Segment Report

Challenges addressed

Global trade policy upheavals weighed on the results of all three segments – Engineered Components (EC), Fastening Systems (FS) and Distribution & Logistics (D&L) – in the 2025 financial year. SFS made important progress in all end markets served by the EC segment. The FS and D&L segments were still shaped by sub­dued market momen­­tum. The strategic growth projects were successfully continued in all segments. Due to the constantly changing market environment, the SFS Group launched a program to streamline the global production and distribution network.

The performances within the three divisions of the EC segment were once again positive during the 2025 financial year. Drivers for this in the Electronics division included applications for stamped precision components in the Mobile Devices business area and continued strong demand for components in nearline hard disk drives for data centers. In the Medical & Industrial Specials division, the Aerospace area in particular delivered a highly encouraging performance throughout the entire year. In the medical device industry, demand fell slightly short of expectations for the whole year, as key customers insourced manufacturing of some products. Despite excess capacity in the European automotive industry, the Automotive division achieved a positive result, partly due to the program to streamline the global production network.

Progress was successfully made in the ramp-ups of precision components and assemblies for brake systems at the Heerbrugg (Switzerland), Medina (USA) and Nantong (China) locations. The expansion of the plant in Kanagala (India) for the Electronics and Automotive divisions continued as planned.

The results recorded in the FS segment, which serves customers in the European and North American construction industry, were impacted by both the economic environment and a regionally cold and unusually long winter at the start and end of the year. Over the course of financial year 2025, there was a slight recovery in demand, with the North American construction industry proving more dynamic than its European counterpart.

On August 1, 2025, the SFS Group acquired DB Building Fasteners. The distribution specialist with locations in the Californian cities of Ontario and Sacramento (USA) focuses on fastening systems and accessories for building envelopes. With this acquisition, SFS is increasing its access to the construction industry in the western USA and is thus consistently implementing its growth strategy.

Industrial manufacturing – mainly served by the D&L segment, which provides quality tools and in Switzerland additionally fastening technology – experienced subdued market momentum throughout another financial year. In this challenging environment, the D&L segment managed to achieve solid results thanks to its prudent cost management and comprehensive range of products and services.

With its planned acquisition of three partner companies – Gödde GmbH, Oltrogge Werkzeuge GmbH and Hch. Perschmann GmbH – at the end of March 2026, as well as the purchase of a 51% holding in 3D-printing specialist Jellypipe AG, SFS will be able to consolidate its market position in the trading business and continue to expand its technology offering. Hoffmann SE has enjoyed a close and successful collaboration with the three partner companies Gödde, Oltrogge and Perschmann for more than 30 years. The companies already benefit from each other in terms of product range design and infrastructure. In recent years, the collaboration has been steadily intensified and the sales partners have grown closer together, both operationally and culturally. This is evidenced by the recent integration of the local warehouses into Hoffmann’s LogisticCity in Nuremberg (Germany), the most efficient logistics center for quality tools in Europe. Following the acquisition of Hoffmann in 2022, the SFS Group is pressing ahead with the internationalization of its trading business in Belgium, Luxembourg and Poland by taking this step. The acquisition of the three companies will enable the companies to pool their resources and realize advantages in terms of expertise and costs.

Since January 1, 2025, the Construction & Wood business area of the D&L segment, which focuses on the construction industry, has been allocated to the FS segment. The previous year’s figures have been restated to reflect the new segmentation in the interests of better comparability.

Changes to the production and distribution network

Due to the constantly changing market environment, particularly in industrial manufacturing and the automotive industry, SFS launched a program to streamline the global production and distribution network in the reporting year. Concentrating on a smaller number of production locations will facilitate an efficient use of resources and reduce complexity. This will also allow SFS to sharpen the focus on applications with a high potential for differentiation and clear customer benefits. These measures will help us achieve our growth and profitability targets. At the same time, the strategic priority of the local-for-local principle remains unchanged.

The company sales, transfers and site closures will affect a total of approximately 650 jobs. The implementation of the program is scheduled to be completed by the end of 2027. As at the publication date of the Annual Report 2025, the following projects have been implemented or initiated:

• To achieve economies of scale, activities related to blind riveting technology at the SFS location in Brunn am Gebirge (Austria) were transferred from Austria to Germany in the spring of 2025.
• Operations in Olpe (Germany) were discontinued in the second half of 2025. In response to the adverse market environment and declining demand, SFS decided to serve the end market of the window and furniture fitting industry exclusively from the Heerbrugg location in the future.
• The D&L segment’s Asia-Pacific organizational unit gradually transferred its activities in Malaysia and Singapore to selected distribution partners, with the last transfer occurring in October 2025.
• With SFS’s strategic focus on direct sales to industrial manufacturing customers, the D&L segment was no longer able to fully exploit the potential of the Swiss company Allchemet. Allchemet was therefore sold at the end of October to a group of buyers led by Thomas Krummenacher, the current managing director, who will continue to manage its operations.
• SFS’s Turnov (Czech Republic) location mainly supplies customers in the automotive industry. Persistently adverse market conditions have prompted us to close the plant in 2026. Subject to economic feasibility and the customers’ consent, the location’s business will be transferred to Heerbrugg.
• At the Flawil location in Switzerland, deep drawing technology and cold forming processes are used to manufacture precision components for the automotive industry. With the aim of safeguarding profitability, SFS will withdraw from the deep drawing business in Europe and will close the location until the end of 2027. Approximately one-third of the 110 jobs affected by this will be transferred to Heerbrugg with the relocation of the cold forming operations. Attempts will be made to find individual solutions to transfer the other 75 employees within the company or to external partners.
• The economic conditions in Türkiye are very challenging for exporting companies. As the Torbalı site has not been profitable for some time, SFS is closing it at the end of March 2026. As a result of the closure, the approximately 180 employees cannot be retained.

With the implementation of this program, SFS anticipates a reduction in sales of approximately CHF 110 million as well as non-recurring costs of approximately CHF 75 million. As at December 31, 2025, non-recurring costs stood at CHF 46.7 million, which were adjusted in the EBIT.