Introduction & Market Context
Bucher Industries AG (SIX:BUCN) reported its first quarter 2025 results on April 29, showing early signs of recovery in some markets despite continued challenges. The Swiss industrial equipment manufacturer saw its shares rise 1.58% to CHF 348 following the presentation, as investors responded positively to increased order intake figures and signs of stabilization across several business segments.
The company, which specializes in agricultural machinery, municipal vehicles, hydraulic systems, glass container manufacturing equipment, and specialized machinery, has been navigating a challenging market environment characterized by reduced demand in agricultural sectors and varying performance across its divisions.
Quarterly Performance Highlights
Bucher Industries reported a 2.8% increase in order intake to CHF 705 million for Q1 2025 compared to the same period last year, signaling potential recovery in some markets. However, net sales declined by 8.6% to CHF 783 million, while the order book decreased by 21.8% to CHF 1,095 million. The company has also reduced its workforce, with average full-time equivalents (FTEs) down 6.4% to 13,752.
As shown in the following chart of Bucher’s Q1 2025 performance metrics:
For the full year 2025, Bucher expects stable sales on a comparable basis. The company also announced the planned sale of a property, which is expected to increase the operating profit margin by 1.4 percentage points. Excluding this divestment, the operating profit margin is anticipated to remain at the prior-year level.
Divisional Performance Analysis
Kuhn Group: Agricultural Recovery Signs
The Kuhn Group, Bucher’s agricultural equipment division, showed encouraging signs of recovery with order intake increasing by 21.2% to CHF 232 million in Q1 2025. However, net sales declined by 11.2% to CHF 316 million, and the order book decreased by 22.3% to CHF 378 million compared to Q1 2024. The division reduced its workforce by 9.5% to 5,284 FTEs.
The division’s performance reflects improving investment confidence in the agricultural sector:
Bucher Municipal: Continued Growth
Bucher Municipal, which manufactures vehicles for cleaning and clearing operations, continued its positive trajectory with a 5.4% increase in net sales to CHF 147 million, despite a slight 1.1% decrease in order intake to CHF 148 million. The division’s order book decreased by 6.3% to CHF 296 million, while employee numbers remained relatively stable with a 0.6% increase to 2,521 FTEs.
The division’s performance demonstrates strength in municipal markets:
Bucher Hydraulics: Recovery in Order Intake
Bucher Hydraulics reported a 10.0% increase in order intake to CHF 166 million, though net sales decreased by 12.2% to CHF 163 million. The division’s order book declined by 21.5% to CHF 155 million, and the workforce was reduced by 5.9% to 2,909 FTEs.
The hydraulics division shows signs of recovery in certain segments:
Bucher Emhart Glass: Significant Challenges
Bucher Emhart Glass, which specializes in glass container manufacturing equipment, faced the most significant challenges among all divisions. Order intake decreased by 31.8% to CHF 77 million, while net sales declined by 9.0% to CHF 113 million. The division’s order book saw a substantial 45.1% reduction to CHF 156 million, and the workforce was reduced by 7.1% to 1,544 FTEs.
The glass manufacturing equipment division continues to face market headwinds:
Bucher Specials: Mixed Performance
Bucher Specials, which encompasses various specialized machinery businesses, reported a slight 0.4% decrease in order intake to CHF 95 million and a 15.0% decline in net sales to CHF 62 million. The division’s order book decreased by 9.1% to CHF 130 million, and the workforce was reduced by 6.7% to 1,426 FTEs.
The specialized machinery division shows varied performance across its business units:
Financial Position and Shareholder Returns
Bucher Industries maintains a strong financial position, enabling the company to continue its consistent dividend policy. The company announced a share buyback program of up to 410,000 shares, scheduled to begin on May 5, 2025, citing its solid financial position and expected continued strong cash generation.
The company’s dividend history demonstrates a commitment to shareholder returns:
Looking at full-year 2024 results, which provide context for the current quarter, Bucher achieved a solid operating profit margin of 9.0% despite declining volumes. The company implemented cost-saving measures, including a 4.3% reduction in its workforce, primarily in Europe and Brazil.
The following chart illustrates the company’s cost-saving measures and profitability:
Forward-Looking Statements
Bucher Industries’ outlook for 2025 varies by division:
- Kuhn Group expects stable sales and an operating profit margin in the region of the 2024 level.
- Bucher Municipal anticipates stable sales with a further increase in operating profit margin.
- Bucher Hydraulics forecasts slight sales growth and a slightly higher operating profit margin.
- Bucher Emhart Glass expects significantly lower sales and operating profit margin compared to 2024.
- Bucher Specials projects sales growth and a higher operating profit margin due to improved capacity utilization and efficiency measures.
The company continues to invest in innovation, with research and development costs representing 4.4% of net sales in 2024. Bucher is also making progress on sustainability initiatives, having reduced CO2 emissions by 14.5% in 2024 and setting a new emission reduction target of 25% by 2028 for Scope 1 and 2 emissions.
In terms of leadership, Bucher has announced a long-term succession plan for the CEO position, with Matthias Kummerle set to take over the role in the future.
Overall, while Bucher Industries continues to face challenges in certain markets, particularly in the agricultural and glass manufacturing sectors, the first quarter of 2025 shows early signs of recovery with increased order intake across several divisions. The company’s solid financial position and consistent dividend policy provide stability as it navigates the varying market conditions across its diverse business segments.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.