Burckhardt Compression sees strong compression demand

Burckhardt Compression reported surpassing CHF 1 bn sales and CHF 100 mn net income for the first time in fiscal year 2024. (Image: Burckhardt Compression)

Burckhardt Compression posted record financial results in fiscal year 2024, driven by high performance in its core compression business, a favorable market mix, and strategic investments in innovation and sustainability. The Swiss-based compressor manufacturer surpassed CHF 1 billion in annual sales and CHF 100 million in net income for the first time in its history, and is projecting continued strength in both its Systems and Services divisions as global demand for gas compression solutions remains resilient.

Systems Division fuels record growth

At the heart of the company’s performance was the Systems Division, which designs and delivers new reciprocating compressor systems. The division reported an 18.2% increase in sales to CHF 748.8 million and a 67.8% jump in EBIT to CHF 67.9 million, on the back of strong demand in the liquefied natural gas (LNG), liquefied petroleum gas (LPG), and petrochemical markets. Orders totaled CHF 825.4 million, up 5.8% year-over-year.

Despite headwinds from a slowdown in the hydrogen market, Burckhardt secured orders across strategic segments including LNG carriers, hyper compressors for low-density polyethylene (LDPE) and ethylene-vinyl acetate (EVA) production, and very large ammonia carriers (VLACs). These projects reflect long-term trends including rising energy demand, energy security concerns, and infrastructure investment to support cleaner fuels and materials.

CEO Fabrice Billard said the company’s strategic focus on gas transportation, renewable fuels, and hydrogen compression continues to pay off, especially as global population growth and the energy transition create new applications and use cases for Burckhardt’s technology.

While the Services Division saw a 5.4% decline in order intake to CHF 325.8 million due to facility closures in the US and macroeconomic softness in Europe, it delivered record operating profit of CHF 85.7 million, up 2.6% year-over-year. The division grew sales modestly by 2.2% to CHF 346.8 million, with a gross profit margin of 47.1%.

Burckhardt’s service business is pivoting toward higher-margin offerings and digital solutions that improve compressor reliability and reduce emissions. Two new digital products—UP! Insight and UP! Detect—allow real-time monitoring and anomaly detection of compressor systems, helping customers move from preventive to predictive maintenance.

The company also expanded its BC ACTIVATE program, which assesses compressor performance and identifies sustainability improvements. This program was applied to over 110 compressors across 42 sites in fiscal 2024, supporting customers’ emissions and efficiency goals.

Burckhardt Compression is targeting CHF 1.2 billion in sales and an EBIT margin between 12% and 15% by fiscal 2027. Despite global uncertainties including trade tariffs, foreign exchange volatility, and election-related policy shifts, the company expects fiscal 2025 to perform at similar levels to 2024.

Gas gathering and processing

“While Burckhardt Compression keeps an opportunistic approach towards traditional upstream market, the division sees growing perspectives for biogas (waste-to-energy), a market where Burckhardt Compression’s solutions are already well positioned for example in India. Demand for carbon capture, utilization and storage (CCUS) applications is also emerging,” the company said in its earnings report.

The company’s integrated strategy—anchored in a full lifecycle offering from new equipment to service, and supported by consistent R&D investment—positions it well to benefit from long-term structural drivers.

“We are at the heart of global megatrends,” Billard said in the shareholder letter. “Whether it’s energy transition, energy security, or the demands of a growing global population, all of it requires compressors. And that’s where we come in.”

With a record backlog, expanding digital capabilities, and a clear roadmap to reduce Scope 1 and 2 emissions by 50% by 2027 and reach net zero by 2035, Burckhardt Compression is maintaining its role as a global leader in reciprocating compression for a decarbonizing energy economy.