SGS SA (SIX: SGSN)

Quick Facts / Company Snapshot

• Company Name: SGS SA
• Headquarters: Baar, Switzerland
• Year Founded: 1878
• Founder: Henri Goldstuck
• Total Employees: 102,804 dedicated team members
• Global Reach: 115 countries
• Network Size: 2,456 laboratories and business facilities
• 2025 Total Sales: CHF 6,945 million
• 2025 Organic Sales Growth: 5.6%
• 2025 Adjusted Operating Income (AOI): CHF 1,108 million
• 2025 AOI Margin: 16.0%
• 2025 Free Cash Flow (FCF): CHF 774 million
• 2025 Earnings Per Share (EPS): CHF 3.21
• Cash Conversion Rate: 57%
• CEO: Géraldine Picaud
• Chair of the Board: Calvin Grieder
• Business Segments: Industries & Environment, Natural Resources, Connectivity & Products, Health & Nutrition, Business Assurance
• Sustainability Strategy: IMPACT NOW targeting CHF 1.0 billion in sales by 2027
• Digital Target: CHF 350 million in digital trust sales by 2027
• Stock Exchange Listing: SIX Swiss Exchange (Ticker: SGSN)

Company overview

SGS SA is the world’s leading Testing, Inspection, and Certification (TIC) company, providing essential services that ensure quality, safety, and compliance across a multitude of industries. The organization operates an extensive global network comprising 2,456 laboratories and business facilities distributed across 115 countries. This robust physical footprint is supported by a dedicated workforce of 102,804 professionals who deliver precision and accuracy rooted in the company’s Swiss heritage.

• Network size: Over 2,450 laboratories and facilities globally.
• Professional workforce: More than 102,000 dedicated team members worldwide.
• Expertise level: Over 75% of the workforce possesses high professional expertise.
• Global reach: Operations span 115 countries, ensuring localized support with international scale.

The company’s operations are fundamentally structured to help organizations achieve the highest standards of quality, compliance, and sustainability. Through testing, SGS demonstrates that products and materials meet stringent health, safety, and regulatory requirements. The inspection division assesses quantity and quality to aid businesses in regulatory compliance, while certification services confirm that products, services, processes, and systems adhere to both international and local standards.

• Service integration: Testing, inspection, and certification represent the core service pillars.
• Brand promise: The commitment “when you need to be sure” underscores trust, integrity, and reliability.
• Strategic focus: Capitalizing on megatrends such as the sustainability transition and digital acceleration.

By executing its strategic blueprint known as “Strategy 27,” SGS aims to accelerate growth and build trust. This forward-looking approach targets specific industry megatrends, including powerful sustainability transitions, innovations in digital capabilities, the nearshoring of supply chains, and increasing regulatory demands. The integration of advanced technologies and customized advisory services positions the company at the forefront of global conformity assessment.

Business segments

The operations of the company are organized into two primary divisions: Testing and Inspection, and Certification. Within these divisions, services are structured into distinct business lines that directly reflect the end-markets they serve. This segmentation allows for specialized expertise and tailored service delivery.

• Total 2025 Sales: CHF 6,945 million generated across all business segments.
• Testing & Inspection Sales: CHF 6,165 million, representing the majority of operational revenue.
• Certification Sales: CHF 780 million, functioning as the Business Assurance segment.

Industries & Environment

The Industries & Environment segment facilitates the sustainable energy transition through expert testing, inspection, certification, and advisory services. This business line helps clients adapt to supply chain developments, meet environmental, social, and governance (ESG) requirements, and ensure compliance with evolving regulations.

• 2025 Sales: CHF 2,295 million, making it the largest segment by revenue.
• Revenue Contribution: Accounts for 33% of the total consolidated sales.
• Adjusted Operating Income: CHF 300 million in 2025, up from CHF 267 million in 2024.
• AOI Margin: 13.1%, representing an improvement from 12.1% in the prior year.

Operational scope encompasses environmental management, safety assurance, project advisory, and industrial testing. By providing innovative solutions such as airborne eDNA biodiversity assessments, the segment enables organizations to manage operational risks, enhance worker safety, and strengthen their decarbonization efforts.

Natural Resources

The Natural Resources segment enhances resource sustainability, safety, and productivity by providing comprehensive inspection, testing, and consulting services. This division serves the minerals, agriculture, and oil, gas, and chemicals (OGC) sectors.

• 2025 Sales: CHF 1,636 million, solidifying its position as the second-largest segment.
• Revenue Contribution: Represents 24% of the total consolidated sales.
• Adjusted Operating Income: CHF 223 million, demonstrating strong operational efficiency.
• AOI Margin: 13.6%, reflecting a slight adjustment from 14.4% in 2024.

This segment leverages advanced technologies such as artificial intelligence, blockchain, and robotization to support clients through laboratory outsourcing, commodities logistics, geochemistry, and market intelligence. It actively assists organizations in reducing risk and promoting sustainable sourcing practices across global supply chains.

Connectivity & Products

Connectivity & Products drives innovation, safety, performance, and secure connectivity through comprehensive testing and certification services. This division supports clients across diverse industries, including automotive, electronics, cybersecurity, hardlines, and softlines.

• 2025 Sales: CHF 1,352 million, reflecting sustained consumer and technological demand.
• Revenue Contribution: Comprises 19% of the total consolidated sales.
• Adjusted Operating Income: CHF 308 million, marking the highest profitability among segments.
• AOI Margin: 22.8%, showcasing an exceptional return on sales.

By simplifying regulatory demands and minimizing market access risks, this segment ensures that products meet the highest standards of performance and compliance. Significant achievements include pioneering active implantable medical device (AIMD) testing and advancing deep brain stimulator compliance.

Health & Nutrition

The Health & Nutrition segment supports the global demand for safe, high-quality food, pharmaceutical, and cosmetic products. It integrates advanced analytical testing, inspection, certification, and advisory services to navigate complex regulatory landscapes.

• 2025 Sales: CHF 882 million, showing steady growth from CHF 835 million in 2024.
• Revenue Contribution: Accounts for 13% of the total consolidated sales.
• Adjusted Operating Income: CHF 124 million, representing a notable increase from the previous year.
• AOI Margin: 14.1%, improving significantly from 11.4% in 2024.

This division accelerates product development and strengthens consumer trust by verifying product safety, authenticity, and efficacy. Innovations such as non-invasive imaging technology for skin barrier testing highlight its commitment to scientific advancement and regulatory substantiation.

Business Assurance

Operating as the sole business line within the Certification division, Business Assurance helps organizations thrive by improving performance, managing risk, and embedding sustainability into daily operations.

• 2025 Sales: CHF 780 million, driven by strong demand for ESG and digital trust certifications.
• Revenue Contribution: Represents 11% of the total consolidated sales.
• Adjusted Operating Income: CHF 153 million, maintaining consistent profitability.
• AOI Margin: 19.6%, highlighting the high-value nature of certification services.

The segment provides certification and business enhancement solutions that address global standards, including cybersecurity, artificial intelligence, and carbon emissions measurement. Through programs like The PLEDGE on Food Waste, it empowers clients to turn environmental ambition into measurable, certified action.

History and evolution

The origins of the enterprise date back to 1878 when Henri Goldstuck founded the company in Rouen, France, initially focusing on inspecting French grain shipments to seize emerging opportunities in the agricultural trade. The business rapidly expanded, establishing new offices in major French ports such as Le Havre, Dunkirk, and Marseille by 1879.

• Founding year: Established in 1878 by Henri Goldstuck in Rouen, France.
• Headquarters relocation: Moved from Paris to Geneva, Switzerland, in 1915.
• Name adoption: The title Société Générale de Surveillance (SGS) was formally adopted in 1919.
• Public listing: The company went public on the stock exchange in 1981.

Throughout the 20th century, the company diversified its service offerings significantly. In 1955, it launched its Industrial Services business to inspect machinery and goods, followed by expansion into the oil, gas, chemical, and minerals sectors in 1962. Environmental consultancy services were introduced in the 1970s, establishing a foundation for the company’s long-term commitment to sustainability. Recent years have been marked by strategic acquisitions, including the purchase of Applied Technical Services (ATS) in 2026, which substantially increased the company’s footprint in North America. In November 2025, the corporate headquarters was relocated from Geneva to a centralized, business-friendly location in Baar, Switzerland.

Products and services

The core operations are fundamentally categorized into three primary service offerings: Testing, Inspection, and Certification. These services are delivered across all business segments and geographic regions, generating a total operational revenue of CHF 6,945 million in 2025.

• Total testing and inspection sales: CHF 6,165 million, representing 88.7% of total revenues.
• Total certification sales: CHF 780 million, representing 11.3% of total revenues.
• Sustainability services revenue: CHF 800 million proforma sales generated through the IMPACT NOW program.
• Digital trust revenue: CHF 260 million proforma sales derived from the DIGITAL TRUST framework.

Testing

Testing services form the cornerstone of the company’s analytical capabilities. Laboratory-based analyses evaluate compliance, quality, and safety across an extensive spectrum of products and materials.

• Operational model: Primarily lab-based sampling and in-depth chemical or physical analysis.
• Client value: Reduces operational risk and shortens time-to-market for consumer and industrial goods.

By confirming that products meet health, safety, and regulatory requirements, testing services provide critical data that underpins manufacturing and distribution decisions worldwide.

Inspection

Inspection services provide physical verification of quantity, quality, and compliance. These services are essential for trade facilitation and supply chain integrity.

• Operational model: Conducted via physical or remote site inspections utilizing advanced technologies.
• Client value: Ensures that organizations meet precise regulatory requirements across divergent international markets.

Whether assessing agricultural commodities or industrial machinery, inspection teams deliver independent validation that mitigates financial and operational risks for global trade.

Certification

Certification confirms that specific products, services, processes, and systems adhere strictly to recognized international and local standards.

• Operational model: People-based auditing, technical review, and continuous ongoing surveillance.
• Client value: Provides an internationally recognized seal of approval that bolsters consumer trust and market access.

The certification portfolio includes quality management systems, ESG assurance, cybersecurity frameworks, and artificial intelligence management systems (ISO/IEC 42001).

Brand portfolio

The enterprise delivers its expert services through its primary namesake and a strategic portfolio of trusted specialized brands that cater to specific technical niches and regional markets.

• Primary brand: SGS, the world’s leading Testing, Inspection, and Certification company.
• Digital Trust brands: Includes CertX, Brightsight, and streamlinecontrol.
• Recent brand integrations: 19 bolt-on acquisitions were closed in 2025, expanding the overall portfolio.

Applied Technical Services (ATS)

Acquired in early 2026, ATS is a premier provider of specialized testing, inspection, calibration, and forensics solutions in North America.

• Network: Operates 85 advanced facilities strategically located across the United States.
• Workforce: Employs 2,100 highly skilled technical professionals.
• Client base: Serves over 16,000 clients with an 80% repeat customer rate.

ATS significantly strengthens the company’s technical depth in regulated end-markets such as manufacturing, aerospace, and power generation, acting as a catalyst for regional revenue doubling.

Brightsight

Brightsight serves as a critical component of the Digital Trust framework, focusing predominantly on cybersecurity evaluation and certification.

• Strategic pillar: Anchors the Connected Products & Technologies digital trust offering.
• Market focus: Specializes in securing digital ecosystems and conducting rigorous hardware and software vulnerability assessments.

CertX

CertX is a specialized digital assurance brand that plays a pioneering role in the certification of Artificial Intelligence and functional safety systems.

• Key project: Selected as the primary assessment provider for the EU’s EUR 7.3 million RobustifAI project.
• Strategic collaboration: Partners with NVIDIA’s Halos AI Systems Inspection Lab to advance the safety of AI-powered autonomous vehicles.

Geographical presence

The organization maintains a pervasive global footprint, structurally divided into five distinct operational regions that manage localized service delivery and regulatory compliance. The balanced geographical distribution ensures resilience against localized economic downturns.

• Total global locations: 2,456 laboratories and business facilities.
• Total global workforce: 102,804 employees.
• Highest revenue region: Asia Pacific generated CHF 2,368 million in 2025.
• Largest non-current asset base: Europe holds CHF 1,876 million in specific non-current assets.

Asia Pacific

The Asia Pacific region serves as the primary engine for revenue generation, driven by robust manufacturing sectors, technological innovation, and expanding consumer markets.

• 2025 Sales: CHF 2,368 million.
• Revenue Contribution: Accounts for 34% of the total consolidated sales.
• Physical locations: 553 laboratories and offices.
• Workforce: 40,416 employees, representing the largest regional employee base.

The region sees exceptional organic growth in hardlines and softlines, benefiting from high demand for home appliances and supply chain realignment in Southeast Asia, alongside continued momentum in electric vehicle testing.

Europe

Europe represents a foundational market characterized by stringent regulatory frameworks and high demand for specialized sustainability and certification services.

• 2025 Sales: CHF 2,291 million.
• Revenue Contribution: Comprises 33% of the total consolidated sales.
• Physical locations: 921 laboratories and offices, the densest regional network.
• Workforce: 22,163 employees.

Growth in Europe is heavily supported by the sustainability transition, including major contracts with the European Commission to assess soil health across the continent.

North America

North America is identified as a critical strategic priority under Strategy 27, focusing on aggressive expansion and capacity enhancement through acquisitions.

• 2025 Sales: CHF 848 million.
• Revenue Contribution: Represents 12.2% of the total consolidated sales.
• Physical locations: 192 testing and business facilities.
• Workforce: 5,975 employees.

The company aims to double North American sales to USD 1.8 billion by 2027. The acquisition of ATS significantly expanded the operational footprint by adding 85 advanced US locations.

Eastern Europe, Middle East and Africa (EEMEA)

The EEMEA region provides vital testing and inspection services across diverse and rapidly developing economies, particularly in the natural resources and environmental sectors.

• 2025 Sales: CHF 788 million.
• Revenue Contribution: Accounts for 11.3% of the total consolidated sales.
• Physical locations: 560 operational sites.
• Workforce: 17,088 employees.

Operations in this region frequently involve large-scale agricultural and minerals testing, as well as advancing food safety and Halal assurance across global aviation catering networks.

Latin America

Latin America focuses heavily on natural resources, environmental monitoring, and agricultural commodity inspection, supporting the global supply chain at the source.

• 2025 Sales: CHF 650 million.
• Revenue Contribution: Represents 9.4% of the total consolidated sales.
• Physical locations: 230 laboratories and facilities.
• Workforce: 17,162 employees.

Strategic acquisitions like Hidromares have significantly expanded the service portfolio in the port segment, offering continuous oceanographic monitoring and specialized environmental analyses.

Financial performance analysis

The 2025 fiscal year marked a period of record financial performance, demonstrating the successful implementation and acceleration of the Strategy 27 program. The financial metrics reflect disciplined operational execution, strong organic growth, and effective margin expansion despite challenging currency environments.

• Consolidated Sales Growth: Reached CHF 6,945 million, an increase of 2.2% compared to 2024.
• Organic Growth Rate: Achieved a robust 5.6% organic growth.
• Acquisition Contribution: Acquisitions contributed 1.7% to overall growth.
• Foreign Exchange Impact: Growth was partially offset by an adverse foreign exchange effect of -5.1%.

The organization maintained strict cost controls and achieved CHF 150 million in organizational efficiencies, a target reached ahead of plan by the end of 2025. This lean operating model significantly bolstered profitability, enabling the group to navigate economic volatility while generating attractive returns for shareholders.

Profit and loss analysis

The consolidated income statement for 2025 reveals strong top-line revenue paired with disciplined expense management, resulting in record profitability metrics.

(CHF million)	2025	2024
Sales	6 945	6 794
Salaries and wages	-3 443	-3 427
Subcontractors’ expenses	-424	-414
Depreciation, amortization and impairment	-485	-476
Loss on business divestments	-22	–
Gain on HQ disposal	60	–
Other operating expenses	-1 617	-1 573
Operating income	1 014	904
Financial income	37	34
Financial expenses	-91	-94
Share of profit of associates and joint ventures	2	3
Profit before taxes	962	847
Taxes	-245	-222
Profit for the period	717	625
Profit attributable to:
Equity holders of SGS SA	668	581
Non-controlling interests	49	44
Basic earnings per share (in CHF)	3.48	3.10
Diluted earnings per share (in CHF)	3.46	3.09

Financial expenses remained stable at CHF 91 million, offset by financial income of CHF 37 million. Consequently, profit before taxes reached CHF 962 million, with a subsequent tax provision of CHF 245 million. Profit attributable to the equity holders of the parent company amounted to CHF 668 million.

Balance sheet analysis

While specific consolidated balance sheet totals are distributed across various notes, the standalone financial statements of the holding entity and key consolidated metrics highlight a solid capital structure and healthy liquidity position.

(CHF million)	2025	2024
ASSETS
Non-current assets
Property, plant and equipment	792	837
Right-of-use assets	543	548
Goodwill	1 894	1 783
Other intangible assets	319	304
Investments in joint ventures, associates and other companies	6	19
Deferred tax assets	194	213
Other non-current assets	200	199
Total non-current assets	3 948	3 903
Current assets
Assets classified as held for sale	7	17
Inventories	55	55
Unbilled sales and work in progress	269	247
Trade receivables	980	991
Other receivables and prepayments	207	217
Current tax assets	86	109
Marketable securities	1	–
Cash and cash equivalents	2 330	1 210
Total current assets	3 935	2 846
Total assets	7 883	6 749
EQUITY AND LIABILITIES
Capital and reserves
Share capital	8	8
Reserves	1 034	844
Treasury shares	-141	-55
Equity attributable to equity holders of SGS SA	901	797
Non-controlling interests	94	80
Total equity	995	877
Non-current liabilities
Loans and other financial liabilities	3 505	2 700
Lease liabilities	403	409
Deferred tax liabilities	71	73
Defined benefit obligations	65	64
Provisions	115	101
Total non-current liabilities	4 159	3 347
Current liabilities
Trade and other payables	600	624
Contract liabilities	262	261
Current tax liabilities	167	186
Loans and other financial liabilities	832	612
Lease liabilities	157	159
Provisions	77	72
Other creditors and accruals	634	611
Total current liabilities	2 729	2 525
Total liabilities	6 888	5 872
Total equity and liabilities	7 883	6 749

On a standalone basis, the parent entity possesses total assets of CHF 5,529 million, comprising CHF 1,379 million in current assets and CHF 4,150 million in non-current assets. Standalone equity stands at CHF 936 million, supported by retained earnings of CHF 1,035 million. The strategic management of debt and liquidity ensures the company maintains flexibility for future acquisitions and capital distributions.

Cash flow analysis

Cash generation remains a fundamental pillar of the company’s financial strategy, reflecting a deeply embedded cash flow culture across the organization.

(CHF million)	2025	2024
Profit for the period	717	625
Non-cash and non-operating items	757	799
Decrease in working capital	1	28
Taxes paid	-252	-228
Cash flow from operating activities	1 223	1 224
Purchase of property, plant and equipment and other intangible assets	-255	-251
Proceeds from disposals of property, plant and equipment and other intangible assets	5	12
Purchase of asset held for sale	-6	–
Proceeds from HQ disposal	80	–
Acquisition of businesses	-181	-193
Proceeds from disposal of businesses	13	–
Cash paid on other non-current assets	-4	-3
Proceeds received from investments in joint ventures, associates and other companies	1	1
Interest received	38	37
(Investment)/Proceeds from marketable securities	-1	4
Cash flow used in investing activities	-310	-393
Dividends paid to equity holders of SGS SA	-222	-207
Dividends paid to non-controlling interests	-50	-40
Transaction with non-controlling interests	-6	–
Cash paid on treasury shares	-100	-50
Proceeds from corporate bonds	1 430	–
Repayment of corporate bonds	-375	-250
Interest paid	-75	-98
Payment of lease liabilities	-175	-176
Proceeds from borrowings	7	–
Repayment of borrowings	-138	-380
Cash flow from/(used in) financing activities	289	-1 194
Effects of exchange rate changes on cash and cash equivalents	-82	4
Increase/(decrease) in cash and cash equivalents	1 120	-359
Cash and cash equivalents at beginning of year	1 210	1 569
Cash and cash equivalents at end of year	2 330	1 210

The robust free cash flow was primarily driven by the stronger adjusted operating income and disciplined working capital management. This liquidity generation enables the group to fund its aggressive bolt-on acquisition strategy, maintain an attractive dividend policy, and invest in capital expenditures to drive operational efficiencies.

Board of directors and leadership team

The Board of Directors is the highest governing body within the group, providing leadership, strategic oversight, and ensuring long-term value creation. The board strictly adheres to criteria ensuring independence, diversity, and relevant industry expertise.

• Calvin Grieder: Chair of the Board of Directors. He chairs the Nomination Committee and is a member of the Sustainability Committee. He has extensive experience in automation, food processing, and risk management, previously serving as CEO of Bühler.
• Géraldine Picaud: Chief Executive Officer and Member of the Board. With deep expertise in strategy, finance, and business transformation, she previously served as Group CFO at Holcim and Essilor International.
• Sami Atiya: Board Member. Chairs the Remuneration Committee and serves on the Nomination Committee. He brings critical knowledge in robotics, artificial intelligence, and medical technology from his leadership roles at ABB Ltd and Siemens.
• Kory Sorenson: Board Member. Chairs both the Audit Committee and the Sustainability Committee, while serving on the Remuneration Committee. Her background spans capital markets, audit, and governance, with experience at Barclays Capital and Credit Suisse.
• Patrick Kron: Board Member. Serves on the Remuneration and Nomination Committees. He possesses vast experience in general management and M&A, having previously presided over Truffle Capital and Alstom.
• Phyllis Ka Yan Cheung: Board Member. Member of the Sustainability Committee. She offers invaluable insight into digital organization, retail, and Asian market growth, currently serving as the CEO of McDonald’s China.
• Tobias Hartmann: Board Member. Member of the Audit Committee. His expertise lies in cybersecurity, technology, and eCommerce, following his tenure as CEO of Scout24 SE.
• Janet Vergis: Board Member. Serves on the Audit and Nomination Committees. She provides deep knowledge of healthcare, biotechnology, and heavily regulated businesses from her extensive career at Johnson & Johnson.
• Ian Gallienne: Board Member. Known for his expertise in consumer strategy and finance, previously serving as CEO of Groupe Bruxelles Lambert.

The executive leadership team comprises experienced professionals managing specific regions and functions. Key figures include Teymur Abasov (Head of Eastern Europe, Middle East & Africa), Malcolm Reid (Head of Europe), Derick Govender (Head of North America), Steven Du (Head of Asia Pacific), and Rafael Navazo (Head of Latin America).

Subsidiaries, associates, joint ventures

The group expanded its portfolio aggressively in 2025 by completing 19 bolt-on acquisitions. These strategic additions fortify the company’s capabilities across high-growth sectors, enhancing service depth and regional market share.

• Applied Technical Services (ATS): Acquired in early 2026, adding 85 locations and 2,100 employees in the United States.
• Hidromares: Expanding reach in Latin America, specifically within the port segment offering oceanographic monitoring.
• ASTER GLOBAL: Strengthening sustainability and environmental assessment capabilities.
• QUALITEST: Enhancing product testing and quality assurance frameworks.

Other notable acquisitions integrated throughout 2025 include CARPEDIA, H2Safety, RTI, AWIA, MPR SERVICES, sami, streamlinecontrol, STELLA OPERAZIONI DOGANALI S.R.L., ECOLOSS, MURRAY-BROWN LABORATORIES, EFBE, SGS GEOSOL, TRES60, Walsh, Panacea, METALLURGY, Fulcrum, Information Quality, and AASC.

Physical properties (offices, plants, factories, etc.)

The company operates a vast, decentralized physical infrastructure designed to provide immediate, localized support to clients across 115 countries.

• Global infrastructure: Comprises 2,456 distinct laboratories and business facilities.
• Capital allocation: CHF 246 million was invested in capital expenditures to drive operational efficiencies and sustainable growth across this network.
• Energy profile: 97% of the electricity consumed across the global property portfolio is sourced from renewable energy.

The physical footprint is strategically distributed to align with regional industrial demands. Europe houses 921 locations, the Asia Pacific region contains 553 facilities, EEMEA operates 560 sites, Latin America hosts 230 locations, and North America functions through 192 facilities (excluding the recent ATS acquisition). In November 2025, the organization consolidated its corporate footprint by relocating its global headquarters to a centralized facility in Baar, Switzerland.

Segment-wise performance

Each operational segment exhibited distinct financial and operational dynamics throughout 2025, contributing to the overall 5.6% organic growth rate.

• Industries & Environment: Experienced high single-digit organic growth ambition, delivering CHF 2,295 million in sales. The AOI margin expanded from 12.1% to 13.1% year-over-year.
• Natural Resources: Maintained a steady mid-to-high single-digit organic growth ambition, generating CHF 1,636 million in revenue. The AOI margin remained strong at 13.6%.
• Connectivity & Products: Delivered CHF 1,352 million in sales. Benefiting from a surge in product safety testing and wireless demand, it achieved the highest AOI margin of 22.8%, an improvement from 21.6% in 2024.
• Health & Nutrition: Generated CHF 882 million in revenue, driven by robust performance in food safety testing. Profitability improved significantly, with the AOI margin rising from 11.4% to 14.1%.
• Business Assurance: Produced CHF 780 million in sales with a double-digit organic growth ambition for certification and ESG services. The AOI margin remained highly lucrative at 19.6%.

Founders

The foundational legacy of the enterprise traces back to 1878, initiated by the entrepreneurial vision of Henri Goldstuck.

• Henri Goldstuck: Founded the company in Rouen, France.
• Initial focus: The business began by capitalizing on the burgeoning agricultural trade, specifically inspecting French grain shipments at one of the country’s largest ports.
• Rapid scale: Within a year, Goldstuck’s rigorous methodology proved so valuable that operations were expanded to Le Havre, Dunkirk, and Marseille.

This singular focus on verification, precision, and trust established the operational DNA that continues to govern the multinational corporation today.

Shareholding pattern

The ownership structure of the company involves significant participation from major institutional investors and asset management firms, ensuring stable financial backing.

• Groupe Bruxelles Lambert: The largest significant shareholder, holding 14.34% of the share capital and voting rights directly and through associated entities (Serena SARL, FINPAR IX, and FINPAR X) as of December 2025.
• UBS Fund Management (Switzerland) AG: Maintains a holding of 6.32%.
• BlackRock Inc.: Controls 5.21% of the share capital.
• Swisscanto Fondsleitung AG: Holds 3.01% of the shares.
• Treasury Shares: The company itself holds 1,654,005 treasury shares, representing 0.849% of the total share capital.

Parent

The ultimate holding entity of the global group is SGS SA, registered in Baar, Switzerland. It directly or indirectly controls all subsidiaries worldwide and operates as an independent, publicly traded entity without a parent corporation.

Investments and capital expenditure plans

Capital allocation is executed with disciplined precision, balancing the need for network modernization with strategic acquisitions.

• Total Capex: CHF 246 million was deployed in 2025.
• Strategic Focus: Expenditures are directed toward driving operational efficiencies, enhancing laboratory capabilities, and supporting sustainable growth across the global network.
• Supply Chain Spend: The organization spent CHF 2.3 billion on goods and services, integrating sustainability criteria into procurement to drive laboratory and operating facility enhancements.

Investment priorities strongly favor the expansion of Digital Trust platforms and advanced scientific instrumentation, such as the deployment of patented airborne eDNA technology systems across Europe.

Future strategy

The strategic trajectory of the organization is strictly governed by “Strategy 27: Accelerating growth, building trust.” This comprehensive framework is built to exploit four definitive TIC industry megatrends.

• Sustainability target: Achieve at least CHF 1.0 billion in sales from the IMPACT NOW program by 2027.
• Digital Trust target: Generate at least CHF 350 million from the DIGITAL TRUST framework by 2027.
• North American expansion: More than double regional sales to USD 1.8 billion by 2027 compared to the 2023 baseline.
• Financial ambitions: Deliver annual organic sales growth of 5% to 7% while improving the AOI margin by at least 1.5 percentage points by 2027.

By fostering an accountability, performance, and cash flow culture, the company is executing a CHF 150 million efficiency program to simplify corporate structures and optimize service delivery across all geographic zones.

Key strengths

The organization leverages an array of formidable operational and reputational assets that secure its position as the global point of reference in the TIC industry.

• Global scale: A unique network of 2,456 facilities across 115 countries provides unmatched proximity to international supply chains.
• Brand heritage: 148 years of continuous operation establishes a gold standard for trust and independent assurance.
• Accreditation volume: Holds the largest number of accreditations globally, coupled with the most extensive network for restricted substance testing.
• Customer loyalty: Achieved a 92% customer satisfaction score in 2025, ensuring high retention and recurrent revenue in regulated markets.

Key challenges and risks

Operating in a highly regulated and rapidly evolving global environment exposes the enterprise to distinct operational and strategic risks.

• Service Integrity: A violation of service integrity represents a critical risk. Failure to uphold rigorous standards could lead to the loss of accreditation, client trust, and market access in strictly regulated sectors.
• Geopolitical Security: Business disruptions arising from criminality, civil disorder, or armed conflicts pose threats to employee safety and facility operations.
• Regulatory Evolution: The tightening of cybersecurity and AI governance frameworks, such as the NIS2 and EU AI Act, increases operational complexity and demands continuous compliance upgrades.
• Technology Disruption: The rapid emergence of new digital capabilities constantly challenges traditional laboratory and audit models, necessitating perpetual innovation.

To mitigate these challenges, the company employs a unified double-materiality assessment framework, deploying robust internal controls, enhanced physical security protocols, and specialized compliance task forces.

Conclusion and strategic outlook

In 2025, SGS firmly demonstrated the efficacy of its Strategy 27 acceleration program by delivering record sales, operational income, and free cash flow. The organization has successfully aligned its expansive global footprint and unparalleled technical expertise with the most pressing megatrends shaping the modern economy: the imperative for sustainability and the rapid expansion of digital ecosystems.

By executing strategic acquisitions like ATS in North America and launching innovative frameworks like DIGITAL TRUST and IMPACT NOW, the company is proactively capturing high-growth opportunities. As regulatory environments grow increasingly complex and supply chains undergo global realignment, the structural demand for independent, verified assurance will continue to rise. Supported by disciplined financial management and an unwavering commitment to operational integrity, the enterprise is exceptionally well-positioned to achieve its ambitious 2027 financial and non-financial targets, redefining the future of the Testing, Inspection, and Certification industry.

FAQ section

What is the core business of SGS? SGS is the world’s leading Testing, Inspection, and Certification company, providing independent services to ensure products, services, and systems meet global quality, safety, and sustainability standards.

How many employees does the company have? The organization is supported by a global workforce of 102,804 dedicated professionals operating across 115 countries.

What were the total sales for 2025? The company reported record total sales of CHF 6,945 million in 2025, driven by an organic growth rate of 5.6%.

What is the Strategy 27 program? Strategy 27 is the corporate acceleration plan targeting the megatrends of sustainability, digital innovation, supply chain nearshoring, and increased regulation to drive 5-7% annual organic growth and improve profit margins by 2027.

How is the company structured operationally? Operations are divided into two main divisions: Testing and Inspection, and Certification. These are further broken down into business lines: Industries & Environment, Natural Resources, Connectivity & Products, Health & Nutrition, and Business Assurance.

What is the IMPACT NOW initiative? IMPACT NOW is the company’s dedicated sustainability framework, providing advisory and certification services related to climate, nature, circularity, and ESG assurance, with a target of CHF 1.0 billion in sales by 2027.

Where is the company headquartered? The global headquarters was relocated to Baar, Switzerland, in November 2025.

Who leads the executive management team? The executive team is led by Chief Executive Officer Géraldine Picaud.

What was the most significant recent acquisition? In January 2026, the company completed the acquisition of Applied Technical Services (ATS), significantly expanding its testing and inspection capabilities in North America.

How does the company handle digital and AI risks? Through its SGS DIGITAL TRUST framework and specialized brands like CertX and Brightsight, the company provides independent validation, cybersecurity evaluation, and AI conformity assessments.

Official Site: https://www.sgs.com/

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