EMS Chemie Holding AG reported a rise in operating profit for the first half of the year, attributing gains to demand for higher-margin specialty applications that helped offset the effects of a stronger Swiss franc.
First-half results
For the six months ended June 30, operating income (EBIT) increased to CHF 310 million from CHF 296 million in the year-ago period, a 4.7% uplift that pushed the EBIT margin to 30.6% from 29.1%. Net sales in Swiss franc terms edged down 0.8% to CHF 1.01 billion from CHF 1.02 billion, though when measured in local currencies the company reported a 4.5% increase.
Earnings before interest, taxes, depreciation and amortisation rose 3.9% to CHF 336 million, with the EBITDA margin widening to 33.2% from 31.7%.
Operational environment and cost management
EMS said it navigated a challenging mix of external factors during the period, including inconsistent U.S. trade policy, escalating conflict in the Middle East and substantial appreciation of the Swiss franc. The company also noted higher raw material costs and implemented what it described as "unavoidable sales price adjustments" in response.
On the U.S. market, EMS stated that products sold there are produced almost entirely locally or qualify as "important specialties" that are exempt from U.S. customs duties. The company also said it has no business relations in the Middle East.
Demand drivers
EMS highlighted demand for metal-replacement and energy-saving solutions as a principal driver of profitability, describing these applications as "particularly of high demand" in the current environment. The company additionally identified electric vehicles, robotics and data centres as emerging areas of growth.
Outlook and shareholder returns
For the full year 2026, EMS said it is slightly raising its net sales forecast. However, it still expects full-year revenue to be slightly below 2025 levels due to currency effects. Full-year operating income is projected to be slightly above the prior year, a view that remains unchanged from earlier guidance.
The board plans to propose a total dividend of CHF 18.40 per share at the annual general meeting on Aug. 8, composed of an ordinary dividend of CHF 14.65 and an extraordinary dividend of CHF 3.75. That proposed payout compares with CHF 17.25 per share paid a year earlier.
Takeaway
EMS posted modest profit growth and margin expansion in the first half, with niche, high-margin product lines supporting results despite currency pressure and geopolitical and trade-related uncertainties. The company has nudged up its sales outlook for 2026, kept operating income guidance essentially steady, and will seek shareholder approval for a higher dividend.