Ascom improves its operational performance in the first half of 2025
MWN-AI** Summary
Ascom, headquartered in Baar, Switzerland, reported an improved operational performance during the first half of 2025, as highlighted in their recent ad hoc announcement. The company's net revenue reached CHF 140.0 million, reflecting a slight increase of 0.2% at constant currencies compared to CHF 142.1 million in the first half of 2024, though it showed a 1.5% decrease at actual currencies. The incoming orders for the same period amounted to CHF 156.6 million, down 4.2% at constant currencies and 5.7% at actual currencies.
Despite these fluctuations in revenue and incoming orders, Ascom's EBITDA grew by CHF 1.6 million to CHF 12.1 million, resulting in an EBITDA margin increase of 1.2 percentage points, moving up to 8.6%. The group profit was CHF 2.2 million, down from CHF 2.9 million a year earlier, primarily due to unrealized foreign exchange effects. Notably, Ascom improved its net cash position significantly, ending the period with CHF 29.5 million compared to CHF 16.5 million in 2024, and an equity ratio of 37.9%.
The company’s strategic focus remains on enhancing critical communication and collaboration in the Healthcare and Enterprise sectors. In light of recent restructuring, Ascom streamlined its operations by reducing the number of management regions and integrating service teams for better efficiency.
Ascom has reaffirmed its guidance for 2025, targeting low single-digit revenue growth at constant currencies and an EBITDA margin of 9–10%. The launch of a share buyback program of up to 3 million registered shares reinforces its commitment to shareholder value. Overall, Ascom's first half reflects resilience and strategic realignment amid external market challenges.
MWN-AI** Analysis
Ascom's operational performance in the first half of 2025 indicates a mixed yet cautiously optimistic trajectory for the company. While there was a slight decrease in net revenue from CHF 142.1 million in H1 2024 to CHF 140.0 million in H1 2025, the revenue at constant currencies showed a marginal increase of 0.2%. This suggests resilience in core markets despite currency fluctuations impacting actual revenues more negatively.
A noteworthy aspect of Ascom’s performance is the increase in EBITDA, which rose to CHF 12.1 million, representing an improved EBITDA margin of 8.6%, up from 7.4% a year prior. This increase in profitability, coupled with a solid balance sheet and a net cash position of CHF 29.5 million, positions Ascom well for navigating potential market uncertainties.
The slight decline in incoming orders to CHF 156.6 million indicates that while the company is exercising cost control and efficiency improvements, it may face challenges in order intake, especially in the US and Canadian markets, where customer decision delays persist. Ascom's ongoing strategic focus on refining its portfolio and transitioning to cloud-based solutions is essential for future growth opportunities, particularly in the healthcare and enterprise sectors.
Investors should consider Ascom's re-confirmed guidance for low single-digit revenue growth and an EBITDA margin of 9-10% for the fiscal year, which signals management's confidence in the strategic initiatives underway. Additionally, the company’s share buyback program, aimed at enhancing shareholder value, emphasizes its commitment to capital return, signaling strong fundamentals despite short-term revenue challenges.
Overall, although the immediate revenue figures may be modest, the infrastructure changes and strategic investments suggest that Ascom is poised for sustainable growth. Investors might view this as an opportune time to buy into a fundamentally sound company proactively enhancing its operational capabilities.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Ad hoc announcement pursuant to Art. 53 LR
Baar, Switzerland, August 6, 2025
First half of 2025 at a glance:
- Net revenue of CHF 140.0 million (H1/2024: CHF 142.1 million), reflecting a slight increase of 0.2% at constant currencies and a decrease of 1.5% at actual currencies.
- Incoming orders amounted to CHF 156.6 million (H1/2024: CHF 166.1 million), reflecting a decrease of 4.2% at constant currencies and a decrease of 5.7% at actual currencies.
- EBITDA increased by CHF 1.6 million to CHF 12.1 million (H1/2024: CHF 10.5 million), and the EBITDA margin increased by 1.2 percentage points to 8.6% (H1/2024: 7.4%).
- Group profit amounted to CHF 2.2 million (H1/2024: CHF 2.9 million), impacted by predominantly unrealized foreign currency exchange effects.
- Net cash position amounted to CHF 29.5 million (H1/2024: CHF 16.5 million), with a solid equity ratio of 37.9% (H1/2024: 36.7%).
Guidance for the fiscal year 2025: Ascom reconfirms its full-year guidance with low single-digit revenue growth at constant currencies and an EBITDA margin of 9–10%.
Ascom strategy 2025: mid-year momentum and what’s next
Ascom’s strategy and transformation journey remain unchanged and clear, which is to be one of the leading providers in critical communication and collaboration in the Healthcare and Enterprise sectors. The key focus and achievements in H1/2025 have been:
- Ascom continued to streamline the portfolio and is completing the product containerization, laying the foundation for converged and cloud-based platforms across all segments. This has been a major investment of Ascom over the past three years to further enhance customer value and growth.
- Further efforts were made to improve Ascom’s operational efficiency through a cost improvement plan implemented during the second half of 2024 and the first half of 2025.
- Ascom established a new and leaner organization with a stronger customer focus and better cost efficiency:
– The number of regions was reduced from eight to three: Region North, South, and USA & Canada.
– The service, operations, and solutions teams were integrated across regions for better growth and more cost-effective project delivery.
These changes are expected to enable Ascom to
- further strengthen its position in critical communication and collaboration.
- capitalize on growth opportunities in Healthcare and Enterprise markets with software, nurse call, and mobility solutions.
- achieve continued EBITDA accretion year over year.
Key markets in line with expectations
The Ascom North and South regions generated results in H1/2025 in line with expectations. While the region North performed in line with the previous year, the region South showed some revenue growth (at constant currencies), but a decline in incoming orders.
The current market uncertainty in the USA and Canada delayed customer decisions and had a negative impact on order intake and revenue conversion in H1/2025, which was further compounded by the adverse currency evolution of the US Dollar in the first half of 2025.
The book-to-bill ratio remains at a healthy 1.12. Order backlog stood at CHF 309.6 million per 30.6.2025 (CHF 311.5 million per 30.6.2024), a decline of CHF 1.9 million or 0.6%. In constant currencies, order backlog increased by 3.7%.
Increased EBITDA margin
Gross profit in the first half of 2025 amounted to CHF 67.2 million, and the gross margin reached 48.0% (H1/2024: 47.3%). EBITDA came to CHF 12.1 million with an EBITDA margin of 8.6%, an increase of 1.2 percentage points compared to the previous year (H1/2024: CHF 10.5 million with a margin of 7.4%). EBIT was at CHF 5.0 million (H1/2024: CHF 4.0 million). As a result, Ascom closed the first half of 2025 with a Group profit of CHF 2.2 million (H1/2024: CHF 2.9 million).
Solid balance sheet with equity ratio of 37.9%
On 30 June 2025, cash and cash equivalents amounted to CHF 29.5 million. Ascom generated free cash flow of CHF 15.8 million in the first six months (H1/2024: CHF 2.1 million). The cash flow generation was positively impacted by higher cash from operating activities and lower investments. On 30 June 2025, the equity ratio stood at a solid 37.9% (H1/2024: 36.7%).
Share buyback program
To reinforce shareholder value and for the purpose of capital reduction, Ascom has launched a share buyback program up to a maximum of 3 million registered shares and up to a maximum buyback amount of CHF 15.0 million. The program started successfully. The share buyback program is planned to be closed in November 2026.
Guidance for fiscal year 2025
Ascom reconfirms its full-year guidance with low single-digit revenue growth at constant currencies and an EBITDA margin of 9–10%.
KEY FIGURES HALF-YEAR 2025
| In CHFm, except % | ||
| H1 / 2025 | H1 / 2024 | |
| Incoming orders | 156.6 | 166.1 |
| Order backlog (at the end of the period) | 309.6 | 311.5 |
| Net revenue | 140.0 | 142.1 |
| Gross profit | 67.2 | 67.2 |
| EBIT | 5.0 | 4.0 |
| EBIT margin in % | 3.6% | 2.8% |
| EBITDA 1 | 12.1 | 10.5 |
| EBITDA margin in % | 8.6% | 7.4% |
| Group profit | 2.2 | 2.9 |
| Number of employees (FTE) at 30.06. | 1,370 | 1,433 |
1 EBITDA, earnings before interest, income tax, depreciation, and amortization, see also definition in the 2025 Half-year Report on page 5.
The Ascom Group’s Half-Year Report 2025 and the accompanying Half-Year Results Presentation are now available in English at https://www.ascom.com/investors/reports-and-presentations/ .
In alignment with our commitment to sustainability, both the Half-Year Report 2025 and the letter to shareholders — which forms an integral part of the report — will be provided exclusively in electronic format to all shareholders via the link above.
The Half-Year Results Conference Webcast 2025 starts on Wednesday, 6 August 2025, at 10.00 a.m. CEST.
The conference can be joined via a live audio webcast with synchronized presentation slides, including Q&A or via conference call, where participants can ask questions after the presentation.
Live-Webcast: Link Live Audio Webcast
Dial In: Link Conference Call
Attachment
FAQ**
How does Ascom Holding AG ACMLF plan to address the 4.2% decline in incoming orders compared to H1/2024 while pursuing low single-digit revenue growth guidance for the full fiscal year 2025?
What specific measures is Ascom Holding AG ACMLF implementing to further enhance operational efficiency following the recent cost improvement plan and organizational restructuring?
Given the 1.2% increase in EBITDA margin for H1/2025, what strategies will Ascom Holding AG ACMLF adopt to achieve its targeted EBITDA margin of 9–10% for the full year amid potential market uncertainties?
How does the ongoing share buyback program of Ascom Holding AG ACMLF fit into its overall strategy for reinforcing shareholder value, especially in light of current financial performance?
**MWN-AI FAQ is based on asking OpenAI questions about Ascom Holding AG (OTC: ACMLF).
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