R&S Group shares declined after the company reported first-half 2026 results that fell short of analyst expectations and introduced narrower full-year sales guidance. The stock moved lower after the company disclosed softer-than-anticipated order intake and sales, together with revised assumptions about the timing of deliveries.
Results and consensus comparisons
Orders for the first half totaled CHF217 million, below the CHF240 million consensus. Net sales for the period were CHF179 million, compared with CHF199 million expected. Management said roughly CHF15-16 million of orders shifted out of the first half into July, which weighed on the reported orders figure. Deliveries that were expected in June also moved into July, reducing first-half sales.
Reported EBITDA amounted to CHF34 million, missing the CHF39 million consensus, which produced an EBITDA margin of 19.0% versus the 19.6% expected by analysts. The company reported a book-to-bill ratio of 1.2x. Backlog grew to CHF358 million from CHF326 million at the end of fiscal 2025.
Guidance and strategic mix effects
R&S Group set fiscal 2026 sales guidance at around CHF410-420 million and said it expects EBITDA margins to remain stable relative to the first half. Earlier, the company had guided for fiscal 2026 organic sales growth and indicated that EBITDA margins would sit at the lower end of its medium-term targets - sales growth of 8-12% and EBITDA margins of 19-21%.
Market consensus for fiscal 2026 stood at CHF431 million in sales and an adjusted EBITDA margin of 19.4%.
Management attributed part of the slower conversion of backlog into revenue to a rising share of power transformers in the order mix. Power transformers have longer production and delivery cycles than distribution transformers, and that longer cycle is extending the timeframe over which the backlog converts into revenue, particularly during 2026.
Market implications
The midpoint of the company’s sales guidance implies a mid-single-digit downside risk to consensus earnings expectations. The combination of weaker-than-expected orders, the timing shift of approximately CHF15-16 million of orders and later deliveries from June to July were cited as the principal contributors to the reported shortfalls in orders and sales for the first half.
Overall, the report highlights short-term timing and mix dynamics that have translated into a weaker near-term revenue and EBITDA profile versus consensus.