Segment Report

Streamlining structures

Global trade policy upheavals weighed on the results of all three segments Engineered Components (EC), Fastening Systems (FS) and Distribution & Logistics (D&L) during the first half of 2025. In this environment, SFS intensified its focus on core applications with a high potential for differentiation and created the conditions needed for business processes that are efficient and fit for the future. The strategic growth projects were successfully driven forward in all segments.

In the EC segment, the Electronics division once again reported positive development and pleasing growth. This was driven in part by applications for stamped precision components in the Mobile Devices business area as well as demand for components used in Nearline Hard Disk Drives for data centers, which continued to be encouraging. Uncertainty on the market led to restraint in the product inquiries received from customers in the Automotive division. Further strides were made in the ramp-ups of precision components and assemblies for brake systems at the Heerbrugg (Switzerland), Medina (USA) and Nantong (China) locations. The Medical & Industrial Specials division confirmed the dynamic result of the prior-year period.

The results of the FS segment were impacted not only by the economic environment but also by a winter that was cold and unusually long in certain regions. SFS was able to complete its production capacity expansion and ramp-up at the Exeter (USA) location on schedule. The business areas of the D&L segment focused on the construction industry were integrated into the FS segment as planned.

The industrial manufacturing end market – mainly served by the D&L segment, which provides quality tools and in Switzerland additionally fastening technology – experienced restrained market momentum in the first half of 2025 as well. The warehouses of two European distribution partners were replaced as planned by LogisticCity in Nuremberg (Germany). This will significantly increase capacity utilization of LogisticCity.

Changes to the production and distribution network

Due to ongoing changes in the market environment, especially in industrial manufacturing and the automotive industry, the segments are making changes to their production and distribution network. Not only will this allow SFS to sharpen the focus on applications with high potential for differentiation and clear customer benefits, but concentrating on a smaller number of production locations will facilitate efficient resource deployment and reduce complexity. 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.

A total of around 650 jobs are affected by company sales, transfers and site closures. Among others, the following projects are currently being implemented:

• 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) will be discontinued over the course of the second half of the year. In response to the adverse market environment and declining demand, SFS decided to serve the window and furniture hardware industry end market exclusively from the Heerbrugg location in the future.
• The D&L segment’s Asia-Pacific organizational unit will gradually reduce its activities in Malaysia and Singapore. All operations will have been transferred to selected distribution partners by fall 2025.
• The SFS Group signed a contract on June 30 to sell Allchemet, a Swiss company that supplies retailers with tools, fastening technology and chemical-technical products. With SFS’s strategic focus on direct sales to industrial manufacturing customers, it is no longer able to fully exploit Allchemet’s potential. The company will be sold until end of the year to a group of buyers led by Thomas Krummenacher, the current managing director, who will continue to manage its operations.
• SFS’s location in Turnov (Czech Republic) mainly supplies customers in the automotive industry. For several years now, this plant has been unable to meet its growth and profitability targets. Persistently adverse market conditions have prompted us to close the plant by mid-2026. Subject to economic feasibility and the customers’ consent, the location’s business will be transferred to Heerbrugg.

Further streamlining of the Group structure

The SFS Group made changes to its organizational structure and restructured its FS and D&L segments as of January 1, 2025. These efforts were aimed at sharpening the Group’s focus on selected end markets, streamlining its decision-making processes and strengthening collabo­ration among the segments. Against this backdrop, the divisions in the Engineered Components (EC) segment will be disbanded as at January 1, 2026, and the responsibilities will be reassigned based on the applications involved.

Urs Langenauer appointed Head of the EC segment

Urs Langenauer, previously Head of the Automotive division, will take over as Head of the EC segment. George Poh, longtime Head of the Electronics division, will step down from the Group Executive Board upon his retirement at the end of 2025. Walter Kobler, Head of the Medical & Industrial Specials division, will also be stepping down from the Group Executive Board; he will take over as Head of the Medical business unit until his planned retirement at the end of 2026. The Board of Directors and Group Executive Board would like to take this opportunity to express their sincere thanks to both of these long-standing members of the Group Executive Board for all their hard work – their successes have helped shape the company.

Martin Reichenecker to assume overall responsibility for Region Asia

As of January 1, 2026, Martin Reichenecker will take responsibility for strengthening and further developing all business areas in the Asian growth market in his new role as Head of Region Asia. This region plays a key role for us in driving sustainable and profitable growth. With an integrated, overarching management, we aim to strengthen our market position and leverage the potential in all Asian end markets. Martin Reichenecker has been at the helm of the D&L segment since the start of 2025. Prior to that, he had held various positions in Hoffmann’s management since 2004. Thanks to his previous roles, he has extensive experience in the Asian market.

Iso Raunjak becomes new Head of D&L segment

Iso Raunjak, previous Head of the D&L Switzerland division and current Chief Human Resources Officer (CHRO), will take over as Head of the D&L segment from Martin Reichenecker at the start of 2026. Thanks to his many years of experience in various management positions within the segment, he knows the business in detail and is ideally suited for this position.

Christina Burri joins Group Executive Board

Christina Burri will take over the role of CHRO from Iso Raunjak, meaning that she will be responsible for Human Resources (HR), Marketing & Corporate Communications and ESG (Environment, Social and Governance). Prior to that, she spent ten years successfully managing the SFS Group’s Legal, Tax & Compliance and the Accounting & Reporting departments, as well as the Service Center Finance & Controlling Switzerland. Her many years of leadership experience and deep understanding of SFS’s organization and culture make her ideally qualified to successfully further develop the areas of HR, Communications and ESG. Christina Burri will become a member of the Group Executive Board on January 1, 2026, as part of her new role.

This next step in the organizational development will enable SFS to tackle the challenges of the current market environment in a targeted manner. It also sends a clear signal about SFS’s commitment to employee development and its local-for-local principle.