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The Swiss manufacturer reported orders and sales of CHF 705 million and CHF 783 million, respectively, beating consensus estimates by 2% and 1%. The company’s book-to-bill ratio (BtB) of 0.90, although lower than the long-term average, matched forecasts, signaling a gradual recovery in some of its end markets.
Bucher’s third-quarter performance showcased a mixed picture with orders increasing by 3% year-on-year (YoY) on an organic basis, while sales fell by 8% YoY. Despite a 21% drop in backlog compared to the previous year, the figure remains high relative to the period before the agricultural boom years of 2021/23.
The workforce reduction by 6% YoY, primarily among temporary workers, reflects Bucher’s ability to adjust to market conditions without major restructuring or divestments.
A notable contribution to the order beat came from the KUHN Group, which saw a 21% YoY organic increase in orders, driven by a stronger investment willingness among European farmers due to favorable weather conditions. Brazil’s market is also showing signs of recovery. The management highlighted robust demand from the dairy and meat sectors, though capacity utilization remains low in larger agricultural areas.
The Hydraulics division also performed well, with a 10% YoY organic increase in orders and a return to a book-to-bill ratio of 1.0 after three years of backlog contraction. This improvement was attributed to heightened demand for industrial stationary hydraulics.
Bucher confirmed its outlook for the year, projecting flat sales and margins, with an additional 1.4 percentage points margin benefit from a property sale gain. The company also acknowledged trade policy uncertainties as potential risks.
RBC analysts commented on the results, stating, "Bucher’s Q1 order intake and revenues are a slight beat. The onset of a recovery in the ag equipment market helps KUHN and Hydraulics, but as the backlog keeps shrinking.
We expect Bucher not to cut capacities too deeply, even if production goes below 50-60% utilisation. This is because the ag equipment market is notoriously cyclical and the recovery can gain momentum at any point. In the meantime there is a risk that under-utilisation will lead to negative cost effects."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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