S&P Global Ratings has changed its view on Omnia Technologies, shifting the outlook to negative from stable while affirming the company's long-term rating at 'B'. The agency pointed to a slower-than-expected pace of deleveraging as the driver of the outlook change.
S&P estimates Omnia's debt-to-EBITDA ratio remained above 7.0x in 2025, an improvement from 10.3x in 2024 but still weak relative to the rating. The agency now expects the ratio will approach 6.0x in 2026, a delay of one year from its earlier projection.
The revision follows downward adjustments to S&P's revenue and EBITDA forecasts for 2025-2026. While S&P notes that volumes are growing and profitability is improving, those gains are unfolding more slowly than previously assumed.
Free operating cash flow (FOCF) is estimated to have remained negative in 2025, at nearly
FOCF for 2025 was nearly
S&P now anticipates Omnia's 2025 revenue at roughly
Some orders were shifted into 2026 and the expected revenue contribution from acquisitions was reduced. Omnia completed four acquisitions with an expected revenue contribution of about in contrast to the six acquisitions and roughly previously forecast by S&P.
For 2026-2027, S&P expects annual revenue growth of 3%-4%, projecting revenue of in 2026 and exceeding in 2027. The agency said this growth should be supported by backlog clarity and deeper penetration into the Life Science and other segments.
Margins have shown improvement on a pro forma basis. Company-estimated pro forma EBITDA margins rose to 12.6% for the 12 months ended September 30, 2025, up from 11.2% in fiscal 2024. S&P forecasts adjusted EBITDA to increase to to in 2026 from an estimated for 2025.
Looking at cash flow dynamics, S&P estimated Omnia's FOCF in 2025 at a negative figure of nearly as a result of higher capital spending than expected. The agency expects FOCF to turn positive to about in 2026, rising above from 2027 as earnings strengthen and capital expenditure requirements lessen.
The move to a negative outlook signals that S&P views the company as having less cushion around its current rating. The agency noted there is a possibility of a downgrade within the next 12 months if Omnia's deleveraging progresses more slowly than projected or if weak free cash flow persists.
Note: This article presents S&P Global Ratings' estimates and forecasts as reported and does not add new figures or events beyond those provided.