The Swatch Group Ltd

Latest Results (17.05.2026):

The Swatch Group Ltd — Q4 2025 (full-year 2025) results: For the year ended 31 December 2025 the Group reported net sales of CHF 6,280 million (‑1.3% at constant exchange rates, ‑5.9% at current rates), with a strong recovery in H2 and especially Q4. Group operating profit fell to CHF 135 million and net profit to CHF 25 million, driven mainly by a sharply negative result in the Production segment after management deliberately maintained capacities and jobs. The Board proposes unchanged dividends; liquidity and a very high equity ratio remain strengths.

Headline sales

Net sales CHF 6,280m; down 1.3% at constant FX (‑5.9% reported). Negative currency impact CHF 308m. Strong second-half momentum: H2 sales +4.7% at constant FX; Q4 sales up 7.2% worldwide and across price segments. Greater China remained cautious and weighed on performance.

Operating profit and margins

Watches & Jewelry (excl. Production) operating profit CHF 549m (operating margin 9.5%). Group operating profit CHF 135m (prior year CHF 304m); Group operating margin 2.1% (prior 4.5%). The Production segment posted a strongly negative operating result due to the deliberate maintenance of production capacity and staffing.

Profitability and cash

Net profit CHF 25m (net margin 0.4%; prior year CHF 219m / 3.3%). Operating cash flow CHF 507m, up 52.3% year‑on‑year. Net liquidity CHF 1,195m (prior year CHF 1,376m).

Balance sheet strength

Equity CHF 11.7 billion and an equity ratio of 87.1%, reflecting a very strong capital structure. Inventories reduced by CHF 346m (‑4.5%) during 2025.

Workforce and industrial strategy

Employees: 31,796 at year‑end (‑2.1% vs prior year). Management prioritized long‑term industrial capacity and jobs over short‑term cost cuts, accepting near‑term production losses to preserve manufacturing capabilities.

Dividends

Board proposal: unchanged dividend of CHF 0.90 per registered share and CHF 4.50 per bearer share (same as prior year), to be proposed at the AGM on 12 May.

Innovation and outlook

187 patent applications in 2025 (vs 196 prior year). ETA introduced its first Smart Factory. Management reports positive sales momentum continuing into January 2026 and expects significant improvement in Production losses and Group profitability in 2026 if current trends persist.