Burckhardt Compression reports higher orders despite lower first-half sales

Fornovo Gas DA300 Oil-Free compressor for grid injection at the La Bersagliera Biomethane Plant, with anaerobic digesters in the background, Forlì, Italy. (Image: Burckhardt Compression)

Burckhardt Compression reported a 5.4% increase in order intake during the first half of fiscal 2026, supported by demand for marine compression equipment and new applications in CO2 transport and hydrogen, although sales declined as the company worked through a smaller order backlog.

The Switzerland-based reciprocating compressor manufacturer reported orders of CHF 422.5 million (US$531 million), compared with CHF 400.7 million in the corresponding period of 2025.

Sales declined 11.1% to CHF 459 million (US$577 million), reflecting the timing of project deliveries and a lower backlog following several years of elevated orders.

Operating income decreased 15.4% to CHF 55.5 million (US$70 million), while the operating margin was 12.1%, compared with 12.7% a year earlier. Excluding CHF 3.4 million in restructuring expenses, the underlying operating margin was 12.8%.

Despite the lower sales, Burckhardt Compression maintained its full-year guidance, forecasting sales of CHF 900 million to CHF 1 billion (approximately US$1.13 billion to US$1.26 billion) and an operating margin of approximately 12%.

“We are successfully expanding into new markets, supporting a return to growth despite continued short-term uncertainty,” said Fabrice Billard, CEO of Burckhardt Compression. “At the same time, we remain focused on disciplined execution and on strengthening our cost competitiveness.”

Marine compression supports equipment orders

Order intake in the Systems Division increased 6.3% to CHF 260.9 million (US$328 million), supported by continued demand from the LNG and LPG carrier markets.

The division also secured orders for emerging applications, including compression equipment for the first large CO2 transport ship associated with the Northern Lights carbon capture and storage project.

Additional orders involved hydrogen applications in the semiconductor industry in Taiwan and South Korea.

Burckhardt Compression also completed its acquisition of Fornovo Gas in July 2026, expanding its presence in biogas and biomethane compression applications.

The Systems Division reported sales of CHF 320.1 million (US$403 million), down 15.2% from a year earlier. Operating income declined 14.7% to CHF 32.9 million, although the operating margin improved slightly to 10.3%.

The company attributed the lower sales primarily to project delivery schedules. It also cited industrial overcapacity, trade uncertainty and delayed investment decisions in China, along with logistics and feedstock disruptions affecting customers in Asia and Europe.

Aftermarket orders increase

Burckhardt Compression’s Services Division recorded a 4.1% increase in order intake to CHF 161.6 million (US$203 million), driven by marine business and several large orders in Asia.

Sales were unchanged at CHF 138.9 million, while operating income declined 9.4% to CHF 30.1 million.

The division’s operating margin was 21.6%, compared with 23.9% in the prior-year period, reflecting a less favorable business mix and reduced capacity utilization.

The company expects maintenance activity among customers in the Middle East and Asia to recover as disruptions affecting shipping through the Strait of Hormuz ease.

Burckhardt Compression has also begun implementing cost-reduction measures announced in August, including organizational restructuring, consolidation of selected functions and expanded operations in India.

The company expects the measures to generate approximately CHF 20 million (US$25 million) in annual savings beginning in fiscal 2027.

Energy infrastructure investment supports outlook

Burckhardt Compression expects stronger sales during the second half of fiscal 2026, supported by its existing order backlog and scheduled deliveries.

The company said energy security concerns are encouraging additional investment in LNG and LPG infrastructure, gas pipelines, transportation equipment and marine vessels.

It also identified potential opportunities in refinery and petrochemical projects in Middle Eastern countries with access to shipping routes outside the Strait of Hormuz.

Over the medium term, Burckhardt Compression is targeting annual sales of CHF 1.2 billion (approximately US$1.51 billion) and an operating margin of 12% to 15%.

The company said its growing portfolio of applications in gas infrastructure, marine transportation, hydrogen and CO2 compression will support efforts to reach those targets.