Earnings release
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Third quarter 2025 sales update Pharmaceutical Composition Testing, Switzerland
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1 Refer to alternative performance measures in the Appendix SGS | Q3 2025 sales update Third quarter 2025 sales update Strong performance in Q3: organic sales up 6.0% Ad hoc announcement pursuant to article 53 LR Geneva, 23 October 2025 • Q3 sales of CHF 1 729 million, up 6% on an organic basis • Launch of new global framework SGS DIGITAL TRUST • Sustained bolt-on activity with 17 acquisitions completed year-to-date • Outlook confirmed Géraldine Picaud, Chief Executive Officer, commented: “Q3 was another strong quarter for SGS. Our excellent organic growth of 6.0% and scope effect of 1.9% underline the strength and resilience of our business model, as well as the disciplined execution of Strategy 27 - ‘Accelerating growth, building trust’. We will continue to drive its implementation at full speed, positioning the group in markets with the strongest momentum, driven by Sustainability, Digital Trust and the migration of global supply chains. Our sustained bolt-on acquisition strategy will keep fuelling the growth of tomorrow. I want to sincerely thank all our SGS teams for their commitment to performance and excellence.” Sales review Group sales (CHF million) Q3 2024 Q3 2025 Sales 1 699 1 729 Total change 1.8% of which organic1 6.0% of which scope 1.9% of which FX -6.1% Q3 2025 Group sales by division Organic 1 growth Sales (CHF million) Asia Pacific 7.6% 511 Europe 4.5% 510 North America 3.9% 184 Eastern Europe, Middle East & Africa 3.8% 178 Latin America 14.1% 153 Testing & Inspection 6.3% 1 536 Business Assurance 3.7% 193 Total Group 6.0% 1 729
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1 Refer to alternative performance measures in the Appendix SGS | Q3 2025 sales update 2 Q3 2025 sales review Sales reached CHF 1 729 million in Q3 2025, up 1.8% compared to prior year. Strong organic¹ growth of 6.0% and positive net scope effect of 1.9% more than offset the adverse foreign exchange effect of -6.1%. Testing & Inspection delivered organic1 sales growth of 6.3%, supported by all business lines. Business Assurance achieved 3.7% organic1 sales growth, with strong momentum in Sustainability impacted by underperformance in Consulting. Sustainability services under our IMPACT NOW framework remained a key driver of growth, with major contracts signed across its four pillars: Climate, Circularity, Nature, and ESG Assurance. IMPACT NOW brings together SGS’s comprehensive sustainability offering, delivering tailored solutions that help clients achieve measurable progress toward their sustainability goals. Digital Trust also continued to be a significant driver of growth in the third quarter, supported by strong advancements in AI management certification and cybersecurity services. Building on this momentum, the Group launched ‘SGS DIGITAL TRUST: Across technologies, services and organizations’, a new global framework that unites all digital trust services under one structured and consistent approach. Grounded in SGS’s proven expertise, this framework strengthens and streamlines the Group’s digital trust portfolio, helping organizations to navigate today’s increasingly complex digital ecosystem with confidence. It is built around four strategic pillars: Connected Products & Technologies, Digital Services & Infrastructure, Data & Artificial Intelligence and Organizations & People. Each pillar reflects SGS’s expertise in areas such as design validation, security evaluation, life cycle assurance, impartial oversight and continuous monitoring. Addressing all key dimensions of digital trust – including safety, cybersecurity, privacy, fairness, transparency, and sustainability – the framework supports a wide range of industries, including critical infrastructure, medical technology, mobility, consumer electronics, and wireless, as well as emerging sectors such as payments, digital identity, telecoms, space, and semiconductors. Mergers & Acquisitions activity The Group made seventeen bolt-on acquisitions since the beginning of the year to accelerate growth and profitability in key markets, especially in North America and Europe. They represent combined sales of more than CHF 150 million on an annual basis. Building on the twelve acquisitions announced at the time of the half-year results, SGS has since added five more companies to its portfolio, further expanding its footprint in high-growth, strategically attractive segments: • MPR Services, a U.S. provider of liquid and gas reclamation services, supporting energy companies with identifying and treating contaminants in their raw products. These innovative solutions clean solid materials, make them recyclable and reduce waste. The acquisition strengthens SGS’s role in the energy transition by advancing cleaner technologies and improving environmental performance in industrial operations. • Fulcrum Robotics, an Australian specialist in aerial, marine and terrestrial drone-based inspection and robotic services for the industrial and environmental sectors. This acquisition supports the Group’s sustainability and innovation agenda by deploying advanced technologies that help reduce environmental risks and improve efficiency. • Geosol, a leading Brazilian provider of geochemical, environmental and analytical laboratory services in mineral engineering. The acquisition of an additional stake giving control, strengthens the Group’s capabilities in mineral analytics by enabling fully integrated lab-to-site solutions that improve efficiency and precision. • Tres60, a Chilean technology integrator for mining operations. This acquisition strengthens SGS’s presence in the sector value chain and supports its ambition to deliver data-driven, AI-enabled solutions that enhance operational performance and sustainability. • Qualitest, a Canadian leader in welding engineering, mechanical testing, failure analysis and inspection services for key industrial sectors from manufacturing to infrastructure. In addition, the closing process of Applied Technical Services (ATS) is on track with the transaction expected to close by late 2025 / early 2026. ATS is a leading provider of specialized T esting, Inspection, Calibration and Forensics solutions in North America and is expected to bring USD 460 million of sales and USD 95 million of EBITDA before synergies in 2026.
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1 Refer to alternative performance measures in the Appendix SGS | Q3 2025 sales update 3 Bolt-on acquisitions to date Closing date Location Business line FTE Aster Global January 2025 USA Business Assurance 25 Stella Operazioni Doganali January 2025 Italy Connectivity & Products 30 RTI Laboratories February 2025 USA Industries & Environment 30 Carpedia International March 2025 Canada Business Assurance 100 HidroMares Oceanografia April 2025 Brazil Industries & Environment 64 IMO Group April 2025 Australia Natural Resources 40 AWIA Umwelt GmbH April 2025 Germany Industries & Environment 38 Streamline Control May 2025 Canada Industries & Environment 60 H2Safety June 2025 Canada Industries & Environment 86 EFBE June 2025 Germany Connectivity & Products 17 Ecoloss July 2025 Netherlands Industries & Environment 26 Walsh August 2025 Peru Industries & Environment 180 MPR Services August 2025 USA Industries & Environment 36 Fulcrum Robotics September 2025 Australia Industries & Environment 16 Geosol September 2025 Brazil Natural Resources 950 Tres60 October 2025 Chile Natural Resources 264 Qualitest Expected November 2025 Canada Industries & Environment 28 Outlook 2025 SGS confirms all its targets for 2025: • 5% to 7% organic1 sales growth • 1% to 2% bolt-on contribution to annual sales growth • At least 30 basis points improvement in adjusted operating income margin1 on sales, in reported terms • Strong free cash flow1 generation Conference call A live webcast for analysts and investors will be held on 23 October 2025 at 10:00am CET. Details of the webcast can be found below: https://event.choruscall.com/mediaframe/webcast.html?webcastid=qtCq3NqW&utm A recording of the webcast will be available later in the day on sgs.com.
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1 Refer to alternative performance measures in the Appendix SGS | Q3 2025 sales update 4 Sales by end-market Testing & Inspection: Industries & Environment Industries & Environment delivered excellent organic1 growth of 7.9% in Q3 2025, led by Safety. • Continued high single-digit organic1 growth in Safety was driven by strong demand in North America and Europe • Projects & Advisory delivered strong growth from new project wins in Latin America and Asia Pacific • Industrial testing delivered excellent results, reflecting solid execution and consistent performance across all regions • Environment achieved moderate growth, with a softer summer period compensated by a marked increase in laboratory testing in September Testing & Inspection: Natural Resources Natural Resources delivered solid organic1 growth of 4.4% in Q3 2025. • Minerals continued to be led by strong demand in critical minerals and metals in the Americas and Asia Pacific • Oil, Gas and Chemicals delivered solid growth supported by increased sales and marketing efforts in Asia Pacific and North America • Strong growth in Agriculture was mainly driven by a double-digit increase in the Americas and recovery in Europe • Despite geopolitical uncertainties, our market leading global footprint continues to allow us to capture new trade route opportunities (CHF million) Q3 2025 9M 2025 Sales 574 1 703 Total change 5.3% 3.5% of which organic1 7.9% 6.2% of which scope 3.4% 2.2% of which FX -6.0% -4.9% (CHF million) Q3 2025 9M 2025 Sales 405 1 206 Total change -1.9% -2.1% of which organic1 4.4% 3.3% of which scope 0.7% 0.1% of which FX -7.0% -5.5%
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1 Refer to alternative performance measures in the Appendix SGS | Q3 2025 sales update 5 Testing & Inspection: Connectivity & Products Connectivity & Products posted strong organic1 growth of 6.2% in Q3 2025, driven by Sustainability and Digital Trust. • High single-digit organic1 growth in Connectivity was driven by technology security in Asia Pacific and product safety in North America • Solid organic1 growth in Softlines was supported by high demand for eco-friendly products • Hardlines delivered high single-digit organic1 growth, benefiting from supply chain shifting opportunities across South-East Asia • Mid-single-digit organic1 growth in Government services was led by product conformity assessment and anti-fraud services Testing & Inspection: Health & Nutrition Health & Nutrition delivered strong organic1 growth of 6.2% in Q3 2025, driven by Food. • Double-digit organic growth continued in Food, with strong demand for emerging contaminants testing and safety in all regions • Strong double-digit growth was achieved in Nutraceutical and Dietary supplement product certification • Moderate organic growth in Pharma was driven by Clinical research in Europe, partly offset by soft performance in drug development • New project awards in Cosmetics & Personal Care during latter part of Q3 and expected to continue in Q4 (CHF million) Q3 2025 9M 2025 Sales 339 1 011 Total change 0.0% 2.6% of which organic1 6.2% 6.4% of which scope 0.6% 1.2% of which FX -6.8% -5.0% (CHF million) Q3 2025 9M 2025 Sales 218 658 Total change 3.3% 7.2% of which organic1 6.2% 8.0% of which scope 1.9% 2.1% of which FX -4.8% -2.9%
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1 Refer to alternative performance measures in the Appendix SGS | Q3 2025 sales update 6 Certification: Business Assurance Business Assurance saw resilient organic1 growth of 3.7%, led by Sustainability. • Strong organic1 growth was achieved in Certification in a post-recertification year, led by double-digit growth in medical devices, food and Digital Trust assurance • Double-digit growth in Sustainability services was driven by greenhouse gas emissions verification, sustainability assurance and social audits • Consulting remained soft, with several projects delays in North America • Recent acquisitions made a strong contribution to overall growth (CHF million) Q3 2025 9M 2025 Sales 193 573 Total change 1.0% 2.9% of which organic1 3.7% 4.1% of which scope 2.6% 2.9% of which FX -5.3% -4.1%
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SGS | Q3 2025 sales update 7 Appendix Alternative Performance Measures For the period ended 30 September 2025 The following document presents and defines the Group’s alternative performance measures (APMs), not defined by IFRS which are used to evaluate financial and operational performance. Where relevant, a reconciliation to the information included in our IFRS consolidated financial statements is presented. Management deems these performance measures as a useful source of information when taking decisions and managing the operations. These alternative performance measures are disclosed in the integrated report, the half year report, the quarter reports and other external communications to investors, and are available following this link: https://www.sgs.com/en/investors/reports Organic sales growth Organic sales growth is used by management to evaluate the evolution of existing operations, excluding the changes in scope (impacts of business acquisitions and divestments) and currency fluctuations. This provides a ‘like-for-like’ comparison with the previous period in constant scope and constant currency, enabling deeper understanding of the business dynamics which contribute to the evolution of sales from one period to another. • Scope: the results from acquisitions are excluded for the 12 months following the date of a business combination, while results generated by a divested unit are excluded for the 12 months prior to the divestiture • Currency fluctuations: sales at constant currency are calculated by translating current year numbers at prior year average exchange rates (except for currencies with a devaluation of above 50% between the two comparable periods, for which the current year average rate is applied to the prior year baseline) Organic sales are then divided by the prior period sales at constant scope to derive the organic growth percentage. A numerical reconciliation of this APM is included below: (CHF million) Sales Q3 2024 1 699 Scope effect from divestments -7 Sales Q3 2024 at constant scope 1 692 Organic growth 102 Scope effect from acquisitions 40 Sales Q3 2025 at constant currency 1 834 Currency impact -105 Sales Q3 2025 1 729 (CHF million) Sales 9M 2024 5 034 Scope effect from divestments -15 Sales 9M 2024 at constant scope 5 019 Organic growth 277 Scope effect from acquisitions 95 Sales 9M 2025 at constant currency 5 391 Currency impact -240 Sales 9M 2025 5 151 Constant currency The constant currency calculation is used in order to assess the period over period evolution of financial indicators without the currency impact. SGS calculates constant currency measures by translating the current year numbers at prior year average exchange rates (except for currencies with a devaluation of above 50% between the two comparable periods, for which the current year average rate is applied to the prior year baseline). Adjusted operating income The adjusted operating income is provided to assess the underlying financial and operational performance of the Group excluding the influence of items not directly attributable to operational performance. Adjusted operating income represents the operating income excluding: • Amortization and impairment expenses on intangibles arising as a result of acquisitions • Impairment expenses on goodwill
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SGS | Q3 2025 sales update 8 • Restructuring costs including impairment charges arising from the execution of restructuring plans • Gains and losses from business disposals • Acquisition- and divestment-related expenses including integration costs • Other non-recurring items, e.g. non-operational items such as certain regulatory, compliance and legal costs and certain asset write-downs/impairments Free cash flow The free cash flow is deemed an important measure by management as it shows the ability to generate cash after the investment in assets necessary to support the existing operating activities. The Group defines free cash flow as: Net cash flow from operating activities, Less net purchase of property, plant and equipment and of other intangible assets, Less lease payments, Less interests paid, net of interests received. Cash conversion Cash conversion ratio provides management with a measurement of the Group’s ability to convert operational results in cash. The ratio is calculated by comparing the free cash flow to the EBITDA (operating income before depreciation, amortization and impairment) minus lease payments. 2024 sales by quarter Minor reclassifications of 2024 sales have been performed to be fully comparable with current business line allocation. Comparable with 2025 business allocation (CHF million) Q1 Q2 Q3 Q4 2024 Industries & Environment 515 586 545 568 2 214 Natural Resources 395 424 413 422 1 654 Connectivity & Products 305 341 339 344 1 329 Health & Nutrition 192 211 211 222 836 Business Assurance 170 196 191 204 761 Total 1 577 1 758 1 699 1 760 6 794 Published in 2024 (CHF million) Q1 Q2 Q3 Q4 2024 Industries & Environment 526 598 557 580 2 261 Natural Resources 386 413 403 410 1 612 Connectivity & Products 294 329 327 332 1 282 Health & Nutrition 201 222 221 234 878 Business Assurance 170 196 191 204 761 Total 1 577 1 758 1 699 1 760 6 794 About SGS SGS is the world’s leading Testing, Inspection and Certification company. We operate a network of over 2,500 laboratories and business facilities across 115 countries, supported by a team of 99,500 dedicated professionals. With over 145 years of service excellence, we combine the precision and accuracy that define Swiss companies to help organizations achieve the highest standards of quality, compliance and sustainability. Our brand promise – when you need to be sure – underscores our commitment to trust, integrity and reliability, enabling businesses to thrive with confidence. We proudly deliver our expert services through the SGS name and trusted specialized brands, including Brightsight, Bluesign, Maine Pointe and Nutrasource. SGS is publicly traded on the SIX Swiss Exchange under the ticker symbol SGSN (ISIN CH1256740924, Reuters SGSN.S, Bloomberg SGSN:SW).
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SGS | Q3 2025 sales update 9 Shareholder Information Upcoming investor events 11 February 2026 Full year 2025 results 26 March 2026 Annual General Meeting 23 April 2026 Q1 2026 sales update 24 July 2026 Half year 2026 results 22 October 2026 Q3 2026 sales update Stock listing information Stock exchange trading SIX Swiss Exchange Stock exchange listing SGSN Common stock symbols Bloomberg: SGSN.SW Reuters: SGSN.S Telekurs: SGSN ISIN: CH1256740924 Swiss security number: 249745 Investor and media contacts Ariel Bauer Head of Communications, Investor Relations and Sustainability Tel: +41 79 863 49 23 Livia Baratta Deputy Head of Investor Relations Tel: +41 79 586 48 53 Email: sgs.investor.relations@sgs.com Headquarters information SGS SA 1 place des Alpes P.O. Box 2152 CH – 1211 Geneva 1 www.sgs.com Disclaimer This material is provided for information purposes only and is not intended to confer any legal rights to you. This document does not constitute an invitation to invest in SGS shares. Any decisions you make in reliance on this information are solely your responsibility. Because these statements involve risks and uncertainties that are beyond control or estimation of SGS, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These statements speak only as of the date of this document. Except as required by any applicable law or regulation, SGS expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in SGS Group’s expectations with regard thereto or any change in events or conditions on which any such statements are based.
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SGS | Q3 2025 sales update 10 © SGS Société Générale de Surveillance SA. (2025) SGS Headquarters 1 Place des Alpes P .O. Box 2152 1211 Geneva 1 Switzerland sgs.com