The 2025 financial year presented the StarragTornos Group with significant challenges, while at the same time highlighting the robustness of our strategic course. The global environment remained highly demanding. Persistent geopolitical tensions, ongoing tariff debates in the United States, and a general lack of predictability required swift responses, often on very short notice. Navigating these diverse and sometimes opposing conditions called for a high degree of flexibility, resilience, and close collaboration across the organization. Workloads varied considerably within the Group: while certain areas experienced reduced activity, others were operating at full capacity. Strong demand from the aerospace and defense sectors, as well as from the Americas and Asia, contrasted sharply with weaker conditions in other sectors and in Europe.
We addressed these conditions with targeted actions focused on safeguarding the Group’s operational integrity while laying the groundwork for future success. At some locations, short-time work and organizational adjustments were required, whereas other sites operated at high utilization levels driven by strong demand. Balancing these differing situations was demanding, but ultimately successful, supported by the diversity and complementary nature of our global footprint.
Overall, our Group recorded an order intake on last year’s level and an increase in order backlog of 3.2% to CHF 336.4 million. Net sales decreased by 10.5% to CHF 442.1 million. This was attributable, on the one hand, to declining order backlogs in certain areas and, on the other, to the fact that some orders received during the reporting period will not become revenue-effective before 2026. Yet the resilience of our business model of customer- and market-driven innovation, a global geographic presence, comprehensive services, and operational excellence is evident.
Compared with the previous year, EBIT declined from CHF 15.4 million to CHF 6.0 million, resulting in a decrease in the EBIT margin from 3.1% to 1.4%. Net profit fell from CHF 11.9 million to CHF 5.3 million. This development was mainly driven by a 10.5% reduction in net sales, which was only partially offset by cost-saving measures, short-time work, and restructuring activities. In addition, lower other operating income, and a change in the sales mix, with a lower proportion of higher-margin products, had a negative impact on margins.
Starrag division
During the year, the Starrag division launched new machining solutions for the aerospace industry, including a heavy-duty horizontal machining center designed for titanium structural components and a vertical turning machine for jet engine manufacturing and maintenance. The new products achieved strong market acceptance, with initial sales to key customers and major orders currently in execution.
The division’s net sales for 2025 totaled CHF 324.4 million, 11.3% below the previous year’s figure (CHF 365.6 million).
Tornos division
In the Tornos division, the Swiss DT 7 and Swiss DT 10 have successfully entered global markets since their launch at the beginning of 2025, strengthening the product portfolio with compact, high-speed, and modular solutions. Digital solutions such as Tornos Closed-Loop Manufacturing and the Connectivity Pack further enhance efficiency by automating tool corrections.
The division’s net sales for 2025 totaled CHF 117.7 million, 8.4% below the previous year’s figure (CHF 128.5 million).
Service business
Services are gaining in importance in line with sustainability and circular economy requirements, with customer machine retrofits playing a key role. The Group is committed to maintaining a competitive edge, including in after-sales activities. In 2025, the Group’s service business accounted for 28.4% of total net sales at Starrag, and for 31.3% at Tornos. It continued to be the resilient backbone of the StarragTornos business model.
Remembering Walter Fust
This year was also marked by reflection and remembrance. In February, we bid farewell to Walter Fust, a long-standing majority shareholder who played a decisive role in shaping both Starrag and Tornos and in bringing about the creation of the StarragTornos Group. His legacy and contributions to the company will be remembered with gratitude.
Distribution to shareholders
At the Annual General Meeting on April 17, 2026, the Board of Directors will propose to the shareholders a dividend of CHF 1.00 per share, which corresponds to a payout ratio of 102.2%.
Outlook
The economic outlook for 2026 remains difficult. There are currently no clear signs of a long-term upturn, and uncertainty continues to characterize the economic environment. Our order backlog provides us with a solid basis. We continue to follow a cautious but flexible course in order to be able to react quickly to changes. We will continue to rigorously pursue cost efficiencies and actively exploit opportunities as they arise.
Thanks
The Board of Directors and the Executive Board thank all employees for their commitment, as well as our customers and suppliers for their close cooperation. We are especially grateful to our shareholders for their trust and continued support.
Michael Hauser
Chairman of the Board of Directors
Martin Buyle
Chief Executive Officer
Rorschacherberg, March 2026
Rorschacherberg, March 2026