Sonova: Sharpening Its Hearing

UBS maintains its A- rating and Stable outlook on Sonova following solid FY25/26 results and improved leverage of 1.1x. While the underlying credit remains strong due to defensive industry dynamics, UBS flags specific 2029 and 2034 CHF bonds as expensive.

Key Takeaways

• 1.UBS affirms an A- credit rating and Stable outlook for Sonova, supported by its leading position in the defensive hearing care market.
• 2.FY25/26 performance was solid with net leverage improving to 1.1x, at the low end of the 1.0-1.5x target range.
• 3.While most CHF bonds are viewed as fair, the 0% 2029 and 0.4% 2034 notes are considered expensive.

Table of Contents

• Issuer credit view
• Investment case
• Issuer description
• Above market growth in FY25/26
• Moderate deleveraging on the back of positive free cash flow
• Required disclosures
• UBS CIO risk views
• UBS CIO valuation views
• Sell recommendations
• Issuer valuation views
• Analyst certification
• Company/Country Disclosures (28 May 2026)
• Producers, disseminators and their competent authorities
• Frequency of updates
• Statement of Risk
• Risk information

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