Datwyler delivers strong Healthcare growth and advances its transformation

Datwyler generated net revenue of CHF 582.7 million in the first half of 2026, up from CHF 563.0 million in the prior-year period, representing an organic growth of 4.6%. Division Healthcare continued its positive momentum, while Division Industrial remained affected by subdued end-markets and additional headwinds stemming from the conflict in the Middle East. Demand in the Food & Beverage market developed in line with expectations. Following its consolidation in February 2026, the integration of Capsul’in has progressed according to plan. The acquisition resulted in a net cash outflow of CHF 42.5 million during the first half of the year and, together with the dividend payment, led to the expected temporary increase in net debt and net working capital compared with year-end 2025.

EBIT increased to CHF 75.7 million (prior year: CHF 68.9 million), with the EBIT margin improving to 13.0% from 12.2% in the prior-year period, reflecting operational improvements in line with the company’s strategy and transformation. At the same time, Datwyler continued to invest consistently in innovation, the expansion of its commercial capabilities, and the development of new growth platforms. As a result, expenditure on Research & Development and Sales & Marketing increased to CHF 44.9 million (prior year: CHF 38.4 million), representing 7.7% of revenue compared with 6.8% in the prior-year period.

Division Healthcare: Strong momentum and well-positioned for growth in key markets

Division Healthcare generated revenue of CHF 242.8 million in the first half of 2026, compared with CHF 236.8 million in the prior-year period. Growth was primarily driven by the continued ramp-up of new customer projects and higher volumes in existing applications, partly offset by adverse currency effects. EBIT increased to CHF 50.8 million (prior year: CHF 40.1 million), with the EBIT margin improving to 20.9% from 16.9%. This strong performance was driven by a higher share of high-value product solutions, improved capacity utilization, successful pricing initiatives, and a positive one-time effect from realigning the production network. These gains more than offset temporary start-up costs related to new commercial customer programs and higher aluminum prices resulting from the conflict in the Middle East.

Datwyler has started the supply of components for a leading GLP-1 weight-loss medication from its FirstLine® manufacturing site in Middletown, USA. Demand also increased for NeoFlex™ spray-coated plungers, which are particularly well suited for biologics, prefilled syringes, and homecare applications. During the first half of the year, the division further expanded its portfolio of advanced, fit-for-purpose materials with the launch of the industry’s first universal 20 ml spray-coated plunger. This completes Datwyler’s offering for large-volume injectable therapies, with solutions for 5 ml, 10 ml, and 20 ml applications, while addressing the evolving requirements of on-body drug delivery systems.

Division Industrial: Transformation progresses while end markets remain challenging

Division Industrial generated revenue of CHF 342.4 million in the first half of 2026, compared with CHF 329.3 million in the prior-year period. EBIT amounted to CHF 24.9 million (prior year: CHF 28.8 million). Demand in the core industrial and automotive end markets remained subdued, reflecting ongoing trade tensions and continued weak investment activity. As a result, the EBIT margin declined to 7.3% from 8.7% in the prior-year period. In this environment, profitability was temporarily impacted by continued investments in organic growth and changes to the portfolio.

The Transportation & Electronics business unit continued to expand its portfolio of high-value applications while strengthening its position in the vehicle platforms of Chinese OEMs and expanding its presence in adjacent mobility markets. The General Industry business unit secured new customer projects in the aerospace and medical technology sectors, with initial revenue contributions already visible. Datwyler also advanced new opportunities for sealing solutions for data center liquid cooling systems, with attractive revenue contributions expected in the medium term due to long development cycles. In the business unit Food & Beverage, execution remained on track, supported by continued strong demand for aluminum coffee capsules.

Transformation program ForwardNow reaches the halfway point of implementation

The first phase of the ForwardNow program centered on optimizing the production footprint, streamlining the product range, and implementing organizational changes. During the first half of 2026, Datwyler reached key milestones, including the decision to consolidate General Industry’s three U.S. sites into a new facility in Houston by beginning of 2027. In Healthcare, the North American manufacturing network was further optimized to meet the future requirements of its end markets.

The second phase will accelerate the transformation of the business portfolio and standardize core processes. As strategic product lines gain share and new projects in structurally growing end markets ramp up, the earnings contribution from ForwardNow is expected to increase progressively. Datwyler remains on track to achieve its targets of approximately CHF 52 million in cumulative one-off benefits by the end of 2027 and a sustainable annual profitability improvement of around CHF 24 million from 2028 onwards.

Outlook

Despite ongoing geopolitical and trade policy uncertainties, Datwyler expects to continue gradually increasing revenue and profitability. Its strong market positions, targeted investments in innovation and growth, and the disciplined execution of the ForwardNow transformation program provide a solid foundation for further progress and support the achievement of the communicated mid-term financial targets.

In Division Healthcare, the continued shift toward higher-value products, rising capacity utilization, and the ramp-up of customer programs are expected to further support growth and profitability. In Division Industrial, profitability is expected to improve compared with the first half of the year, as profit protection measures take effect and additional production capacity in Food & Beverage supports growth in high-tech sealing solutions for highly regulated food applications.