BELIMO's Data Center Surge Lifts H1, but Guidance Goes Quiet

A Quarter Defined by Data Centers

BELIMO Holding AG delivered a blockbuster first half, with sales up ~30% in local currency to CHF 676 million. The story is unmistakably data centers: data center growth now accounts for roughly a quarter of group turnover, up from 18% just six months ago. “data center accounts for about 23%-24% of the overall turnover of BELIMO, further increasing the share from 18% in the second half year of last year.” — Markus Schürch, Chief Financial Officer · 2026-07-20 The shift toward liquid cooling is the main driver, with the Americas already fully liquid-cooled in new builds.

Regionally, the Americas remain the growth engine, with local currency growth of 35%, while Asia-Pacific surged 58% thanks to OEM export business feeding U.S. data center construction. EMEA grew 14% despite a weak construction market, driven by renovation and emerging data center projects.

The company's new stainless steel Energy Valve, designed specifically for data centers, underscores its technological leadership. CEO Markus Schürch noted, “We are the technology leader. We have got a lot of first-mover advantages.” — Markus Schürch, Chief Financial Officer · 2026-07-20 This product is mix-accretive and positions BELIMO to capture more value per rack as heat densities rise.

Underneath the top-line strength, management carefully managed two headwinds: tariffs and FX. The FX effect alone knocked 9.2% off Swiss franc sales, yet pricing actions largely offset it. “pricing was there almost able to offset the FX effect.” — Markus Schürch, Chief Financial Officer · 2026-07-20 On tariffs, the company has built a contingent asset of CHF 1.3 million with a potential upside of CHF 30 million, awaiting clarity on the future U.S. tariff regime.

The Cost of Growth

The surge in demand has required significant capacity expansion and a step-up in net working capital. Free cash flow dipped as receivables grew with sales. Management expects working capital to stabilize and then optimize over the next two years. Capital expenditure remains elevated, with management guiding to similar levels in 2027 and 2028.

On the operations side, the company continues to advance its RetroFIT+ initiative, which generates 60%+ of EMEA sales. RetroFIT+ projects with paybacks under three years are a powerful selling point in a soft new-construction market. EBIT margin held at 22.5%, and return on capital employed remains a stellar 41%.

Guidance Goes Quiet

Perhaps the most notable change is the decision to drop quantitative top-line guidance. In the prior call, management reaffirmed a 9-11% medium-term growth target, but for H2 they now say, “We expect a very strong growth in the second half year as well.” — Markus Schürch, Chief Financial Officer · 2026-07-20 Yet when pressed, CFO Markus Schürch explained, “Obviously, when we have got more certainty and the less volatile market, we'll come back then to a quantitative guidance, yes.” — Sebastian Vogel, Analyst · 2026-07-20 This reflects the genuine uncertainty around the pace of data center deployment and the political environment.

The quantitative guidance pullback is a striking contrast with prior quarters, where management was more specific about growth ranges. It signals that even a company with such strong momentum is hedging against execution and tariff uncertainty.

What we see is no stocking in the industry, it's basically just build and then ship. That's really the build-out of data center that is driving the sales there, and no stocking at our customers.

BELIMO's experience is mirrored across the market. Global tape shows strength in high-bandwidth memory, co-packaged optics, and other AI infrastructure themes. The company's data center ramp is part of a broader wave, but its unique position in liquid cooling and control valves gives it a specific edge.

In summary, BELIMO has executed brilliantly, but the real story is the strategic pivot toward data centers and the disciplined management of costs and guidance. The shift from 18% to 24% data center exposure in just six months is remarkable and sets up the company for continued outperformance, albeit with increased cyclicality tied to hyperscaler capital spending.

In the February call, management had already flagged the acceleration: “we stay with this 9% to 11% because you have, of course, an acceleration in growth over the next years.” — Markus Schürch, CFO · 2026-02-23 Now that acceleration has arrived, and the question is how long it persists. The June/July pace, while not disclosed, is described as "very strong," supporting the view that demand remains robust into H2.

From the July 2025 call, the company already saw the data center contribution rising: “data center is growing ahead of the rest of the business.” — Markus Schürch, CEO · 2025-07-21 That trend has intensified.