Testing group SGS benefiting from companies nearshoring in U.S.

By Paolo Laudani

Oct 23 (Reuters) - SGS SGSN.S is benefiting from companies nearshoring in the United States, its CEO said on Thursday after the testing and inspection group reported an increase in third quarter revenue that was slightly ahead of market forecasts.

The Geneva-based company reported 6% organic growth for the July-September period, a touch above expectations of 5.3%.

Growth in the quarter was "not a given against the backdrop of subdued growth in global trade in 2025 and ongoing tariff discussions," analysts at Zuercher Kantonalbank said in a note.

Shares in the company were up 2% at 0725 GMT.

SGS said in July that it would acquire ATS, a Georgia headquartered inspection and testing firm. The deal is expected between the end of this year and early 2026.

"We are benefiting from nearshoring," CEO Geraldine Picaud said in a media call about companies moving their production to the U.S. to dodge draconian import tariffs.

"We will fully take benefit of that when we have closed our acquisition of ATS," she said, adding there was "more to come as we go into the year and the next year."

Picaud had previously said SGS would likely benefit from Donald Trump's re-election.

Organic growth in the quarter, which offset a negative foreign exchange impact, came slightly ahead of a consensus the company shared with Reuters.

SGS confirmed its organic growth target of 5-7% for 2025.

French peer Bureau Veritas BVI.PA said on Thursday it grew 6.3% organically in the third quarter and confirmed its outlook for this year.

The two companies ended talks over a potential $30 billion merger in January.

($1 = 0.7931 Swiss francs)