IRCE

Earnings Release • Sep 12, 2025

Informazione Regolamentata n. 0163-28-2025		Data/Ora Inizio Diffusione 12 Settembre 2025 17:25:03	Euronext Star Milan
Societa'	:	IRCE
Identificativo Informazione Regolamentata	:	209901
Utenza - referente	:	IRCEN01 - CASADIO ELENA
Tipologia	:	1.2
Data/Ora Ricezione	:	12 Settembre 2025 17:25:03
Data/Ora Inizio Diffusione	:	12 Settembre 2025 17:25:03
Oggetto	:	Half-yearly financial report as of 30 June 2025
Testo del comunicato

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FIRST HALF YEAR 2025 FINANCIAL RESULTS

The Board of Directors has today approved the consolidated financial statements as at June 30th, 2025.

In the first half year 2025, IRCE Group (hereinafter also the "Group") recorded a net profit of € 3.81 million.

Consolidated turnover amounted to € 204.09 million, down by 2.1% compared to € 208.41 million in the first half year of 2024.This decline was driven by lower sales volumes, only partially offset by an increase in copper prices (the average LME price in euros in the first half of 2025 was 2.7% higher than in the same period of 2024).

Throughout the first half of 2025, market demand remained subdued in both business segment, with sales volumes consistent with those recorded in the first quarter. In the winding wire sector, the decline in sales was due not only to persistent difficulties in the end markets (automotive, household appliances, and electromechanical/electronic equipment), but also to the phased reduction of production at the Dutch subsidiary Smit Draad, which ceased operations in May. The cable sector, where the decline was most significant, was impacted by ongoing difficulties in its traditional markets: construction, and cabling.

Results are reported in the following table:

Consolidated income statement data	30 June 2025	30 June 2024	Change
(€/million)	Value	Value	Value
Turnover1	204.09	208.41	(4.32)
Turnover without metal2	47.17	51.98	(4.81)
EBITDA3	10.82	12.41	(1.59)
EBIT	7.92	8.37	(0.45)
Result before tax	6.93	7.99	(1.06)
Group Net Result of the period	3.81	4.84	(1.03)
Adjusted EBITDA4	11.73	13.03	(1.30)
Adjusted EBIT⁴	8.83	8.99	(0.16)

Consolidated statement of financial position data	30 June 2025	31 December 2024	Change
(€/million)	Value	Value	Value
Net invested capital5	218.24	197.13	21.11
Shareholders' equity	152.85	150.62	2.23
Net financial position6	65.39	46.51	18.88

¹ The item "Turnover" represents the "Sales revenues" reported in the income statement.

²Turnover without metal corresponds to the total turnover less the metal component.

³ EBITDA is a performance indicator the Group's Management uses to assess the operating performance of the company and is not an IFRS measure; IRCE S.p.A. calculates it by adding depreciation/amortisation, provisions and write-downs to EBIT.

⁴ Adjusted EBITDA and EBIT are calculated as the sum of EBITDA and EBIT and the gains/losses on copper and electricity derivatives transactions if realized (€ +0.91 million in first half of 2025 and € +0.62 million in first half of 2024). These are indicators the Group's Management uses to monitor and assess its own operating performance and are not IFRS measures. Given that the composition of these measures is not regulated by the reference accounting standards, the criterion used by the Group may not be consistent with that adopted by others and is therefore not comparable.

⁵ Net invested capital is the sum of net working capital, fixed assets, other receivables net of other payables, provisions for risks and charges and provisions for employee benefits.

⁶ The methods for measuring the net financial position as defined by Consob's Notice no. 5/21 of 29 April 2021, which incorporates the ESMA Guideline published on 4 March 2021.

PRESS RELEASE

As at 30 June 2025, the net financial position amounted to € 65.39 million, up from € 46.51 million at 31 December 2024. This increase was primarily driven by the expansion of working capital and, to a lesser extent, by investments totaling € 10.67 million during the period, which were made by our Brazilian subsidiary and the two new projects in the Czech Republic and China.

The high level of uncertainty characterizing the overall economic outlook, fuelled by ongoing trade tensions and international conflicts, makes forecasting very difficult. In this context, however, the Group expects its 2025 results to be in line with those achieved in 2024.

The rationalization process initiated by the group and the medium-long term strategy to growth in sectors related to the energy transition will ensure greater efficiency and higher margins for the Group, with a positive impact on results in the coming years.

The Group's investment projects continue. The Czech Republic plant started the first production tests of the installed machines; the construction of the plant in China will be completed at the end of the year, with production starting in the second half of 2026.

Regarding the Dutch subsidiary Smit Draad, all employment contracts were terminated by the end of July this year, in accordance with the agreement reached with the employees.

The manager responsible for preparing the company's financial reports, Mr Massimiliano Bacchini, declares, 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 our books and accounting records.

Imola, 12 September 2025

IRCE SPA

Contacts: Investor relator: Mr. Sepriano Gianfranco Tel. + 39 0382 77535 e-mail: gianfranco.sepriano@irce-group.com

Head of Corporate Information: Ms. Elena Casadio Tel. + 39 0542 661220 e-mail: elena.casadio@irce-group.com

The IRCE Group is a major player in the winding conductors for electrical machinery and in the electrical cable sector. As of June 30, 2025, production was carried out in three plants in Italy and five abroad: Blackburn (UK), Joinville SC (Brazil), Ostrava (Czech Republic), Kochi (India), and Kierspe (Germany). The Group also includes five trading companies, four of which are abroad (in Germany, Spain, Switzerland, and Poland) and two currently inactive companies (China and India). In May 2025, the Nijmegen (NL) plant ceased production. The Group employs 675 people globally.

Consolidated statement of financial position

(Thousand of Euro)	2025 30 June	2024 31 December
ASSETS
Non current assets
Goodwill and other intangible assets	58	50
Property, plant and machinery	69,625	43,064
Equipments and other tangible assets	1,757	1,731
Assets under constructions and advances	22,545	41,609
Non current financial assets	7	7
Deferred tax assets	2,580	2,502
Other non current assets non financial	251	-
NON CURRENT ASSETS	96,823	88,963
Current assets
Inventories	115,727	94,345
Trade receivables	67,853	54,083
Tax receivables	151	114
Other current assets	3,809	5,316
Current financial assets	653	412
Cash and cash equivalent	9,929	13,859
CURRENT ASSETS	198,122	168,129
TOTAL ASSETS	294,945	257,092

	2025	2024
(Thousand of Euro)	30 June	31 December
EQUITY AND LIABILITIES
Shareholders' equity
Share capital	13,744	13,756
Reserves	135,589	130,268
Profit (loss) for the period	3,811	6,900
Shareholders' equity attributable to shareholders of Parent company	153,145	150,924
Shareholders equity attributable to Minority interests	(298)	(308)
TOTAL SHAREHOLDERS' EQUITY	152,847	150,616
Non current liabilities
Non current financial liabilities	40,716	38,023
Deferred tax liabilities	280	280
Non current provisions for risks and charges	553	558
Non current provisions for post employment obligation	3,513	3,685
NON CURRENT LIABILITIES	45,062	42,546
Current liabilities
Current financial liabilities	35,258	22,757
Trade payables	43,834	26,010
Current tax payables	3,251	1,277
(of which related parties)	2,380	644
Social security contributions	2,083	2,013
Other current liabilities	12,389	8,513
Current provisions for risks and charges	221	3,360
CURRENT LIABILITIES	97,036	63,930
SHAREHOLDERS' EQUITY AND LIABILITIES	294,945	257,092

Consolidated income statement

	2025	2024
(Thousand of Euro)	30 June	30 June
Sales revenues	204,086	208.407
Other revenues and income	1,308	672
TOTALE REVENUES AND INCOME	205,394	209.079
Raw materials and consumables	(164,837)	(170.773)
Change in inventories of work in progress and finished goods	9,005	11.455
Cost for services	(20,915)	(19.514)
Personnel costs	(17,173)	(16.868)
Amortization /depreciation/write off tangible and intagible assets	(3,066)	(3.834)
Provision and write downs	164	(200)
Other operating costs	(654)	(974)
EBIT	7,918	8.371
Financial income / (charges)	(992)	(382)
RESULT BEFORE TAX	6,926	7.989
Income taxes	(3,104)	(3.134)
NET RESULT FOR THE PERIOD	3,822	4.855
Net result attributable to non-controlling interests	10	11
Net result attributable to shareholders of the Parent Company	3,812	4.844

EARNINGS/(LOSSES) PER SHARES
- basic EPS for the period attributable to shareholders of the parent company	0.1441	0.1829
- diluted EPS for the period attributable to shareholders of the parent company	0.1441	0.1829

Consolidated statement of cash flow

	2025	2024
(Thousand of Euro)	30 June	30 June
OPERATING ACTIVITIES
Result of the period (Group and Minorities)	3,822	4,855
Adjustments for:
Depreciation / Amortization	3,066	3,834
Net change in deferred tax (assets) / liabilities	(98)	(253)
Capital (gains) / losses from disposal of fixed assets	(49)	(175)
Losses / (gains) on unrealised exchange rate differences	(44)	(301)
Provisions/write down (release/reversal)	(164)	200
Income taxes	3,203	3,387
Financial (income) / expenses	292	304
Operating result before changes in working capital	10,028	11,851
Income taxes paid	(953)	(416)
Financial charges paid	(2,433)	(1,523)
Financial income collected	2,141	1,753
Decrease / (Increase) in inventories	(21,609)	(24,363)
Change in trade receivables	(13,783)	(8,746)
Change in trade payables	17,957	7,702
Net changes in current other assets and liabilities	2,302	1,406
Net changes in current other assets and liabilities - related parties	(27)	1,133
Net changes in non current other assets and liabilities	(333)	(95)
CASH FLOW FROM OPERATING ACTIVITIES	(6,710)	(11,298)
INVESTING ACTIVITIES
Investments in intangible assets	(22)	(38)
Investments in tangible assets	(10,651)	(15,168)
Disposals of tangible and intangible assets	142	194
CASH FLOW FROM INVESTING ACTIVITIES	(10,531)	(15,012)
FINANCING ACTIVITIES
Repayments of loans	(2,271)	(3,075)
Obtainment of loans	5,000	10,000
Net changes of current financial liabilities	12,407	24,965
Net changes of current financial assets	(62)	(250)
Dividends paid to shareholders	(1,586)	(1,588)
Sell/(purchase) of own shares	(46)	(57)
CASH FLOW FROM FINANCING ACTIVITIES	13,442	29,995
NET CASH FLOW FROM THE PERIOD	(3,799)	3,686
CASH BALANCE AT THE BEGINNING OF THE PERIOD	13,859	14,167
Exchange rate differences	(131)	(227)
NET CASH FLOW FROM THE PERIOD	(3,799)	3,686
CASH BALANCE AT THE END OF THE PERIOD	9,929	17,626