Avolta published its financial results for the first quarter of 2026 on Thursday, reporting a core turnover of 2,905 million Swiss francs. That figure represents a year-over-year decline of approximately 5% from the 3,050 million francs recorded in the equivalent quarter of 2025 and was in line with market expectations, where consensus sat at 2,921 million francs.
Organic growth for the quarter was reported at 4.7%. When the company excluded the effect of disruptions in the Middle East, organic growth rose to 5.9%. This pace was slightly below the 5.3% organic expansion posted in the first quarter of 2025 but outperformed the 4.5% organic growth figure anticipated by analysts.
Avolta highlighted an 8.8% foreign exchange headwind on sales for the quarter. Inorganic activity added a modest 0.7% to top-line growth.
On profitability, core EBITDA narrowed to around 190 million francs, a year-over-year decline of about 3%. At constant exchange rates, however, core EBITDA showed an 8.4% increase. The company reported a core EBITDA margin of roughly 6.6%, up from 6.4% in Q1 2025. The reported core EBITDA was effectively in line with consensus estimates, which were cited at 192 million francs.
Cash flow from operating activities on a core equity free cash flow basis moved further into negative territory in the quarter, at negative 164 million francs compared with negative 104 million francs in the prior-year period. Avolta attributed the deterioration to normal first-quarter seasonality and working capital phasing related to new operations in Shanghai Pudong, which accounted for 50 million francs of the outflow. The company noted that the reported free cash flow figure was consistent with the consensus expectation of negative 165 million francs.
Regional breakdowns of organic growth were provided: 2.5% in EMEA, 17% in APAC, 6.9% in LATAM and 3.9% in North America.
Balance-sheet metrics showed financial net debt of 2,724 million francs, corresponding to a leverage ratio of 2.1 times. That compares with a 2.2 times leverage ratio reported in the first quarter of 2025.
Despite the near-term headwinds reflected in the top line and cash flow seasonality, Avolta reiterated its mid-term guidance for fiscal 2027. The company continues to target annual organic core turnover growth of 5% to 7%, an improvement in the core EBITDA margin of 20 to 40 basis points per year, and an uplift in core equity free cash flow of 100 to 150 basis points per year, all measured at constant currency.
This release presents a mixed operational picture: reported revenue declined versus the prior year while organic growth excluding specific regional impacts held above consensus; reported profitability was slightly lower on a headline basis but improved on a constant-currency basis; and free cash flow was affected by expected seasonal patterns and the timing of working capital for new operations in Shanghai Pudong.