GF’s products are used, among other things, in piping solutions for residential and commercial buildings, as well as in various industrial end markets such as data center cooling and infrastructure.

Strategic transformation in focus
At the beginning, CEO Andreas Müller and CFO Mads Joergensen presented the company’s current development and were then available for questions. The discussions centered on GF’s comprehensive transformation: with the divestment of the Casting Solutions and Machining Solutions divisions, the company will in future focus entirely on the Flow Solutions segment.

Flow Solutions comprises piping systems for the safe and sustainable transport of water, chemicals, and gas. This is a market with long-term growth potential, particularly against the backdrop of urbanization, infrastructure investment, and sustainability.

By focusing on Flow Solutions as a “pure-play” provider, GF expects to achieve a more efficient cost structure and a less cyclical business model over the long term. For 2026, the company expects organic revenue growth in the low single-digit percentage range (in local currencies), an adjusted EBIT margin of 10.5–12.5%, and cost savings of around CHF 40 million. In the future, guidance will be communicated in terms of comparable EBITDA (14–16% for 2026).

Insights into modern production and innovation
Following the presentation, we gained insights into the production of the Flow Solutions division as well as the showroom during a site visit. Particularly impressive was the high degree of automation in manufacturing: a large portion of production processes runs by machine and largely autonomously.

We were also able to observe new, more powerful production machines in operation, contributing to increased efficiency and quality assurance. The showroom provided a clear overview of GF’s broad product portfolio and technological solutions. The visit concluded with a convivial apéro riche, offering an opportunity to reflect on the day’s impressions in a relaxed atmosphere and to continue discussions among participants.

Outlook and valuation
GF is currently in a year of transformation and transition. The strategic repositioning is clear and understandable, and the presented corporate strategy is convincing. In the short term, one-off effects from the divestments may weigh on results, but in the medium term, growth potential emerges.

The company possesses highly specialized technologies that are difficult for competitors to replicate, as well as locally anchored production structures. In the event of an economic recovery, capacities could be ramped up quickly.

In the 2025 financial year, GF achieves an EBITDA/Capex ratio of 2.2x as well as a double-digit ROIC—evidence of efficient capital allocation compared to industry peers. As Flow Solutions is structurally less capital-intensive than the divested business units, and GF itself estimates Capex for 2026 at around CHF 100 million, this valuation profile is expected to improve going forward.

Based on FY2026 estimates, the stock is trading at a P/E ratio of 19.9x, with expected revenue growth in the low single-digit percentage range (in local currencies). Whether this valuation level is supported by margin potential or cyclical dynamics remains a key question for investors. Overall, GF is well positioned to leverage its strengths over the long term and continue to develop successfully in the market.