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Lower Sales, Lower Margins
Forbo feels the construction slump and looks for new fields
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The Swiss industrial group Forbo is one of the quieter heavyweights in the sector. Flooring and industrial conveyor belts may not sound particularly glamorous, but economically they are closely tied to construction projects, renovations, and industrial investment. And that is exactly where things are currently slowing down — something that is now clearly reflected in the company’s 2025 results.
Group revenue fell to CHF 1.085 billion, a decline of 3.3 percent. Profitability took a much sharper hit: EBIT dropped by more than a quarter to CHF 87.8 million, while the margin slipped from 10.7 to 8.1 percent. In short: lower utilization, rising costs — and a strong Swiss franc that rarely helps in export markets.
Europe remains the company’s most important market. Roughly two-thirds of revenue is generated there, with Germany among the larger individual markets. While business in Europe held up relatively well, other regions were weaker. In particular, the Americas and parts of Asia are feeling the effects of a sluggish construction and investment environment.
Operationally, Forbo continues to rely on two pillars: the Flooring Systems division and the Movement Systems division, which produces conveyor and transport belts for industry. The larger share of profits still comes from flooring — and therefore ultimately from construction projects, renovation activity, and the contract market.
A newer development, however, is the company’s attempt to position its materials more strongly in the furniture and interior sector. With its product “Furniture Linoleum,” Forbo is increasingly marketing its traditional linoleum as a surface material for furniture, table tops, and kitchen fronts. The material is positioned as a sustainable alternative to laminates or plastic surfaces, targeting designers, architects, and contract furniture manufacturers.
The idea behind it is obvious: when construction slows, applications in the interior and furniture sectors could generate additional demand. For now, however, this business remains more of a design and architecture niche than a second major pillar for the group.
Strategically, Forbo therefore continues to focus on innovation, efficiency, and international expansion. At the same time, the company is currently operating with a largely new leadership team. Johannes Huber has been leading the group as CEO since January, and Heinz Hössli is set to take over as the new CFO this summer.
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The Swiss industrial group Forbo is one of the quieter heavyweights in the sector. Flooring and industrial conveyor belts may not sound particularly glamorous, but economically they are closely tied to construction projects, renovations, and industrial investment. And that is exactly where things are currently slowing down — something that is now clearly reflected in the company’s 2025 results.
Group revenue fell to CHF 1.085 billion, a decline of 3.3 percent. Profitability took a much sharper hit: EBIT dropped by more than a quarter to CHF 87.8 million, while the margin slipped from 10.7 to 8.1 percent. In short: lower utilization, rising costs — and a strong Swiss franc that rarely helps in export markets.
Europe remains the company’s most important market. Roughly two-thirds of revenue is generated there, with Germany among the larger individual markets. While business in Europe held up relatively well, other regions were weaker. In particular, the Americas and parts of Asia are feeling the effects of a sluggish construction and investment environment.
Operationally, Forbo continues to rely on two pillars: the Flooring Systems division and the Movement Systems division, which produces conveyor and transport belts for industry. The larger share of profits still comes from flooring — and therefore ultimately from construction projects, renovation activity, and the contract market.
A newer development, however, is the company’s attempt to position its materials more strongly in the furniture and interior sector. With its product “Furniture Linoleum,” Forbo is increasingly marketing its traditional linoleum as a surface material for furniture, table tops, and kitchen fronts. The material is positioned as a sustainable alternative to laminates or plastic surfaces, targeting designers, architects, and contract furniture manufacturers.
The idea behind it is obvious: when construction slows, applications in the interior and furniture sectors could generate additional demand. For now, however, this business remains more of a design and architecture niche than a second major pillar for the group.
Strategically, Forbo therefore continues to focus on innovation, efficiency, and international expansion. At the same time, the company is currently operating with a largely new leadership team. Johannes Huber has been leading the group as CEO since January, and Heinz Hössli is set to take over as the new CFO this summer.