Earnings release
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Embedded systems cybersecurity testing, Netherlands Third quarter 2026 sales update
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SGS | Q3 2026 sales update Third quarter 2026 sales update Record Q3 sales growth of 14.6%, 5.7% organic Ad hoc announcement pursuant to article 53 LR Baar, 23 October 2026 • Record Q3 sales of CHF 1 982 million, up 14.6% • Strong organic1 growth of 5.7%, scope effect of 6.9% and favorable currency impact of 2.0% • Double-digit growth in DIGITAL TRUST and IMPACT NOW • Sustained M&A activity including the acquisition of the US cybersecurity expert, Prescient Security • Outlook 2026 confirmed Géraldine Picaud, Chief Executive Officer, commented: “SGS delivered its highest-ever quarterly sales increase in Q3, supported by strong organic growth and the continued contribution from acquisitions. This performance demonstrates the successful execution of Strategy 27 and the strength and resilience of our multi-specialist model. We achieved double-digit growth in DIGITAL TRUST and IMPACT NOW. I want to thank the teams for their energy and expertise which make the success of our group. I also warmly welcome the talents joining us through our acquisitions.” Group sales (CHF million) Q3 2025 Q3 2026 Sales 1 729 1 982 Total change 14.6% of which organic 5.7% of which scope 6.9% of which FX 2.0% Group sales by region (CHF million) Organic growth Q3 2026 Asia Pacific 9.3% 594 Europe 2.4% 507 North America 5.4% 285 Latin America 7.0% 193 Eastern Europe, Middle East & Africa 5.1% 190 Testing & Inspection 5.9% 1 769 Business Assurance 4.2% 213 Total Group 5.7% 1 982 1 Refer to Alternative Performance Measures in the Appendix
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SGS | Q3 2026 sales update 2 Q3 2026 sales review Sales reached CHF 1 982 million in Q3 2026, an increase of 14.6% compared with prior year. The performance was driven by strong organic growth of 5.7%, a positive net scope effect of 6.9% and a favorable foreign exchange effect of 2.0%. Testing & Inspection delivered strong organic sales growth of 5.9%, supported by all business lines. Business Assurance achieved organic sales growth of 4.2%, with continued momentum in Sustainability services and Digital Trust Assurance. Double-digit growth in SGS DIGITAL TRUST and IMPACT NOW SGS DIGITAL TRUST grew by 37%, continuing to strengthen its market position through targeted acquisitions, innovation and regulatory leadership. The acquisitions of majority stakes in Prescient Security and NetSentries significantly expanded enterprise cybersecurity, cyber-risk management and digital compliance capabilities. Together, they enhance SGS’s expertise in the certification of information security, financial integrity, payment security, data protection and support the continued development of the SGS DIGITAL TRUST ecosystem. The group’s leadership in connected-product cybersecurity was further reinforced as Brightsight was the first organization to achieve ISO/IEC 17065 accreditation, a major milestone to become a designated Notified Body under the EU Cyber Resilience Act. SGS delivered the first health software cybersecurity certification under the IECEE CB scheme. Granite River Labs also secured key client wins in connected-product testing. IMPACT NOW grew by 23%, further expanding its portfolio of assurance and compliance solutions in response to evolving regulatory requirements. Accreditation for the Carbon Border Adjustment Mechanism (CBAM) enhanced SGS’s ability to provide trusted carbon compliance verification across global supply chains. SGS also launched an integrated offering for the EU Packaging and Packaging Waste Regulation, combining materials and chemicals testing, including PFAS and heavy metals, with recyclability assessments, recycled-content verification, traceability and compliance expertise. The solution helps clients transition to more circular packaging while maintaining market access. In addition, SGS launched a readiness solution for the EU Deforestation Regulation and issued its first sustainable biomass certificates, supporting clients in meeting increasingly complex traceability and sustainability requirements. Mergers and Acquisitions SGS continued to execute its acquisition strategy in Q3. Following the 14 acquisitions completed during the first half of 2026, the Group added four more companies to its portfolio, bringing the total to 18 acquisitions year to date and further strengthening its position in high-growth, high-margin segments: • Dominios Eléctricos (DOEL) – a specialist in testing, inspection and technical assistance for electricity transmission and distribution networks, supporting critical electrical infrastructure and grid modernization projects. • Konatec – a mining technology company specializing in real-time rheology measurement and AI-powered analytics, helping mining operations improve recovery, water and energy efficiency, and operational continuity. • NetSentries – a cybersecurity specialist providing security assessment, advisory and cyber-risk management services, supported by an AI-driven solution that helps organizations identify, assess and manage cyber risk. • Prescient Security – a leading provider of information compliance and cybersecurity services, specializing in the certification of information security, financial integrity, payment security, data protection and cybersecurity. Together, bolt-on acquisitions announced to date in 2026 represent total annual sales of over CHF 150 million.
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SGS | Q3 2026 sales update 3 Bolt-on acquisitions to date Effective date Location Business line FTE Panacea Infosec January 2026 India Business Assurance 92 MsMin January 2026 Chile Industries & Environment 185 Murray-Brown Laboratories January 2026 USA Health & Nutrition 16 Information Quality January 2026 Australia Industries & Environment 111 Cyanre Group February 2026 South Africa Connectivity & Products 33 Granite River Labs Services March 2026 USA Connectivity & Products 231 Trident March 2026 USA Industries & Environment 22 OSGAPI April 2026 France Industries & Environment 21 Alverad April 2026 Hungary Industries & Environment 28 Techcorp Services May 2026 Australia Industries & Environment 35 K Prime May 2026 USA Industries & Environment 22 Keystone Bioanalytical May 2026 USA Health & Nutrition 17 CMIC Inc. June 2026 USA Health & Nutrition 51 Agroknow July 2026 Greece Business Assurance 32 Dominios Eléctricos (DOEL) August 2026 Spain Industries & Environment 30 Konatec September 2026 Chile Natural Resources 26 NetSentries September 2026 United Arab Emirates Connectivity & Products 130 Prescient Security October 2026 USA Business Assurance 350 Beyond bolt-on acquisitions, SGS had previously announced that the divestment of its Crop Science operations to Eurofins would not proceed, as the purchase agreement was terminated. SGS welcomes the final award recently rendered by the International Chamber of Commerce arbitral tribunal in the arbitration commenced by Eurofins following the termination. The tribunal dismissed all claims asserted by Eurofins and confirmed the validity of SGS's position. Accordingly, the Crop Science operations remain with SGS and the matter is now conclusively resolved. Management changes Gabriel Julia was appointed Head of Health & Nutrition and a member of the Executive Committee, effective 1 October 2026. He is a seasoned expert with more than 15 years of experience in the Testing, Inspection and Certification industry. Outlook 2026 SGS confirms its 2026 outlook: • 5% to 7% organic sales growth • Growth from acquisitions around 7% • ≥ 16% adjusted operating income1 margin on sales, in reported terms • > 50% cash conversion1 • Capital Markets Event to be held in Berlin on 17 and 18 November 2026 Conference call A live webcast for analysts and investors will be held on 23 October 2026 at 10:00 am CET. Details of the webcast can be found below: https://event.choruscall.com/mediaframe/webcast.html?webcastid=jlAPRlHe A recording of the webcast will be available on sgs.com later in the day. 1 Refer to Alternative Performance Measures in the Appendix
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SGS | Q3 2026 sales update 4 Business line performance Testing & Inspection: Industries & Environment Industries & Environment delivered solid organic growth of 3.6%, driven by Inspection and Environment: • Environment delivered strong growth across North America, Asia Pacific and Europe, driven by demand for testing and field services. • Inspection & Supervision and Safety recorded high single-digit growth, supported by new projects in Asia Pacific and Latin America. • Industrial Testing delivered a softer performance, affected by the situation in the Middle East and a high basis of comparison. • Acquisitions continued to perform strongly, including ATS. Testing & Inspection: Natural Resources Natural Resources delivered strong organic growth of 6.2%, led by Minerals. • Minerals reported double-digit organic growth, supported by all regions. • Momentum continued in geochemistry, complemented by excellent performance in minerals trade services across all commodities. • Agriculture delivered a stable performance despite seasonal challenges in Europe and the effects from geopolitical uncertainty. • Oil, Gas and Chemicals remained resilient as double-digit organic growth in North America and Latin America offset business disruptions in the Middle East. (CHF million) Q3 2026 9M 2026 Sales 697 2 009 Total change 21.4% 18.0% of which organic 3.6% 4.4% of which scope 15.7% 17.0% of which FX 2.1% -3.4% (CHF million) Q3 2026 9M 2026 Sales 448 1 290 Total change 10.6% 7.0% of which organic 6.2% 5.8% of which scope 1.7% 3.0% of which FX 2.7% -1.8%
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SGS | Q3 2026 sales update 5 Testing & Inspection: Connectivity & Products Connectivity & Products posted excellent organic growth of 9.2%, led by Connectivity, Hardlines and Softlines: • Connectivity delivered high single-digit organic growth, led by wireless testing, cybersecurity and automotive technical services. • Softlines recorded double-digit organic growth, driven by new regulations in Europe and North America and increased consumer awareness. • Hardlines reported double-digit organic growth, with renewed momentum in toys and strong demand for food contact materials testing. • Trade Facilitation Services was affected by softer demand resulting from disruptions in trade flows related to the Middle East. Testing & Inspection: Health & Nutrition Health & Nutrition delivered strong organic growth of 6.2%, driven by Food: • Food recorded double-digit organic growth, fueled by strong demand for food safety and food advisory & labelling services. • Contaminants testing maintained the momentum seen in the first half. • Pharma recorded moderate growth, with double-digit increase in Biosafety. • Cosmetics & Personal Care posted solid organic growth, supported by improved activity across regions. (CHF million) Q3 2026 9M 2026 Sales 385 1 071 Total change 13.7% 6.0% of which organic 9.2% 7.6% of which scope 2.2% 2.0% of which FX 2.3% -3.6% (CHF million) Q3 2026 9M 2026 Sales 239 680 Total change 9.6% 3.4% of which organic 6.2% 5.1% of which scope 2.5% 1.6% of which FX 0.9% -3.3%
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SGS | Q3 2026 sales update 6 Certification: Business Assurance Business Assurance achieved solid organic growth of 4.2%, led by Sustainability & Digital Trust: • Certification activity grew moderately, impacted by audit delays due to extreme weather conditions in East Asia. • Sustainability recorded high single-digit organic growth, driven by circularity and nature services. • Digital Trust assurance posted double-digit growth, driven by increasing global demand for information security, cybersecurity and AI assessments. • Training was soft due to the late release of new ISO standards. (CHF million) Q3 2026 9M 2026 Sales 213 615 Total change 10.3% 7.4% of which organic 4.2% 6.2% of which scope 4.8% 4.8% of which FX 1.3% -3.6%
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SGS | Q3 2026 sales update 7 Appendix Alternative Performance Measures For the period ended 30 September 2026 This section 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 of the information included in our IFRS consolidated financial statements is presented. Management considers these performance measures 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 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: Results from acquisitions are excluded for the 12 months following the date of a business combination, while results generated by a divested or discontinued operation are excluded for the 12-month period prior to the change in scope. • 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 2025 1 729 Scope effect from divested / discontinued operations -7 Sales Q3 2025 at constant scope 1 722 Organic growth 98 Scope effect from acquisitions 126 Sales Q3 2026 at constant currency 1 946 Currency impact 36 Sales Q3 2026 1 982 Organic growth 5.7% Constant currency The constant currency calculation is used to assess the period-over-period evolution of financial indicators excluding the impact of currency movements. 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 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 • 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 may include non-operational items such as certain regulatory, compliance and legal costs and certain asset write-downs/impairments and remeasurement gains on business combinations
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SGS | Q3 2026 sales update 8 Free cash flow 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. In 2023, management included interest paid and interest received in the Free cash flow calculation. It includes the cash effects of restructuring costs, and is calculated as follows: 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 The cash conversion ratio provides management with a measure of the Group’s ability to convert operational results into cash. The ratio is calculated by comparing free cash flow with EBITDA (operating income before depreciation, amortization and impairment) minus lease payments. 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 over 100,000 dedicated professionals. With more than 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 a portfolio of trusted specialized brands, including Applied Technical Services, Brightsight, Bluesign 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 2026 sales update 9 Shareholder Information Upcoming investor events 17-18 November 2026 Capital Markets Event 11 February 2027 FY 2026 results 24 March 2027 Annual General Meeting 23 April 2027 Q1 2027 sales update 23 July 2027 Half year 2027 results 22 October 2027 Q3 2027 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 Tel: +41 79 863 49 23 Fiona Flannery Head of Media Relations Tel: +41 79 570 76 43 E: sgs.investor.relations@sgs.com E: MediaPR@sgs.com Headquarters information SGS SA Zugerstrasse 57 6340 Baar Switzerland www.sgs.com Disclaimer This document does not constitute an invitation to invest in SGS shares. Any decisions you make in reliance on the information contained herein are solely your responsibility. Certain matters presented in this document may constitute forward-looking statements that are neither historical facts nor guarantees of future performance. These forward-looking statements reflect current assumptions, expectations and views of the management and are subject to known and unknown risks and uncertainties that are beyond the control or estimation of SGS and there are important factors that could cause actual results to differ materially from those expressed or implied by such 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 publicly update or revise any forward-looking statements contained herein to reflect any change in SGS’s expectations or events or circumstances after the date of this document. Further information on potential risk factors is contained in SGS's Integrated Report.
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