Swiss-listed R&S Group may not be a household name for every investor. Yet around three years ago, the company took a unique route to the Swiss stock market. Rather than opting for a traditional IPO, R&S went public through a structure that was new to Switzerland at the time. In December 2023, the transformer manufacturer merged with VT5 Acquisition Company, the first Swiss SPAC listed on SIX Swiss Exchange. The shares debuted at CHF 10.30, giving the company a market capitalisation of around CHF 267 million. What had initially been an empty listed shell was transformed into an industrial hidden champion and a comparatively young Swiss equity story for investors.
R&S draws on more than 100 years of experience in power engineering and operates production facilities across Europe, South America and the Middle East. The Group manufactures oil-immersed distribution transformers, cast resin transformers and power transformers. Around half of the portfolio consists of oil-immersed distribution transformers, while the other two product categories each account for roughly one quarter. Its products are used in power grids, industrial facilities, wind and solar parks, battery storage systems, railway projects, airports and data centres, among other applications. R&S is classified as a Tier 3 manufacturer. Rather than being a global full-range supplier covering the highest voltage and power classes, the company is a specialised and agile manufacturer of distribution transformers and medium-sized power transformers. Its power transformer portfolio covers units with ratings of up to 160 MVA and voltages of up to 220 kV.
Operationally, the past financial year generated far more energy than the share price. While the stock ended 2025 slightly in negative territory, revenue surged by 47% to CHF 414.8 million. However, this increase is only partially comparable due to the acquisition of Kyte Powertech, which was consolidated only from 20 August in the previous year. The more meaningful figure is the organic revenue growth of 8.6%. This was mainly driven by higher sales volumes of power transformers and cast resin transformers. Earnings also improved, although margins eased from the exceptionally strong level recorded in the previous year. EBITDA increased by 28%, while the EBITDA margin declined from 23.9% to 20.9%, reflecting, among other factors, the full-year consolidation of Kyte Powertech.
The strongest support for R&S's continued growth trajectory comes from its order intake. New orders increased by 56% to CHF 476.8 million, while the order backlog expanded by 17% to CHF 325.7 million. Over the past twelve months, the book-to-bill ratio exceeded one in every single month. By the end of February 2026, the backlog had already risen to more than CHF 337 million. Visibility is particularly strong in the power transformer business, where the order book extends into the first quarter of 2028. R&S intends to meet this robust demand through additional production capacity. The plant for oil-immersed distribution transformers in Bochnia, Poland, is therefore continuing to ramp up production. Meanwhile, the new factory in Łódź is scheduled to commence operations in the fourth quarter of 2026, with first deliveries expected in 2027. Additional capacity expansions for cast resin transformers are also underway in Abu Dhabi, Italy and Poland.
The Group sees significant growth opportunities in data centres, battery energy storage systems, photovoltaic installations, the electrification of ports and power transformers for renewable energy projects in Germany. Over its rolling three-year planning horizon, management targets annual organic revenue growth of 8% to 12% and an EBITDA margin of 19% to 21%. While R&S has not provided a specific earnings target, it intends to pay a dividend of CHF 0.50 per share. Investors are likely to gain greater clarity on the current financial year when the company publishes its first-half trading update on 5 August. The full half-year report will follow on 16 September.
Despite the company's operational momentum, the share price has shown little direction in recent months and has largely traded sideways. For investors who expect neither a sharp breakout nor a significant decline, a Barrier Reverse Convertible may therefore represent an attractive alternative to a direct investment. Leonteq is currently offering a one-year product for subscription until 31 July. The coupon of 15.53% p.a. provides an attractive return even if the share price remains broadly unchanged. Coupons are paid quarterly, while the first observation date for early redemption takes place after six months. The barrier is set at 59% of the initial fixing level, a level the share price has not fallen below since 2024.
Leonteq also offers an attractive range of derivatives for more trading-oriented investors. Using long or short leverage products, investors can position themselves for either rising or falling R&S share prices ahead of the anticipated trading update. The current product range includes five Mini Futures. However, leverage works in both directions: the potential for above-average gains is accompanied by correspondingly high risks of loss.
We look forward to answering all of your questions about our products and how they are traded. Please don't hesitate to get in touch! Phone: 058 800 11 11, email info@leonteq.com or contact us here.