the backdrop of a persistently weak economic environment.

It is important to note that the distribution of sales across Cicor markets is significantly influenced by the timing of acquisitions: Profectus contributed for the entire 6 month period and is primarily active in industrial applications. Éolane France and Mercury, both with a high share of aerospace & defence (A&D) business, contributed with only 2 months and around 1 month, respectively, to the H1 results. MADES, with its strong A&D exposure, will contribute only for a few months during the second half of 2025. Closing is subject to regulatory approvals. On a pro-forma basis, including all transactions and assuming full 2025 sales from acquisitions, Cicor expects 36% of sales to the industrial sector, 28% to A&D and 19% to healthcare technology. In H1, due to M&A timing, reported sales were 42% to industrial, 22% to A&D and 21% to healthcare technology.

Effective 22 April 2025, Cicor acquired seven Éolane France sites out of bankruptcy (5 in France and 2 in Morocco) adding 890 employees and CHF 125 million in annualised sales to Cicor's strategic markets and establishing a strong footprint in France and Morocco. This acquisition represents a unique opportunity to create value. Despite the complexity of the transaction, all sites remained operational and maintained positive labour relations from day one. Supplier shortages were largely resolved by the end of June, and fiscal and social overdue debts were fully paid by early June. Cicor has achieved full transparency by implementing financial and operational reporting to Cicor standards, providing a solid baseline for performance improvement.

Due to the nature of acquiring Éolane France out of bankruptcy, Cicor's investment is only partially reported as purchase price, with other elements reflected in Free Cash Flow and operating profits. Cicor paid a purchase price of CHF 7.3 million and recorded transaction costs of CHF 2.5 million, while the business included CHF 3.7 million in cash, resulting in a net cash outflow of CHF 6.2 million at closing. Rebuilding net working capital, settling open claims, and managing the transition led to a negative Free Cash Flow of CHF -9.1 million and a negative EBITDA of CHF -2.5 million. In total, Cicor has invested CHF 15.3 million to acquire and integrate the business. As Cicor acquired CHF 23.2 million of assets from Éolane France, a negative goodwill of CHF 12.9 million was recorded and offset against equity. Integration is progressing well according to Cicor’s M&A playbook, with the focus now on progressively improving profitability to Cicor levels.

Reconciliation of the impact of the Eolane acquisition

To make reported financial results more easily comparable with previous year and to identify the effects from the Éolane transaction, an illustrative table is shown below:

The integration of Éolane resulted in a negative EBITDA contribution of CHF -2.5 million, mainly due to ramp-up and other non-recurring effects, while we expect a neutral EBITDA contribution from the Éolane business in the second half of 2025. EBITDA for Cicor Group excluding Éolane increased 17.0% to CHF 28.9 million (HY 2024: CHF 24.7 million), while reported EBITDA reached CHF 26.5 million, an increase of 7.0% over the previous year (CHF 24.7 million).

EBIT increased by 1.9% to CHF 15.4 million (HY 2024: CHF 15.1 million), while the EBIT-margin decreased from 6.5% in HY 2024 to 5.5% in HY 2025 as the integration of Éolane resulted in a margin dilution. The delta between EBITDA and EBIT margins includes 2.5% of sales for depreciation of fixed assets and 1.4% of sales for the amortisation of intangible assets, mainly from business combinations.

Cicor continued to manage net working capital effectively during the reporting period, contributing to a positive underlying Free Cash Flow of CHF 18.5 million (before acquisitions and excluding the Éolane France acquisition) compared to CHF 21.1 million in the previous year.

While net interest expenses were reduced during the first semester of 2025, the strong appreciation of the Swiss Franc against most trading currencies resulted in a significant negative FX result, compared to a positive result during H1 of 2024 when the Swiss Franc had devalued. The recorded non-cash FX losses (as the FX gains in H1 2024) are non-taxable, leading to a higher tax rate. Consequentially, reported Net Profit in the reporting period was CHF 8.5 million (including negative one-offs from the Éolane France integration) compared to CHF 11.9 million in the previous year.

Cicor started in 2025 to allocate corporate costs to the operating entities to better align cost generation and reporting. That reporting change resulted in the reported Corporate EBITDA during HY 2025 of CHF -0.4 million compared to previous HY result of CHF -2.8 million. The reported segment results are reduced by a corresponding amount – 85 basis points should be added to HY 2025 segment EBITDA margin for comparability with HY 2024.

EMS Division – growing rapidly

The Electronic Manufacturing Services Division has achieved further milestones towards pan-European leadership in its chosen markets of aerospace & defence, healthcare technology and industrial. Net sales of the division increased by 26.2% driven by acquisitions, reaching CHF 263.1 million (HY 2024: CHF 208.5 million).

Underlying profitability of the EMS Division amounted to an EBITDA margin of 11.1% (excluding Éolane France integration) reflecting the shift in corporate cost allocations (HY 2024 EBITDA margin: 11.6%). As a result from the measures taken, reported EBITDA including all effects reached CHF 24.3 million (HY 2024: CHF 24.1 million).

The integration of Profectus Solutions (Suhl, Germany) in January 2025 and of the Geneva (Switzerland) production site of Mercury International in June 2025 is progressing as expected, while the acquisition of MADES (Malaga, Spain), signed in April 2025, remains subject to government approvals and is expected to close during Q3 2025. Together with the Éolane France acquisition, Cicor has further expanded its available markets and scalability for future growth.

As a true pan-European provider of engineering and manufacturing services for electronics in mission-critical applications, Cicor has established a unique strategic position and strong USP that attracts new customers. As a result, Cicor is engaged in multiple large programs with existing and new customers that are expected to drive organic growth in the coming months and years.

AS Division – Robust performance despite reduced sales

The results of the Advanced Substrates division are marked by sharp inventory reduction measures of the two largest customers from the healthcare technology sector. Reported sales of the division consequentially decreased by 19.3% to CHF 19.3 million (HY 2024: CHF 23.9 million). Both the printed circuit board (PCB) and the hybrid substrate operations were affected by lower sales.

Operating performance remained robust following the successful implementation of a multi-year excellence programme in PCB manufacturing at the Boudry (Switzerland) site and the closure of the Backnang (Germany) site for hybrid substrate manufacturing. These measures helped protect the operating margin at the EBITDA level, which was only slightly reduced – considering the shift of corporate cost allocations – to 13.3% (HY 2024: 14.4%). Reported EBITDA reached CHF 2.6 million (HY 2024: CHF 3.4 million).

The consolidation of hybrid substrate production at Cicor's Wangs (Switzerland) site is proceeding as planned, and the transfer of production from Ulm (Germany) will be completed during Q3. The division is thus well prepared for the future and can increase operating margins overproportionately when sales levels normalise.

Outlook for the Full Year 2025

Cicor has made major strategic progress, positioning the company as the pan-European leader in aerospace & defence electronics and establishing the scale and footprint that significantly increase its attractiveness to customers across all addressed market verticals. The pipeline of new customers and projects combined with the positive book-to-bill rate in Q2, lead Cicor to expect a return to healthy organic growth in the second half of 2025. Progress in integrating recently acquired businesses will further support net sales and margin growth.

Based on currently available information, and provided there are no significant changes in the economic and geopolitical environment or exchange rates, Cicor expects annual sales for 2025 to be between CHF 620 and 650 million and EBITDA of CHF 64 to 72 million, excluding the effects from the Éolane integration in the first half of 2025 of CHF -2.5 million. Including all effects, EBITDA is expected to be CHF 62 to 70 million.

The Board of Directors and Management of Cicor will continue to pursue their strategy of expanding the company’s position as a leading European provider of development and manufacturing services for high-end electronics in the healthcare technology, industrial electronics, and aerospace & defence segments. With this approach, Cicor aims to achieve above-average growth rates in net sales, operating income, and earnings per share in the future as well.