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Eurotech
Interim / Quarterly Report • Sep 12, 2025
4469_10-q_2025-09-11_afad74a5-badd-4855-ac49-07646b1f325f.pdf
Interim / Quarterly Report
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EUROTECH: CONSOLIDATED FINACIAL REPORT AS AT 30 JUNE 2025 APPROVED BY THE BOD
Revenues down 26.8% due to the slowdown in order intake in the second half of 2024. Orders up, with a book-to-bill ratio of over 1.2 on a trailing twelve months basis. Operating costs down €2.4 million in the half-year help to limit the impact of lower revenues on EBITDA.
Amaro (Italy), 11 September 2025
- Consolidated revenues of € 21.5 million (€ 29.3 million as at 30.06.2024, -26.8% at constant exchange rates)
- Consolidated gross profit of € 10.6 million and 49.3% of revenues (€ 14.5 million and 49.7% of revenues as at 30.06.2024)
- Consolidated EBITDA of € -5.3 million (€ -3.5 million as at 30.06.2024)
- Consolidated EBITDA adjusted of € -4.0 million (€ -3.1 million as at 30.06.2024)
- Consolidated EBIT of € -7.7 million (€ -5.8 million as at 30.06.2024)
- Group net income of € -7.6 million (€ -5.5 million as at 30.06.2024)
- Net debt of € 18.7 million (€ 20.4 million as at 31.12.2024)
The Board of Directors of Eurotech S.p.A. today examined and approved the results of first six months of 2025.
Trend of the period
The results for the first half of 2025 were heavily influenced by order intake in the second half of 2024, which in turn was closely linked to the crisis experienced by the industrial sector, particularly in Europe. Both the US and European regions saw a decline in revenue compared to the first half of 2024, while Japan held steady, even showing a recovery compared to the first quarter results.
Since February, we have seen a sharp reversal in the trend in order intake, with the order-tosales ratio reaching and exceeding 1.2 on a rolling 12-month basis in June, July, and August. There were three main drivers behind this trend: the reactivation of the ADAS business in Germany, which had almost come to a standstill in the second half of 2024; a strong recovery in the railway business; and orders in Japan for new custom products placed by long-standing customers of the subsidiary Advanet.
The first margin was in line with both the first six months of last year and the first three months of 2025, with a performance that confirms a good mix of products sold.
Operating costs fell by 12.0% compared to the first half of 2024, or 16.5% net of non-recurring costs. This reduction is linked both to the reduction in the number of employees and to the use, during the period under review, of instruments such as solidarity contracts in Italy and similar instruments in Germany. The good work on costs made it possible to lower the break-even point by almost €5 million, thus limiting the impact on EBITDA of the lower turnover for the halfyear.
Economic performance of the Eurotech Group
Consolidated revenues for the first half of 2025 amounted to €21.48 million, compared to €29.26 million in the first half of 2024. The decrease in turnover from one period to the next was 26.6%, an improvement on the 31.0% decrease recorded in the first quarter. At constant exchange rates, the reduction was 26.8%.
The gross margin, as a percentage of turnover, stood at 49.3% compared to 49.7% in the same period last year and 49.6% in the first quarter.
In the six months under review, operating costs before adjustments amounted to €17.69 million, compared to €20.11 million in the first half of 2024, a reduction of €2.42 million (- 12.0%).
Non-recurring costs recorded in the first half of 2025 amounted to €1.24 million (€0.41 million in the first half of 2024): these relate to the Group's reorganization and efficiency improvement activities and mainly concern one-off costs incurred for workforce reduction and the termination of the contractual relationship with the previous CEO.
Adjusted EBITDA for the first six months amounted to €-4.05 million, compared to €-3.08 million in the same period of 2024.
Including non-recurring costs, EBITDA for the first six months of 2025 amounted to €-5.28 million, compared to €-3.49 million in 2024.
EBIT, or operating profit for the year, amounted to €-7.72 million, compared to €-5.84 million in the first six months of 2024.
In terms of the Group's net profit, the figure for the first half of the year was €-7.56 million, compared to €-5.51 million in the same period of 2024.
Balance sheet and financial situation of the Eurotech Group
As of June 30, 2025, the Group had net financial debt of €18.70 million, compared to €20.40 million as of December 31, 2024. The reduction in net financial debt during the half-year was mainly due to three factors: operating cash flow of €0.2 million, supported by a reduction in working capital; cash used of €2.6 million for investments and repayment of interest related to borrowings; a payment of €5.0 million for a future capital increase made in several tranches by the relative majority shareholder Emera S.r.l..
Net working capital decreased by €5.17 million, from €14.68 million at December 31, 2024, to €9.52 million at June 30, 2025. The reduction in working capital is due to both a decrease in current assets and an increase in current liabilities: in particular, while trade receivables decreased by €2.90 million and inventories decreased by €0.63 million, trade payables and payables to affiliates increased by a total of €1.21 million. Net working capital as a percentage of revenues for the last twelve rolling months was 18.5%, compared to 24.8% at December 31, 2024, and 27.0% at June 30, 2024.
The Group's shareholders' equity amounted to €56.0 million (€60.7 million at December 31, 2024).
Foreseeable evolution of operations
At the end of August, the total value of orders received had already reached the figure recorded for the entire 2024 financial year, strengthening visibility on revenue performance in the coming periods.
As a result of this trend, turnover in the second half of the year will be significantly higher than in the first half. Furthermore, revenues in the second half of 2025 are expected to exceed those recorded in the second half of 2024. This performance will enable a reversal of the EBITDA trend, which will be positive in the second half of the year.
The rationalization and redesign of the operating structure will continue in the second half of the year, with a particular focus on opportunities for vertical integration at the operational level between the subsidiaries and the parent company. The goal is to achieve a further
reduction in the run-rate of operating costs, so as to maximize performance in the second half of the year and lower the break-even point for next year.
***
The Manager in charge of drawing up the corporate accounting documents, Sandro Barazza, hereby certifies, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the documented results, books and accounting records of the company.
***
Eurotech
Eurotech (ETH:IM) is a multinational company that designs, develops and delivers Edge Computers and Internet of Things (IoT) solutions complete with services, software and hardware to system integrators and enterprises. By adopting Eurotech's solutions, customers have access to components and software platforms for IoT, Edge Gateways to enable asset monitoring, and high-performance Edge Computer for applications including Artificial Intelligence (Edge AI). To offer more and more complete solutions Eurotech has activated partnerships with leading companies in their field of action, thus creating a global ecosystem that allows it to create "best in class" solutions for the Industrial Internet of Things. More information: www.eurotech.com
| Contacts | |
|---|---|
| Investor Relations | Corporate Communication |
| Andrea Barbaro | Federica Maion |
| +39 0433 485411 | Tel. +39 0433 485411 |
| [email protected] | [email protected] |
ANNEXES - ACCOUNTING SCHEDULES
CONSOLIDATED PROFIT AND LOSS ACCOUNT
| ANNEXES - ACCOUNTING SCHEDULES | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED PROFIT AND LOSS ACCOUNT | ||||||||||
| (€ '000) | H1 2025 (b) | of which non recurrent |
of which related parties |
% | H1 2024 (a) | of which non recurrent |
of which related parties |
% | amount | change (b-a) % |
| Sales revenue | 21,483 | - | 100.0% | 29,261 | 3 | 100.0% | (7,778) | -26.6% | ||
| Cost of material | (10,895) | -50.7% | (14,721) | -50.3% | (3,826) | -26.0% | ||||
| Gross profit | 10,588 | 49.3% | 14,540 | 49.7% | (3,952) | -27.2% | ||||
| Services costs | (6,020) | (569) | (171) | -28.0% | (6,924) | (116) | (525) | -23.7% | (904) | -13.1% |
| Lease & hire costs | (351) | -1.6% | (474) | -1.6% | (123) | -25.9% | ||||
| Payroll costs Other provisions and costs |
(10,899) | (568) | -50.7% | (12,053) | (182) | -41.2% | (1,154) | -9.6% | ||
| Other revenues | (422) 1,821 |
(99) | -2.0% 8.5% |
(663) 2,084 |
(111) | -2.3% 7.1% |
(241) (263) |
-36.3% -12.6% |
||
| EBITDA | (5,283) | (1,236) | -24.6% | (3,490) | (409) | -11.9% | (1,793) | -51.4% | ||
| Depreciation & Amortization | (2,435) | -11.3% | (2,263) | -7.7% | 172 | 7.6% | ||||
| Asset impairment | 0 | 0.0% | (85) | -0.3% | (85) | -100.0% | ||||
| EBIT | (7,718) | (1,236) | -35.9% | (5,838) | (409) | -20.0% | (1,880) | -32.2% | ||
| Finance expense | (955) | -4.4% | (1,403) | -4.8% | (448) | -31.9% | ||||
| Finance income | 454 | 2.1% | 1,668 | 5.7% | (1,214) | -72.8% | ||||
| Profit before tax Income tax |
(8,219) | (1,236) | -38.3% | (5,573) | (409) | -19.0% | (2,646) | -47.5% | ||
| 655 | 3.0% | 62 | 0.2% | (593) | n.s. | |||||
| Net profit (loss) of continuing operations before minority interest |
(7,564) | (1,236) | -35.2% | (5,511) | (409) | -18.8% | (2,053) | -37.3% | ||
| Minority interest | - | 0.0% | - | 0.0% | - | n/a | ||||
| Group net profit (loss) for period | (7,564) | (1,236) | -35.2% | (5,511) | (409) | -18.8% | (2,053) | -37.3% | ||
| REVENUES BREAKDOWN BY END-CUSTOMER LOCATION | ||||||||||
| (€' 000) BREAKDOWN BY GEOGRAPHIC AREA |
H1 2025 | % | H1 2024 | % | % change | |||||
| European Union | 10,526 | 49.0% | 15,056 | 51.5% | -30.1% | |||||
| United States | 1,304 | 6.1% | 4,867 | 16.6% | -73.2% | |||||
| Japan | 7,882 | 36.7% | 7,026 | 24.0% | 12.2% | |||||
REVENUES BREAKDOWN BY END-CUSTOMER LOCATION
| (955) | -4.4% | (1,403) | -4.8% | (448) | -31.9% | ||
|---|---|---|---|---|---|---|---|
| 454 | 2.1% | 1,668 | 5.7% | (1,214) | -72.8% | ||
| 655 | 3.0% | 62 | 0.2% | (593) | n.s. | ||
| BREAKDOWN BY GEOGRAPHIC AREA | H1 2025 | % | % | ||||
| 10,526 | 49.0% | 51.5% | |||||
| 1,304 | 6.1% | 16.6% | |||||
| 7,882 | 36.7% | 24.0% | |||||
| 1,771 | 8.2% | 7.9% | |||||
| TOTAL SALES AND SERVICE REVENUES | 21,483 | 100.0% | 29,261 | 100.0% | -26.6% | ||
| H1 2024 15,056 4,867 7,026 2,312 |
REVENUES BREAKDOWN BY END-CUSTOMER LOCATION | % change -30.1% -73.2% 12.2% -23.4% |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| (€'000) | at June 30, 2025 |
of which at December related 31, 2024 parties |
of which related parties |
|---|---|---|---|
| ASSETS | |||
| Intangible assets | 60,886 | 62,425 | |
| Property, Plant and equipment | 7,759 | 8,367 | |
| Investments in affiliate companies | 4 | 4 | |
| Investments in other companies | 138 | 152 | |
| Deferred tax assets | 2,177 | 1,647 | |
| Other non-current assets | 455 | 480 | |
| Total non-current assets | 71,419 | 73,075 | |
| Inventories | 16,515 | 17,141 | |
| Trade receivables | 9,501 | 12,405 | |
| Income tax receivables | 693 | 934 | |
| Other current assets | 1,789 | 1,498 | |
| Other current financial assets | 12 | 115 | |
| Derivative instruments | 11 | 29 | |
| Cash & cash equivalents | 6,414 | 6,170 | |
| Total current assets | 34,935 | 38,292 | |
| Total assets | 106,354 | 111,367 | |
| LIABILITIES AND EQUITY | |||
| Share capital | 9,657 | 8,879 | |
| Reserves | ( 84,169) | ( 48,460) | |
| Share premium reserve | 138,122 | 136,400 | |
| Net profit (loss) for period | ( 7,564) | ( 36,155) | |
| Other reserves | ( 91,733) | ( 84,615) | |
| Group shareholders' equity | 56,046 | 60,664 | |
| Equity attributable to minority interest | - | - | |
| Total shareholders' equity | 56,046 | 60,664 | |
| Medium-/long-term borrowing | 16,278 | 17,551 | |
| Employee benefit obligations | 2,242 | 2,331 | |
| Deferred tax liabilities | 3,011 | 3,164 | |
| Other non-current liabilities | 940 | 1,200 | |
| Total non-current liabilities | 22,471 | 24,246 | |
| Trade payables | 10,297 | 9,040 | |
| Trade payables from affiliates companies | 349 | 349 399 |
399 |
| Short-term borrowing | 8,740 | 9,048 | |
| Income tax liabilities | 733 | 953 | |
| Other current liabilities | 7,603 | 6,902 | |
| Business combination liabilities | 115 | 115 | |
| Total current liabilities | 27,837 | 26,457 | |
| Total liabilities | |||
| 50,308 | 50,703 | ||
| Total liabilities and equity | 106,354 | 111,367 |
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
| STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (€'000) | Share capital | Legal reserve | Share premium reserve |
Conversion reserve | Other reserves | Cash flow hedge reserve |
Actuarial gains/(losses) on defined benefit plans reserve |
Exchange rate differences reserve |
Treasury shares | Profit (loss) for period | Group shareholders ' equity |
Equity attributable to Minority interest |
Total shareholders ' equity |
| Balance as at December 31, 2024 | 8,879 | 1,776 | 136,400 | ( 2,187) | ( 51,514) | 29 | ( 513) | 4,611 | ( 662) | ( 36,155) | 60,664 | - | 60,664 |
| 2024 Result allocation | - | - | - | - | ( 36,155) | - | - | - | - | 36,155 | - | - | - |
| Profit (loss) as at June 30, 2025 | - | - | - | - | - | - | - | - | - | ( 7,564) | ( 7,564) | - | ( 7,564) |
| Comprehensive other profit (loss): | |||||||||||||
| - Hedge transactions | - | - | - | - | ( 18) | - | - | - | - | ( 18) | - | ( 18) | |
| - Actuarial gains/(losses) on defined benefit plans for employees |
- | - | - | - | ( 22) | - | 22 | - | - | - | - | - | |
| - Foreign balance sheets conversion difference - Exchange differences on equity investments |
- | - | - | 679 | - | - | - | - | 679 | - | 679 | ||
| in foreign companies | - | - | - | - | - | - | ( 2,728) | - | - | ( 2,728) | - | ( 2,728) | |
| Total Comprehensive result | - | - | - | 679 | ( 22) | ( 18) | 22 | ( 2,728) | - | ( 7,564) | ( 9,631) | - | ( 9,631) |
| Performance Share Plan | - | - | - | - | 114 | - | - | - | - | - | 114 | - | 114 |
| Increase of capital | 778 | 1,722 | - | ( 2,601) | - | - | ( 101) | ( 101) | |||||
| Future capital increase payment | - | 5,000 | - | - | 5,000 | 5,000 |
CONDENSED CASH FLOW STATEMENT
| - Foreign balance sheets conversion difference | - | - | - | 679 | - | - | - | - | 679 | - | 679 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| - Exchange differences on equity investments | |||||||||||||
| Performance Share Plan | - | - | - | - | 114 | - - |
- | - | - | 114 | - | 114 | |
| Future capital increase payment | - | 5,000 | - | - | 5,000 | 5,000 | |||||||
| Balance as at June 30, 2025 | 9,657 | 1,776 | 138,122 | ( 1,508) | ( 85,178) | 11 | ( 491) | 1,883 | ( 662) | ( 7,564) | 56,046 | - | 56,046 |
| CONDENSED CASH FLOW STATEMENT | |||||||||||||
| (€'000) | at June 30, 2025 |
at June 30, 2024 |
|||||||||||
| Cash flow generated (used) in operations | A | 191 | ( 366) | ||||||||||
| Cash flow generated (used) in investment activities | B | ( 1,616) | ( 2,055) | ||||||||||
| Cash flow generated (absorbed) by financial assets | C | 2,492 | ( 2,818) | ||||||||||
| Net foreign exchange difference | D | ( 823) | ( 556) | ||||||||||
| Increases (decreases) in cash & cash equivalents | E=A+B+C+D | 244 | ( 5,795) | ||||||||||
| Opening amount in cash & cash equivalents | 6,170 | 11,428 |
NET FINANCIAL POSITION
| NET FINANCIAL POSITION | ||||
|---|---|---|---|---|
| at June 30, | at December 31, | at June 30, | ||
| (€'000) | 2025 | 2024 | 2024 | |
| Cash | A | 6,414 | 6,170 | 5,633 |
| Cash equivalents | B | - | - | - |
| Other current financial assets | C | 23 | 144 | 181 |
| Cash equivalent | D=A+B+C | 6,437 | 6,314 | 5,814 |
| Current financial debt | E | 4,261 | 6,808 | 8,249 |
| Current portion of non-current financial debt | F | 4,479 | 2,240 | 10,336 |
| Other current financial liabilities | G | 115 | 115 | 341 |
| Short-term financial position | H=E+F+G | 8,855 | 9,163 | 18,926 |
| Short-term net financial position | I=H-D | 2,418 | 2,849 | 13,112 |
| Non current financial debt | J | 16,278 | 17,551 | 10,177 |
| Debt instrument | K | - | - | - |
| Trade payables and other non-current payables | L | - | - | - |
| Medium-/long-term net financial position | M=J+K+L | 16,278 | 17,551 | 10,177 |
| (NET FINANCIAL POSITION) NET DEBT | ||||
| ESMA | N=I+M | 18,696 | 20,400 | 23,289 |
| NET WORKING CAPITAL | ||||
| at June 30, | at December | at June 30, | ||
| (€'000) | 2025 (b) |
31, 2024 | 2024 (a) |
Changes (b-a) |
| Inventories | 16,515 | 17,141 | 21,798 | (626) |
| Trade receivables | 9,501 | 12,405 | 14,377 | (2,904) |
| Income tax receivables | 693 | 934 1,454 |
(241) | |
| Other current assets | 1,789 | 1,498 1,918 |
291 | |
| Current assets | 28,498 | 31,978 | 39,547 | (3,480) |
| Trade payables | (10,297) | (9,040) | (11,733) | (1,257) |
| Trade payables from affiliates companies | (349) | (399) (348) |
50 |
NET WORKING CAPITAL
| NET WORKING CAPITAL | ||||
|---|---|---|---|---|
| at June 30, 2025 |
at December 31, 2024 |
at June 30, 2024 |
Changes | |
| (€'000) | (b) | (a) | (b-a) | |
| Inventories | 16,515 | 17,141 | 21,798 | (626) |
| Trade receivables | 9,501 | 12,405 | 14,377 | (2,904) |
| Income tax receivables | 693 | 934 | 1,454 | (241) |
| Other current assets | 1,789 | 1,498 | 1,918 | 291 |
| Current assets | 28,498 | 31,978 | 39,547 | (3,480) |
| Trade payables | (10,297) | (9,040) | (11,733) | (1,257) |
| Trade payables from affiliates companies | (349) | (399) | (348) | 50 |
| Income tax liabilities | (733) | (953) | (837) | 220 |
| Other current liabilities | (7,603) | (6,902) | (6,314) | (701) |
| Current liabilities | (18,982) | (17,294) | (19,232) | (1,688) |
| 20,315 | (5,168) | |||
| Net working capital | 9,516 | 14,684 |
CASH-FLOW STATEMENT
| CASH-FLOW STATEMENT | |||
|---|---|---|---|
| CONSOLIDATED CASH FLOW STATEMENT | at June 30, | of which at June 30, |
of which |
| (€'000) | 2025 | related 2024 parties |
related parties |
| CASH FLOWS GENERATED BY OPERATIONS: | |||
| Group net profit (loss) for period Adjustments to reconcile reported net profit with cash & |
( 7,564) | ( 5,511) | |
| cash equivalents generated (used) in operations: | |||
| Depreciation & amortization intangible assets, property, plant and | 2,435 | 2,348 | |
| Interest income | ( 3) | ( 2) | |
| Interest expenses Income taxes of the period |
416 - |
566 ( 238) |
|
| Stock Grant expenses | 114 | 37 | |
| Provision for (use of) long-term employee severance indemnities | ( 89) | ( 147) | |
| Provision for (use of) risk provision | ( 260) | 58 | |
| (Provision for) / use of deferred tax asset / Provision for (use of) deferred tax liability |
365 | ( 207) | |
| Changes in current assets and liabilities | |||
| Trade receivables | 2,529 | (2) 4,917 |
(1) |
| Other current assets | 21 | ( 26) | |
| Inventories and contracts in process Trade payables |
198 1,365 |
( 510) (32) 600 |
(264) |
| Other current liabilities | 664 | ( 2,251) | |
| Total adjustments and changes | 7,755 | 5,145 | |
| Cash flow generated (used) in operations | 191 | ( 366) | |
| CASH FLOW FROM INVESTMENT ACTIVITIES: | |||
| Sales of tangible and intangible assets | 82 | 4 | |
| Interest income | 3 | 2 | |
| Purchase of intangible fixed assets Purchase of tangible fixed assets |
( 1,617) ( 226) |
( 1,793) ( 342) |
|
| Decreases (Increases) other financial assets | 103 | 33 | |
| Net (investments) Divestments in long-term investments and non-current assets | 39 | 41 | |
| Cash flow generated (used) in investment activities | ( 1,616) | ( 2,055) | |
| CASH FLOW FROM FINANCING ACTIVITIES: | |||
| Other changes in shareholders' equity Loans taken |
4,899 2,069 |
- 450 |
|
| Interest paid | ( 416) | ( 566) | |
| (Repaid) loans short and medium/long term | ( 4,060) | ( 2,702) | |
| Cash flow generated (absorbed) by financial assets | |||
| Net foreign exchange difference | 2,492 ( 823) |
( 2,818) ( 556) |
|
| Increases (decreases) in cash & cash equivalents | 244 | ( 5,795) | |
| Opening amount in cash & cash equivalents | 6,170 | 11,428 | |
| Cash & cash equivalents at end of period | 6,414 | 5,633 |
