Costs, currency weigh on Forbo result

Baar, Switzerland — Forbo Group reported slightly lower sales and a sharp decline in operating profit for the 2025 financial year, citing weaker capacity utilisation, higher costs and adverse currency effects in a challenging market environment.

Net sales fell 3.3% to CHF1.1 billion (€1.2 billion). In local currencies, sales were down 0.3%, the Swiss group said 3 March.

Operating profit (EBIT) declined 27.2% to CHF87.8 million, while earnings (EBITDA) fell 17.7% to CHF136.8 million.

Forbo said the year was shaped by a “challenging macroeconomic and geopolitical environment,” due to rising tariffs and trade tensions, high energy costs in Europe, inflation concerns in the US and weak construction activity in China.

The appreciation of the Swiss franc also “further weighed” on the result.

Despite the backdrop, the group said it advanced “important operational initiatives” and expanded production capacity in Japan and the US.

The group’s ‘movement systems’, which produces high-performance belts used in industrial and commercial applications, increased manufacturing capacity in Japan.

Flooring systems strengthened its presence in the US, as part of measures to reduce exposure to trade barriers and strengthen the “long-term robustness” of supply chains.

Investments totalled CHF47.0 million, up slightly from CHF46.1 million in 2024, said Forbo.

In terms of divisional performance, flooring systems reported net sales of CHF738.2 million, down 3.6% year-on-year.

Sales volumes and prices each declined 0.6% while operating profit fell 18.7% to CHF80.5 million.

The division, Forbo said, was affected by subdued construction and renovation markets in Europe and additional tariffs on exports to the US.

Movement systems recorded net sales of CHF347.2 million, down 2.6% year-on-year, while volumes slipped 0.2%.

Operating profit dropped 49.3% to CHF15.4 million, as price increases of 1.9% did not fully offset higher costs and softer demand in the US.