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EDAG Engineering Interim / Quarterly Report 2026
9318_ir_2026-05-06_2bf5bb5a-dff4-46f9-8b31-03baf8d0c91a.pdf
Interim / Quarterly Report
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FINANCIAL YEAR 2026
REPORT ON THE FIRST QUARTER OF 2026
UNMANNED SYSTEMS BY EDAC
Your experts in advanced simulation, robust, reliable autonomous behavior, high-quality and reliable regulation
EDAC
Defence Solutions
VERTEIDIGUNG IST VERTRAUENSSACHE
UNSER PORTFOLIO
IST OFFSET-FÄHIG
GANZHEITLICHE ENTWICKLUNGEN UND
PRODUKTION IM BEREICH AIR, GROUND UND NAVAL
CONTENTS
KEY FIGURES AND EXPLANATIONS BY THE EDAG GROUP AS PER MARCH 31, 2026 ... 4
SUMMARY OF THE FIRST QUARTER OF THE 2026 FINANCIAL YEAR ... 8
THE EDAG SHARE ... 10
PRICE DEVELOPMENT ... 10
KEY SHARE DATA ... 11
INTERIM GROUP MANAGEMENT REPORT ... 12
BASIC INFORMATION ON THE GROUP ... 12
Business Model ... 12
Targets and Strategies ... 20
FINANCIAL REPORT ... 22
Macroeconomic and Industry-Specific Conditions ... 22
Financial Performance, Cash Flows and Financial Position of the EDAG Group in accordance with IFRS ... 23
HR Management and Development ... 27
FORECAST, RISK AND REWARD REPORT ... 28
Risk and Reward Report ... 28
Forecast ... 28
DISCLAIMER ... 31
ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS ... 32
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ... 32
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ... 34
CONSOLIDATED CASH FLOW STATEMENT ... 36
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ... 38
SELECTED EXPLANATORY NOTES ... 39
General Disclosures ... 39
Basic Principles and Methods ... 40
Changes in the Scope of Consolidation ... 43
Currency translation ... 44
Reconciliation of the Adjusted Operating Profit (Adjusted EBIT) ... 45
Segment Reporting ... 46
Contingent Liabilities/Receivables and Other Financial Obligations ... 50
Financial Instruments ... 51
Related Parties ... 57
Subsequent Events ... 59
LEGAL NOTICE ... 60
REPORT ON THE FIRST QUARTER OF 2026
KEY FIGURES AND EXPLANATIONS BY THE EDAG GROUP AS PER MARCH 31, 2026
| (in million € or %) | 1/1/2026 | 1/1/2025 |
|---|---|---|
| - 3/31/2026 | - 3/31/2025 | |
| Vehicle Engineering | 102.6 | 108.6 |
| Electrics/Electronics | 49.8 | 58.0 |
| Production Solutions | 22.5 | 30.3 |
| Consolidation | - 3.1 | - 4.3 |
| Total revenues¹ | 171.8 | 192.6 |
| Change: | ||
| Vehicle Engineering | -5.6% | -11.8% |
| Electrics/Electronics | -14.1% | -12.7% |
| Production Solutions | -25.6% | -9.9% |
| Change of revenues¹ | -10.8% | -11.5% |
| Vehicle Engineering | 2.5 | 0.8 |
| Electrics/Electronics | 0.9 | 0.6 |
| Production Solutions | - 1.6 | 0.3 |
| Adjusted EBIT | 1.9 | 1.6 |
| Adjusted EBITDA | 11.4 | 11.8 |
| EBIT | 1.9 | 1.6 |
| EBITDA | 11.4 | 11.8 |
| Vehicle Engineering | 2.4% | 0.7% |
| Electrics/Electronics | 1.9% | 1.0% |
| Production Solutions | -6.9% | 0.8% |
| Adjusted EBIT margin | 1.1% | 0.8% |
| Adjusted EBITDA margin | 6.6% | 6.1% |
| EBIT margin | 1.1% | 0.9% |
| Profit or loss | - 0.9 | - 0.9 |
| Earnings per share (€) | - 0.04 | - 0.04 |
¹ The performance figure "revenues" is used in the sense of gross performance (sales revenues and changes in inventories) in the following.
REPORT ON THE FIRST QUARTER OF 2026
REPORT ON THE FIRST QUARTER OF 2026
| (in million € or %) | 3/31/2026 | 12/31/2025 |
|---|---|---|
| Fixed assets | 298.6 | 302.9 |
| Net working capital | 84.1 | 94.2 |
| Net financial debt | - 79.4 | - 78.0 |
| Lease liabilities | - 135.5 | - 138.2 |
| Provisions | - 78.9 | - 92.2 |
| Equity | 88.9 | 88.6 |
| Balance sheet total | 568.0 | 587.2 |
| Equity ratio | 15.7% | 15.1% |
| Net financial debt/credit [-/+] / equity | 89.3% | 88.1% |
| (in million € or %) | 1/1/2026 - 3/31/2026 | 1/1/2025 - 3/31/2025 |
| Operating cash flow | 9.3 | 18.5 |
| Investing cash flow | - 2.5 | - 2.3 |
| Free cash flow | 6.7 | 16.2 |
| Adjusted cash conversion rate 1 | 77.4% | 80.2% |
| CapEx | 2.6 | 2.3 |
| CapEx/revenues | 1.5% | 1.2% |
1 The performance figure "adjusted cash conversion rate" is defined as the adjusted EBITDA less gross investments divided by the adjusted EBITDA. The adjusted EBITDA is calculated from the adjusted EBIT plus depreciation, amortization and impairment less expenses from purchase price allocation and non-recurring impairment charges related to the restructuring.
| 3/31/2026 | 12/31/2025 | |
|---|---|---|
| Headcount at end of period, incl. apprentices | 7,947 | 8,303 |
| Apprentices in % | 3.8% | 4.2% |
At €171.8 million, the revenue in the first quarter of 2026 was approx. €20.7 million or 10.8 percent below the previous year's level (Q1 2025: €192.6 million). The decline in revenue compared to the same period in the previous year can be seen in all three segments.
The adjusted EBIT figure in the 2026 reporting period was €1.9 million (Q1 2025: €1.6 million), which is equivalent to an adjusted EBIT margin of 1.1 percent (Q1 2025: 0.8 percent).
The adjusted EBITDA figure in the 2026 reporting period was €11.4 million, which is around €0.4 million below the previous year (Q1 2025: €11.8 million). The adjusted EBITDA margin amounts to 6.6 percent (Q1 2025: 6.1 percent).
The headcount, including trainees, on March 31, 2026 was 7,947 employees (12/31/2025: 8,303 employees). 4,841 of these employees were employed in Germany, and 3,106 in the rest of the world (RoW) (12/31/2025: [Germany: 5,205; RoW: 3,098]).
Gross investments in fixed assets amounted to €2.6 million in the reporting period, which was slightly above the level of the same period in the previous year (Q1 2025: €2.3 million). The equity ratio on the reporting date increased to 15.7 percent (12/31/2025: 15.1 percent).
The net financial debt on March 31, 2026 amounted to €79.4 million, which was at much the same level as December 31, 2025 (€78.0 million).
6 | REPORT ON THE FIRST QUARTER OF 2026
REPORT ON THE FIRST QUARTER OF 2026 | 7
SUMMARY OF THE FIRST QUARTER OF THE 2026 FINANCIAL YEAR
EDAG AT XPONENTIAL EUROPE – Trade fair appearance strengthens positioning in future-oriented markets
Autonomous systems have reached a new stage. Long considered a future technology, we're now seeing a shift toward concrete applications – in industry, infrastructure, and safety-critical sectors. This trend dominated the XPONENTIAL Europe, Europe's leading trade fair for autonomy and robotics, held in Düsseldorf in March, and paved the way for the EDAG Group's appearance. Instead of technological feasibility studies, integrated solutions took center stage at the trade fair. This marks a fundamental change in expectations for engineering service providers.
This is more than just a passing trend for EDAG. The company's appearance at the trade fair highlighted its role as a trusted engineering and industrialization partner for complex, software-defined mobility systems. Under the theme of modular, connected, and automated solutions, the EDAG Group presented its broad expertise – from concept development and system integration to industrial implementation. This included the company's key differentiating factor: its ability to scale innovative technologies into production-ready products.
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REPORT ON THE FIRST QUARTER OF 2026
"Autonomous systems must operate reliably to become economically viable," says CFO Holger Merz. "This is precisely where we come in: We combine engineering expertise with a deep understanding of systems to create solutions that can be integrated into real-world applications." This may sound like an obvious next step at first, but it is not. It involves a deeper focus on the system as a whole. Companies that take responsibility for the entire system – rather than merely supplying components – move towards the core of value creation and higher-margin projects.
This shift has significant financial implications. The defense and public sectors operate on different time scales than traditional industrial customers. Projects take longer to complete, budgets are politically driven, and there are significantly higher technological barriers to entry. Holger Merz puts it this way: "We see structurally stable, long-term demand and investment cycles in safety-critical applications and the public sector. This means we need to rethink our industrial roles."
The trade fair placed a special focus on applications in the field of advanced air mobility and on "dual-use" concepts that address both civilian and security-related scenarios. The EDAG Group made a strong appearance at the trade fair, showcasing its partnership with the technology company AIR, which was established in 2025. The partners showcased solutions in the field of electric vertical takeoff and landing (eVTOL) aircraft and unmanned aerial systems. The collaboration will be expanded gradually to efficiently scale up innovative aircraft based on modular platform concepts into industrial production.
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REPORT ON THE FIRST QUARTER OF 2026
THE EDAG SHARE
On January 2, 2026, the DAX started the financial year with 24,500 points. On January 13, the index rose to 25,421 points, its highest closing value in the reporting period. Following a sideways trend, the DAX began to decline in late February and reached its lowest closing value of 22,301 points during the reporting period on March 27. On March 31, the DAX closed the reporting period at 22,680 points. At 536.20 points, the STOXX Automobiles & Parts index recorded its highest closing value in the reporting period on January 2. Over the course of the first three months, the index fell, reaching its lowest closing value of 435.45 points on March 20. On March 31, the STOXX Automobiles & Parts Index closed the reporting period at 451.12 points.
1 Price Development
On January 2, 2026, the opening price of the EDAG share in XETRA trading was €5.34. Early in the year, the share price reached its highest closing price for the reporting period on January 8, at €5.06. It then fell to its lowest closing price of the reporting period, €3.66, on January 22. The price then showed a sideways trend. The share closed the reporting period on March 31 at €3.88. During the first three months of 2026, the average XETRA trade volume was 3,067 shares a day.
Source: Comdirect
REPORT ON THE FIRST QUARTER OF 2026
2 Key Share Data
| | 1/1/2026
– 3/31/2026 |
| --- | --- |
| Prices and trading volume¹ | |
| Closing price on March 31 (€) | 3.88 |
| Highest closing price (€) | 5.06 |
| Lowest closing price (€) | 3.66 |
| Average daily trading volume (number of shares) | 3,067 |
| Market capitalization on March 31 (€ million) | 97.00 |
¹ In XETRA trading
A current summary of the analysts' recommendations and target prices for the EDAG share, the current share price and financial calendar are available on our website, at https://ir.edag.com/en.
REPORT ON THE FIRST QUARTER OF 2026
12 | REPORT ON THE FIRST QUARTER OF 2026
INTERIM GROUP MANAGEMENT REPORT
1 Basic Information on the Group
1.1 Business Model
Three Segments
With the parent company, EDAG Engineering Group AG, Arbon (Switzerland), the EDAG Group is one of the largest independent engineering service providers. The entire group of companies will hereinafter be referred to as EDAG Group or EDAG.
Within the framework of its continuous development program, EDAG Group is accelerating the diversification of its portfolio. By taking this step, the company aims to consolidate its market position and meet both the changing needs of customers and the dynamic requirements of a range of different industries. The EDAG Group is focusing its international attention on selected fields of industry in addition to the international mobility industry. This includes an increasing number of customers from the defense sector and, as before, from the energy, semiconductor, chemical, and medical product industries. Due to the growth potential and special requirements in the defense sector, we are currently building up additional resources dedicated to this area. This also includes training, especially for employees who already have significant skills and experience in the existing specialist areas, particularly in the automotive industry.
As before, the EDAG Group's business is organized into the following segments: Vehicle Engineering, Electrics/Electronics and Production Solutions. We follow the sector-independent principle of production-optimized solutions, ensuring that development results are always tailored to production requirements.
Presentation of the Vehicle Engineering Segment
The Vehicle Engineering segment (VE) consists of services along the vehicle development process as well as responsibility for modules, derivatives and complete vehicles, from the initial idea through to the finished prototype. The segment is divided into the following divisions:
The Body Engineering division offers a wide range of vehicle development services. These include package & ergonomics, body assembly, surface design and interior and exterior development. A further focus is on the development of door, cover and gate systems. In addition, the range of services includes the design and development of glazing and the optical design of vehicle lighting systems including headlamps, rear lamps and small lamps. Innovative technologies and the integration and implementation of lightweight construction concepts play a crucial role in the division
Dimensional management which, by calculating tolerances and using simulation, helps to ensure the reproducibility and geometrical quality of the products, is increasingly gaining importance.
Interface management in the handling of complex module developments is also taking on an increasingly significant role. Systematic process management and close coordination between divisions help to optimize development times and improve product quality.
We regard sustainability and $\mathrm{CO}_{2}$ reduction as our guiding principles.
As an engineering service provider, we already have a major impact on the future carbon footprint of products in the early phases of their design and development. Our team of specialists develops sustainable solutions which take the entire product life cycle into account.
These include:
- Lifecycle assessments (LCA) to assess environmental impact
- Advice on what materials to select, in particular with regard to sustainable and recyclable materials
- Development of alternative drivetrain technologies and lightweight design solutions
- Strategies for decarbonization in production and supply chains
- Developing and marketing our own software to enable us to provide reliable information on the future $\mathrm{CO}_{2}$ footprint in the early stages of a project
REPORT ON THE FIRST QUARTER OF 2026
The services offered by the Vehicle Integration division range from engineering and simulation to component, system and complete vehicle validation for automobiles, commercial vehicles and motorcycles. We cover the entire spectrum of energy system and powertrain development through to integration with the corresponding energy storage systems (e.g. battery and hydrogen), and also develop intelligent, $\mathrm{CO}_{2}$-saving chassis solutions. Computer-aided engineering (CAE) is used in the functional design of components and systems through to the complete vehicle. To ensure readiness for series production, functionality and durability are validated in our test laboratories. In the new vehicle dynamics simulation center, it is now possible to test prototypes on an entirely virtual basis, so saving resources. Furthermore, our EMC center, which went into operation in 2024, has enabled us to further expand our comprehensive testing capacities. The electromagnetic compatibility (EMC) of components, complete vehicles and products across the various branches of industry is tested and adapted in this center.
Our Models & Vehicle Solutions division offers an extensive range of services, from styling to the physical validation of vehicles. We manufacture test vehicles, sub-assemblies, vehicle bodies and special, individual vehicle conversions. We are also one of the leading developers in the series production of high-quality hydrogen storage systems. Progress and the planning of large-scale MEGC (multiple element gas container) storage systems go hand in hand with the increasing demands for safe hydrogen storage solutions. We are continuing the development of our patented filling method to guarantee increased efficiency and safety.
Complete vehicle development and the development of interdisciplinary module packages are managed by the Project Management division with the involvement of our international subsidiaries. In this division, we provide support in areas ranging from the definition of the product strategy and concept development to series development and production. Project Management networks and directs all the development departments - internal and external - involved, in this way ensuring continuous design status progress throughout the development.
Just as the conclusion of a business transaction does not mean the end of the customer relationship, start of production (SOP) does not mark the end of the product development process. The After Sales division plays a vital role during both the market launch of a product and its life cycle on the market. If after sales requirements are integrated into the product development process at an early
REPORT ON THE FIRST QUARTER OF 2026
stage, overall costs can be reduced and customer satisfaction increased. Our After Sales Quality Management team optimizes development and production processes, ensures that suppliers are qualified, and guarantees the quality of our products. The Technical Editing team draws up legally required documents and literature for all target groups, while our After Sales Digilab maximizes the efficiency of our systems and provides customer-specific solutions.
Presentation of the Electrics/Electronics Segment
The service portfolio in the Electrics/Electronics segment (E/E) is divided into four divisions which provide comprehensive solutions for all relevant development tasks and the current challenges in electronics development. Systematic innovation management, the use of new agile development processes and rapid customer-oriented development are the basis for a sustainable, high quality cooperation in projects with customers.
Technical Sales in the E/E segment is responsible for the further development of this portfolio. To this end, market trends are identified at an early stage and incorporated into the service portfolio in accordance with customer requirements.
With a constantly evolving organization of excellence in the four areas of competence, the structure of the delivery organization of the E/E segment covers all engineering services necessary for a complete system solution. Projects are handled in cooperations across various segments and sites, in global delivery models.
The Systems Engineering division develops electrical and electronic systems and functions, through to entire E/E architectures. In this context, the division develops innovative domain or service-oriented E/E architectures on the basis of a fully integrated tool-based E/E architecture development process. Starting with the initial feature list, topology and the vehicle electrical system, through to integration in the corresponding vehicle, EDAG provides support and development services for all development phases through to series production. Both the overall systems and their components, sensors, actuators and controls, are taken into account during the development of electronic systems in all relevant functional groups of the E/E architecture. The core competency centers on the management of the development process throughout the entire development, following either an OEM or EDAG process model. Whereas there is a tendency to perform more specifying activities at the beginning, the focus shifts towards controlling system integration and system
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validation as the project progresses, concluding with support during the approval phase of the market-ready systems.
The Integration & Validation division combines functional E/E validation skills. The key aspects here are the creation of test strategies and test specifications for testing electronic vehicle functions, and carrying out the corresponding tests. These are carried out in virtual test environments, in the laboratory, at a test site, or on the road, in a variety of ways ranging from manual to highly automated. This division also handles the conception and provision of the required testing technology and infrastructure, which involves developing and setting up optimized test facilities in accordance with the relevant test requirements. All E/E aspects relating to prototype and test vehicle construction are also covered by this division.
E/E Software & Digitalization develops hardware and software components. EDAG provides support throughout the entire development cycle from the concept phase to series production, and assumes responsibility for all development activities. Development in line with the ASPICE standard in highly automated tool chains and agile development teams is one of the daily challenges faced in the endeavor to ensure efficient processing with high-quality engineering in the projects. Information technology is another focus of Software & Digitalization. Innovative services are developed here, on behalf of customers. Key aspects are the connection of vehicles to the mobility backend, user interfaces and the development of specialized tools for mobility development. The E/E service portfolio also includes agile development processes and distinctive technological expertise in classic software development in the frontend and backend and in special applications in the field of AI and data science.
In its cross-company interdisciplinary function, competence in the field of Safety & Security is taking on an increasingly significant role. One of the division's key points of focus is functional safety in line with the ISO 26262 standard. In society's endeavors to minimize risks (Vision Zero), comprehensive security concepts that also cover the infrastructure and monitoring elements, vehicle guidance systems for instance, are being developed. Through legal requirements for the type approval of vehicles (UNECE R 155) and standards such as ISO/SAE 21434, cybersecurity continues to become increasingly important. Here, too, EDAG offers a wide, constantly expanding service portfolio.
REPORT ON THE FIRST QUARTER OF 2026
Process & Product Data Management (in short: PPDM) provides a key addition to the EDAG service portfolio. Applying its in-depth customer-specific process and systems knowledge, PPDM deals with the project-spanning, cross-divisional management of all process operations, in this way delivering systematic and transparent results which enable the individual milestones in the product development process to be achieved. PPDM services range from classic OEM tasks such as bills of materials and release management, project back office management, version and configuration management, test vehicles and vehicle management, through to homologation, localization and certification management. The fields of consulting & strategy, environmental management and life cycle management round off this wide-ranging field of activity and provide our clients with ideas for a consistent and more efficient design of their operational methods and processes.
Presentation of the Production Solutions Segment
In the EDAG Group, the "Production Solutions" (PS) segment is the key driver for industrial solutions related to smart factories, digital production systems, and connected industrial value creation. PS positions itself as a comprehensive, international engineering partner that integrates products, processes, production, and people into a unified approach, and thus actively shapes its clients' industrial transformation.
With locations around the world, including in Germany, the United States, India, Hungary, and Austria, Production Solutions supports customers across a wide range of industries, combining global engineering expertise with local market knowledge and implementation expertise.
The service portfolio of Production Solutions is centered around the strategic portfolio elements Smart Factory, Smart People, Smart Ecosystem, and the Industrial Metaverse. These elements intersect and, together, form the foundation for end-to-end, digital, and sustainable production solutions—from strategic planning to stable operations.
Smart Factory refers to the comprehensive planning, development, and implementation of modern production systems. The goal is to design factories to be cost-effective, scalable, and future-proof, and to use digital tools to validate investment decisions digitally at an early stage. The systems integrate production, logistics, building, and IT infrastructure and optimize them throughout the entire
REPORT ON THE FIRST QUARTER OF 2026
factory lifecycle. In the field of automation, Production Solutions is actively driving the use of AI Robotics and Physical AI. Intelligent, software-based automation solutions pave the way for adaptive production systems, autonomous robotics, and a new level of human-machine interaction, thus contributing greatly to the flexibility and future-proofing of industrial value creation.
With Smart People, Production Solutions consistently places people at the heart of the digital factory. Digital solutions for information, collaboration, training, and empowerment ensure that employees – from management to the shop floor – are effectively integrated into networked production systems.
The Smart Ecosystem element of the portfolio focuses on the development of digital business models and connected IT architectures for physical products and production systems. A key component of this is IT/OT convergence across the automation pyramid, taking into account regulatory and normative requirements for cybersecurity. Production Solutions develops secure, integrated system landscapes that reliably connect industrial processes, data flows, and automation systems.
In addition, Production Solutions supports its customers with AI Factory concepts and related consulting services to help them systematically integrate artificial intelligence into development, production, and operations – from maturity assessment and use case prioritization to sustainable implementation.
The Industrial Metaverse serves as the technological bridge across all portfolio elements. It connects the real and virtual worlds into an integrated industrial work environment that brings together digital twins of products, production processes, and buildings, and allows for virtual validation of decisions.
The Production Solutions service portfolio is divided into three divisions: Planning Smart Factory, Engineering Smart Factory, and Feynsinn, together forming an integrated service package for sustainable production solutions.
The Planning Smart Factory division is responsible for the comprehensive, future-oriented planning of production systems and factories, always starting with the development of a smart factory strategy that is economically, technologically, and environmentally sound, based on the customer's business objectives. The services range from the analysis of existing production and logistics structures, through
REPORT ON THE FIRST QUARTER OF 2026
feasibility studies, master and layout planning, to the definition of investment and implementation strategies for greenfield and brownfield projects. This involves an integrated assessment of production processes, logistics, buildings, building services (BS), IT, and automation structures. Planning Smart Factory takes on the role of general planner, general contractor, or general manager within Production Solutions. The division is responsible for the overall planning and management of complex factory projects, including the coordination of all specialized trades and cross processes throughout all phases of the project. A cornerstone of this approach is the digital twin of the Smart Factory, which is used to virtually validate production and logistics concepts, verify key performance indicators, and evaluate variants at an early stage. Simulations, virtual factory models, and VR and AR applications provide a transparent basis for investors, operators, and management to make informed decisions. Planning Smart Factory thus creates the conditions for secure investments, scalable factory concepts, and a shorter time-to-market.
The Engineering Smart Factory division translates planned production concepts into technical designs and is responsible for their implementation through to the delivery of turnkey production solutions. The focus is on developing customized, productive, and sustainable production systems – tailored to the product, process, and regional requirements. The range of services includes mechanical, electrical, and mechatronic engineering of production facilities and special-purpose machines, the selection and integration of automation and robotics solutions, and virtual and real commissioning. By consistently utilizing virtual commissioning, simulation, and digital validation, risks can be mitigated early on, ramp-up times can be shortened, and investments can be optimally coordinated in terms of timing. In addition, Engineering Smart Factory assists with the ramp-up of complex production systems, coordinates suppliers, and – depending on the project – assumes the role of general contractor or general manager. The goal is to ensure maximum productivity in series production and to design production systems that are flexible, scalable, and future-proof.
Feynsinn is a trade name belonging to the EDAG Group. The brand assists companies in digitizing their product and production development processes. Feynsinn acts as a consultant on equal footing, offering hands-on implementation expertise. It focuses on process analysis and simplification, system automation, and the integration of disciplines to break down silos. With its network of (process) consultants and experts in digital twins, system architectures, and data (formats) of all types (CAX from product and production development), Feynsinn increases the
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efficiency of value-adding processes from development through sales and marketing in the automotive and manufacturing industries. Feynsinn's metys platform addresses applications focused on visualization and experience in industrial settings. These include XR solutions (VR/AR/MR), virtual training and collaboration solutions, digital worker assistance systems, and applications to support decision-making reliability, training, and communication. The solution consistently places people at the heart of the process – as connected decision-makers, planners, and employees. This allows Feynsinn to lay the foundation for the Industrial Metaverse: a homogeneous data and IT infrastructure that integrates product, process, and production data, enables new digital business models, and supports the sustainable further development of the smart factory.
1.2 Targets and Strategies
Since its foundation in 1969, the EDAG Group has been continually developing. With an interdisciplinary team of some 8,000 employees, the EDAG Group, in its global network spanning approximately 30 international subsidiaries, realizes projects in the fields of mobility, defense, industry and public.
Working across all industries, the EDAG Group develops products and production facilities that take all manufacturing-relevant processes into full account and integrate them into a holistic network. With its own 360-degree development approach, the EDAG Group covers the entire spectrum of modern mobility, combining innovative technologies and future-oriented concepts. Innovative strategies, data integration, and a digital infrastructure form the foundation for development solutions – ranging from highly automated industrial environments and defense applications to sustainable concepts for public sector clients.
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Corporate Purpose
The focus of our activities is always on people and their need for progress. From this, our corporate purpose "YOUR GLOBAL ENGINEERING & TECHNOLOGY EXPERTS" is also derived.
This emphasizes our motivation to reinvent ourselves every day and so be in a position to provide our customers, partners and society as a whole with technological solutions that will pave the way for change. The aim is to build on what has already been tried and tested, while at the same time promoting agility, new ideas and further developments. For our employees, "reinvent yourself" creates a balance between stability and change.
Company Vision and Mission
Our corporate purpose is the basis from which the vision for the EDAG Group is derived: "Joining forces to shape the future of mobility and industry. Efficiently. Safely. Sustainably."
This gives us a clear picture of the future and the mission of our company.
- Talent academy,
- competence center,
- agile future and market-shaping company,
- game changer & visionary,
- sustainable (socially, economically, ecologically) engineering service provider.
2 Financial Report
2.1 Macroeconomic and Industry-Specific Conditions
According to the International Monetary Fund's (IMF) latest outlook on April 14, 2026, global economic growth is expected to be 3.1 percent for 2026, which is slightly lower compared with 3.4 percent in the previous year.
According to the VDA [Association of the German Automotive Industry] (as of April 2026), the first quarter of the 2026 financial year saw an increase in sales of new vehicles in Germany. At 0.7 million units, this figure was 5.2 percent higher than in the previous year.
According to the VDA, 3.5 million new passenger cars were registered in the European automotive market (EU, EFTA, and the UK) through March 2026. This represents a 4.1 percent increase compared to the same period last year. The development of the five largest individual markets varied widely: whereas the numbers of new vehicles registered in France (-2.1 percent) were down in the first quarter of the financial year, higher numbers of new registrations were recorded in German (+5.2 percent), the United Kingdom (+5.9 percent), Spain (+7.6 percent) and Italy (+9.2 percent) compared to the same period in the previous year.
In Germany, an increase of 33.3 percent in new registrations of electric passenger cars (BEV and PHEV) was recorded in the first quarter of 2026. New BEV (Battery Electric Vehicle) registrations increased by 41.2 percent in, while PHEV (plug-in hybrid electric vehicle) registrations increased by 19.2 percent compared to the same period in the previous year.
As a result of the increase in the number of electric car registrations (BEV and PHEV), with sales of 235,744 vehicles (previous year: 176.898), the proportion of electric cars in relation to the total number of cars sold rose to 33.7 percent in the first quarter of 2026 (same period in the previous year: 26.6 percent). Likewise, the number of hybrid passenger cars rose to 206,566 (29.5 percent) in the reporting period, compared to 192,187 (28.9 percent) in the first quarter of 2025. In contrast, registrations of gasoline-powered passenger cars declined both in terms of absolute sales figures to 159,058 vehicles (same period in the previous year: 189,741) and in terms of market share to 22.7 percent (same period in the previous year:
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28.6 percent). At 96,311 vehicles, the absolute sales figures for diesel-powered passenger cars have likewise fallen compared to the previous year's figure of 102,843 vehicles. The proportion of all diesel-powered cars sold in the reporting period was 13.8 percent (same period in the previous year: 15.5 percent).
In the USA, the volume on the light vehicle market (passenger cars and light-duty) in the first quarter of the reporting year 2026 decreased by 5.3 percent to 3.7 million vehicles compared to the same period in the previous year. In China, the electromobility sector is growing less dynamically than before – partly due to the elimination of the full exemption from passenger car purchase tax for NEVs (New Energy Vehicles) and the expiry of regional subsidy programs. Consequently, only 4.2 million new vehicles in this category were sold by the end of March 2026, a reduction of 17.3 percent compared to the same period in the previous year. With 1.0 million vehicles, Japan also saw a 5.4 percent decline in new registrations compared to the same period in the previous year. An increase in market volume was also observed in India with 1.3 million (+13.2 percent) and Brazil with 0.6 million vehicles (+15.5 percent) in the reporting period.
In the latest publication of the ZVEI Economic Barometer dated April 10, 2026, the German Electrical and Digital Manufacturers' Association (ZVEI e. V.) recorded an increase of 2.3 percent in incoming orders in the German electrical and digital industry in the first two months of the 2026 reporting year. Orders from Germany increased by 2.8 percent, the increase among foreign customers amounts to 1.8 percent.
2.2 Financial Performance, Cash Flows and Financial Position of the EDAG Group in accordance with IFRS
Financial Performance
Development of the EDAG Group
As of March 31, 2026, orders on hand increased to €366,1 million, compared to €336.2 million as of December 31, 2025. Neither potential call-offs relating to general agreements nor call-offs relating to production orders are included in the orders on hand. In the quarter just ended, the EDAG Group generated incoming
REPORT ON THE FIRST QUARTER OF 2026
orders amounting to €195.3 million, which, compared to the same period in the previous year (€229.7 million), represents a decrease of €34.5 million (-15.0 percent).
At €171.8 million, revenue in the first quarter was approx. €20.7 million or 10.8 percent below the previous year's level (Q1 2025: €192.6 million). The decline in revenue compared to the same period in the previous year is primarily a result of the overall still tense market situation, and is reflected in all three segments.
Other income, amounting to €4.2 million, remained at the previous year's level.
At €17.0 million, materials and services expenses decreased compared to the level of the previous year (Q1 2025: €18.5 million). The materials and services expenses ratio stood at 9.9 percent, which is a slight increase compared to the same period in the previous year (Q1 2025: 9.6 percent). At 3.2 percent, the materials expenses ratio is below the previous year's level (Q1 2025: 3.5 percent). On the other hand, at 6.7 percent, the ratio of service expenses in relation to the revenues was above the level of the same period in the previous year (Q1 2025: 6.1 percent).
In the quarter just ended, the company's workforce, including apprentices, numbered 8,041 employees on average, which was below the previous year's level (Q1 2025: 8,993 employees). Compared to the same period in the previous year, the EDAG Group's personnel expenses decreased by 11.7 percent to €125.0 million in the reporting period (Q1 2025: €141.5 million), primarily as a result of the declining headcount.
Depreciation, amortization and impairments totaled €9.5 million (Q1 2025: €10.2 million).
At €1.9 million (Q1 2025: €1.6 million), both EBIT and adjusted EBIT were above the level of the previous year. This resulted in an EBIT margin and an adjusted EBIT margin of 1.1 percent (Q1 2025: 0.9 percent and 0.8 percent, respectively).
The financial result for the first quarter of 2026 was -€3.3 million, (Q1 2025: -€3.1 million).
24 | REPORT ON THE FIRST QUARTER OF 2026
During the reporting period, the EDAG Group recorded a slightly lower loss (Q1 2026: -€0.9 million) than in the same period of the previous year (Q1 2025: -€0.9 million).
Development of the Vehicle Engineering Segment
Incoming orders in the first quarter of 2026 amounted to €128.6 million, which was below the level of the same period in the previous year (Q1 2025: €132.0 million). At €102.6 million, revenues were also below the previous year's level (Q1 2025: €108.6 million). All in all, an EBIT of €2.5 million was reported for the Vehicle Engineering segment in the quarter just ended (Q1 2025: €0.8 million). The adjusted EBIT margin amounted to 2.4 percent, which was well below the level of the same period in the previous year (Q1 2025: 0.7 percent).
Development of the Electrics/Electronics Segment
Incoming orders in the first quarter decreased by €20.7 million to €48.6 million compared to the same period in the previous year (Q1 2025: €69.3 million). Revenue totaled €49.8 million, which was also below the previous year's level of €58.0 million. The adjusted EBIT stood at €0.9 million (Q1 2025: €0.6 million). The adjusted EBIT margin amounted to 1.9 percent (Q1 2025: 1.0 percent), which was well above the level of the same period in the previous year.
Development of the Production Solutions Segment
In the Production Solutions segment, incoming orders in the first quarter amounted to €22.4 million, which was well below the level of the previous year (Q1 2025: €37.2 million). At €22.5 million, revenue in the first quarter just ended was well below the previous year's level (Q1 2025: €30.3 million), as was the adjusted EBIT margin, which stood at -6.9 percent (Q1 2025: 0.8 percent). Overall, the adjusted EBIT for the Production Solutions segment stood at -€1.6 million in the first quarter just ended (Q1 2025: €0.3 million).
Cash Flows and Financial Position
The EDAG Group's statement of financial position total decreased by €19.2 million to €568.0 million, and was therefore below the level of December 31, 2025 (€587.2 million). At €337.2 million, non-current assets were slightly below the previous year's level (12/31/2025: €340.7 million). In the current assets, there was a notable increase of €34.7 million in the contract assets. By way of contrast, the accounts receivable decreased significantly by €46.1 million. These changes reflect
REPORT ON THE FIRST QUARTER OF 2026
the typical development for EDAG in the first three months of a financial year, in line with the company's business activities. Cash and cash-equivalents decreased by €42.9 million to €39.0 million.
On the equity, liabilities and provisions side, there was an increase in equity from €88.6 million to €88.9 million. The equity ratio on the reporting date was 15.7 percent, which was above the level of the previous year (12/31/2025: 15.1 percent).
Non-current liabilities and provisions decreased to €211.2 million (12/31/2025: €215.4 million). Current liabilities and provisions decreased by €15.3 million to €267.9 million, (12/31/2025: €283.3 million).
In the first quarter of 2026 just ended, the operating cash flow was €9.3 million (Q1 2025: €18.5 million). The decrease can be attributed mainly to income tax refunds received in the previous year.
At €2.6 million, gross investments in the reporting period were slightly higher than in the previous year (Q1 2025: €2.3 million). At 1.5 percent, the ratio of gross investments in relation to revenues was also slightly above the level of the previous year (Q1 2025: 1.2 percent).
On the reporting date, unused lines of credit in the amount of €106.4 million exist in the EDAG Group (12/31/2025: €103.6 million). The Executive Management regards the overall economic situation of EDAG Group AG as challenging. The company was able to meet its payment obligations at all times throughout the reporting period.
REPORT ON THE FIRST QUARTER OF 2026
2.3 HR Management and Development
The success of the EDAG Group depends to a significant extent on committed and well qualified employees. Behind the company's comprehensive service portfolio are people with widely differing occupations and qualifications. In addition, the EDAG Group is also characterized by the special commitment and attitude of its employees. Throughout its long-standing history, EDAG has always ensured that both young and experienced employees are offered interesting and challenging activities and projects, and are provided with the prospect of and the necessary space for personal responsibility and decision-making. And this is the primary focus of both our human resources management and development. For a more detailed representation of HR management and development, please see the Group Management Report in the Annual Report for 2025.
On March 31, 2026, the EDAG Group employed a workforce of 7,947 people (12/31/2025: 8,303 people). Personnel expenses in the reporting period amounted to €125.0 million (Q1 2025: €141.5 million).
REPORT ON THE FIRST QUARTER OF 2026
3 Forecast, Risk and Reward Report
3.1 Risk and Reward Report
The following changes to the risks and rewards described in the Group Management Report in the Annual Report for 2025 have occurred:
Operative risks in the first quarter of 2026 are in risk category A (2025: B), with an unchanged medium probability of occurrence. These adjustments are due to the still tense market situation.
On the date of publication of the Consolidated Interim Report, the Group Executive Management still does not believe that any of the risks reported and assessed in the Group Management Report in the Annual Report for 2025 will jeopardize the existence of the company. The effects of geopolitical and macroeconomic uncertainties and the threat of protectionist trade restrictions do, however, pose a risk to EDAG.
In our opinion, our strategic orientation and financial direction, our position on the market and the measures we have taken all provide a sound basis for the successful handling of the existing risks and the challenges they present. For a more detailed representation of the Risk and Reward Report, please see the Group Management Report in the Annual Report for 2025.
3.2 Forecast
According to the latest IMF estimate announced on April 14, 2026, economic performance in Germany is expected to grow in the 2026 reporting year (+0.8 percent); 1.2 percent growth is forecast for 2027. The IMF expects a growth rate of 1.1 percent in 2026 and of 1.2 percent in 2027 for the eurozone. Growth of the US economy is expected to reach 2.3 percent in 2026, while a growth rate of 2.1 percent is anticipated in 2027. According to the latest estimate, China, with forecasts for a 4.4 percent increase in economic performance in 2026 and 4.0 in 2027, will continue to be a growth engine for the global economy. This expected growth in China will still be surpassed by India, for which an increase in economic performance of 6.5 percent is forecast for both 2026 and 2027.
REPORT ON THE FIRST QUARTER OF 2026
In the major international automobile markets, the business environment of the automotive industry in 2026 will continue to be challenging. Geopolitical and macroeconomic uncertainties, the threat of protectionist trade restrictions and persistently high energy and consumer prices are adversely impacting future development.
In its forecast of April 30, 2026, the VDA therefore anticipates just a slight increase in the number of registrations in the passenger car/light vehicle markets in Europe (2 percent) and a decrease in the USA (4 percent) in 2026. At 1 percent, the growth rate forecast by the VDA for the Chinese market in 2026 is below the level of growth in the previous year 2025 (4 percent). The declining momentum is partly due to the fact that, following relatively strong growth, another historically high market volume was reached in the years 2024 and 2025 already. In its annual press conference on February 10, 2026, the VDA forecast that there would be a total of 81.2 million new vehicle registrations (cars and light commercial vehicles) in the current financial year.
Besides the sales figures, however, technological and digital trends are having an enormous influence not just on our own business model, but also on those of the OEMs. In particular, a large number of automotive startup companies can see an opportunity to reshape the mobility of the future. The current emission standards and far-reaching sustainability regulations are making the further development of classic powertrain types essential, and promoting the integration of alternative powertrains. The BEV/PHEV technologies are also becoming increasingly important. In addition, however, e-fuels and the hydrogen-based fuel cell are providing high-tech engineering service providers with diverse opportunities. Additional challenges for all market participants are being created by the future-oriented fields of software, sensors, autonomous and connected driving, and the development of artificial intelligence. The development of new digital business fields and mobility services necessitates additional development and capacity requirements, which could lead to new growth opportunities for the engineering service market. The continuing consolidation of the engineering service providers and changed responsibility models in the drafting of work contracts will also bring about lasting changes within the sector.
As a global-level partner to our customers, EDAG wants to operate successfully and achieve profitable growth rates again. EDAG is one of the top engineering service providers in the automotive sector, and well positioned to handle the market changes
REPORT ON THE FIRST QUARTER OF 2026
towards increasingly large and complex projects with more and more engineering responsibility. Targeted investments and a clear focus on our performance and technology spectrum have strengthened our international market position for fully integrated vehicle development and large module packages. By creating a synergy between the flexible and mobile application of our expertise, the utilization of our internal, Global Delivery resources, and an international project management team, we strive, at a global level, to meet our customers' expectations.
The market for engineering services remains highly dynamic. With a growing focus on $\mathrm{CO}_{2}$ reduction, the development of alternative drive concepts is being massively accelerated. Trend topics such as highly automated driving and data-based business models call for completely new vehicle architectures, and are increasingly leading to a separation of hardware and software in development. The large number of powertrain variants will make flexible and networked smart factories indispensable. All these developments are driving the demand for development services, and will, in the medium to long term, lead to considerable opportunities. The VDA anticipates an investment volume of €320 billion in research and development in the automotive industry in the period until 2029¹; to this must be added capital investments in the amount of approx. €220 billion on the conversion of existing and the construction of new plants. We expect the defense sector, in particular, to demonstrate a high willingness to invest and attractive medium- to long-term growth prospects by 2026.
We do not at present see any risk to the continued existence of the company in the geopolitical conflicts, the persistently high level of energy and staffing costs and the general slowdown in purchasing, but do see a risk that its development might be impaired. The ongoing dynamic situation in connection with geopolitical conflicts, and to some extent with the protectionist economic policies being implemented in the global environment, harbors uncertainties the development of which cannot be foreseen. It is difficult to reliably predict the possible consequences for supply chains and the availability of pre-products and raw materials in the industries relevant to us. With the exceptional uncertainties arising as a result, companies across all sectors find themselves facing considerable challenges when it comes to forecasting economic development and deriving a reliable and dependable quantitative outlook. On the reporting date, the Group has unused lines of credit with credit institutions in the amount of €106.4 million currently.
¹ Version: May 21, 2025 according to VDA
REPORT ON THE FIRST QUARTER OF 2026
Delays in the awarding of contracts, project cancellations, heterogeneous capacity utilization in different areas and locations, and continuing price pressure still pose substantial risks for engineering service providers.
For the 2026 financial year, EDAG is forecasting a development of revenues in the range of approx. +/-5 percent and an adjusted EBIT margin which, according to current estimates, will be in a positive range of up to approx. 3 percent. It is assumed that the investment rate is likely to remain in the region of approx. 2 to 3 percent.
However, the estimates outlined here are still largely dependent on the uncertainties described above.
The following table provides a summary of the outlook for 2026:
| in € million | 2025 | Forecast 2026 |
|---|---|---|
| Group | ||
| Sales revenues | 714.0 | Changes of around +/- 5 percent |
| Adjusted EBIT margin | -1.8% | Positive level of up to approx. 3 percent |
| Investment rate | 1.8% | Approx. 2 to 3 percent |
4 Disclaimer
The Interim Group Management Report contains future-based statements related to anticipated developments. These statements are based on current projections, which by their nature include risks and uncertainties. Actual results may differ from the statements provided here.
REPORT ON THE FIRST QUARTER OF 2026
ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS
1 Consolidated Statement of Comprehensive Income
| in € thousand | 1/1/2026
– 3/31/2026 | 1/1/2025
– 3/31/2025 |
| --- | --- | --- |
| Profit or loss | | |
| Sales revenues and changes in inventories¹ | 171,812 | 192,558 |
| Sales revenues | 171,972 | 191,822 |
| Changes in inventories | - 160 | 736 |
| Other income | 4,204 | 4,243 |
| Material expenses | - 17,038 | - 18,502 |
| Gross profit | 158,978 | 178,299 |
| Personnel expenses | - 125,012 | - 141,525 |
| Depreciation, amortization and impairment | - 9,481 | - 10,196 |
| Net result from impairment losses/impairment loss reversal of financial assets | 554 | - 24 |
| Other expenses | - 23,154 | - 24,916 |
| Earnings before interest and taxes (EBIT) | 1,885 | 1,638 |
| Result from investments accounted for using the equity method | - 261 | 343 |
| Financial income | 188 | 835 |
| Financing expenses | - 3,200 | - 4,279 |
| Financial result | - 3,273 | - 3,101 |
| Earnings before taxes | - 1,388 | - 1,463 |
| Income Taxes | 462 | 487 |
| Profit or loss | - 926 | - 976 |
¹ Described below in simplified terms as revenues.
32 | REPORT ON THE FIRST QUARTER OF 2026
REPORT ON THE FIRST QUARTER OF 2026
| in € thousand | 1/1/2026
– 3/31/2026 | 1/1/2025
– 3/31/2025 |
| --- | --- | --- |
| Profit or loss | - 926 | - 976 |
| Other comprehensive income | | |
| Profits/losses reclassifiable under certain conditions | | |
| Currency translation differences | | |
| Profits/losses included in equity from currency translation differences | 467 | - 365 |
| Total profits/losses reclassifiable under certain conditions | 467 | - 365 |
| Not reclassifiable profits/losses | | |
| Revaluation of net obligation from defined benefit plans | | |
| Revaluation of net obligation from defined benefit plans before taxes | 1,198 | 1,563 |
| Deferred taxes on defined benefit plans | - 358 | - 469 |
| Income and expenses included in equity from shares accounted for using the equity method, net of tax | - | - |
| Total not reclassifiable profits/losses | 840 | 1,094 |
| Total other comprehensive income before taxes | 1,665 | 1,198 |
| Total deferred taxes on the other comprehensive income | - 358 | - 469 |
| Total other comprehensive income | 1,307 | 729 |
| Total comprehensive income | 381 | - 247 |
| From the profit or loss attributable to: | | |
| Shareholders of the parent company | - 914 | - 934 |
| Non-controlling interests | - 12 | - 42 |
| From the total comprehensive income attributable to: | | |
| Shareholders of the parent company | 387 | - 214 |
| Non-controlling interests | - 6 | - 33 |
| Earnings per share of shareholders of EDAG Group AG [diluted and basic in €] | | |
| Earnings per share | - 0.04 | - 0.04 |
2 Consolidated Statement of Financial Position
| in € thousand | 3/31/2026 | 12/31/2025 |
|---|---|---|
| Assets | ||
| Goodwill | 75,957 | 75,933 |
| Other intangible assets | 3,097 | 3,532 |
| Property, plant and equipment | 85,673 | 86,897 |
| Rights of use from leasing | 114,437 | 116,798 |
| Financial assets | 158 | 186 |
| Investments accounted for using the equity method | 19,285 | 19,546 |
| Non-current other financial assets | 542 | 548 |
| Non-current other non-financial assets | 1,214 | 1,112 |
| Deferred tax assets | 36,842 | 36,167 |
| Non-current assets | 337,205 | 340,719 |
| Inventories | 4,077 | 5,217 |
| Current contract assets | 96,199 | 61,503 |
| Current accounts receivable | 60,852 | 106,942 |
| Current other financial assets | 2,558 | 2,540 |
| Current securities, loans and financial instruments | 28 | 48 |
| Current other non-financial assets | 24,802 | 23,437 |
| Income tax assets | 3,318 | 3,892 |
| Cash and cash equivalents | 38,962 | 42,931 |
| Current assets | 230,796 | 246,510 |
| Assets | 568,001 | 587,229 |
34 | REPORT ON THE FIRST QUARTER OF 2026
in € thousand
3/31/2026
12/31/2025
| Equity, liabilities and provisions | 3/31/2026 | 12/31/2025 |
|---|---|---|
| Subscribed Capital | 920 | 920 |
| Capital reserves | 40,000 | 40,000 |
| Retained earnings | 57,654 | 58,658 |
| Reserves from profits and losses recognized directly in equity | - 3,537 | - 4,377 |
| Currency translation differences | - 6,280 | - 6,741 |
| Equity attributable to shareholders of the parent company | 88,757 | 88,460 |
| Non-controlling interests | 127 | 133 |
| Equity | 88,884 | 88,593 |
| Provisions for pensions and similar obligations | 31,567 | 32,141 |
| Other non-current provisions | 2,262 | 2,216 |
| Non-current financial liabilities | 64,463 | 65,144 |
| Non-current lease liabilities | 112,677 | 115,725 |
| Non-current other financial liabilities | 110 | 110 |
| Non-current other non-financial liabilities | 21 | 27 |
| Deferred tax liabilities | 71 | 9 |
| Non-current liabilities and provisions | 211,171 | 215,372 |
| Current provisions | 45,071 | 57,813 |
| Current financial liabilities | 53,948 | 55,875 |
| Current lease liabilities | 22,813 | 22,524 |
| Current contract liabilities | 62,267 | 63,754 |
| Current accounts payable | 26,572 | 26,722 |
| Current other financial liabilities | 3,752 | 3,633 |
| Current other non-financial liabilities | 52,735 | 50,603 |
| Current income tax liabilities | 788 | 2,340 |
| Current liabilities and provisions | 267,946 | 283,264 |
| Equity, liabilities and provisions | 568,001 | 587,229 |
REPORT ON THE FIRST QUARTER OF 2026
3 Consolidated Cash Flow Statement
| in € thousand | | 1/1/2026
– 3/31/2026 | 1/1/2025
– 3/31/2025 |
| --- | --- | --- | --- |
| | Profit or loss | - 926 | - 976 |
| +/- | Income tax expenses/income | - 462 | - 487 |
| - | Income taxes paid | - 1,432 | 10,100 |
| + | Financial result | 3,273 | 3,101 |
| + | Interest received | 173 | 710 |
| +/- | Depreciation and amortization/write-ups on tangible and intangible assets | 9,481 | 10,196 |
| +/- | Other non-cash item expenses/income and changes recognized directly in equity | 214 | 809 |
| +/- | Increase/decrease in non-current provisions | - 549 | - 1,032 |
| -/+ | Profit/loss on the disposal of fixed assets | - 7 | - 35 |
| -/+ | Increase/decrease in inventories | 1,082 | - 1,865 |
| -/+ | Increase/decrease in contract assets, receivables and other assets that are not attributable to investing or financing activities | 11,299 | 7,810 |
| +/- | Increase/decrease in current provisions | - 12,816 | - 2,038 |
| +/- | Increase/decrease in accounts payable and other liabilities and provisions that are not attributable to investing or financing activities | - 77 | - 7,782 |
| = | Cash inflow/outflow from operating activities / operating cash flow | 9,253 | 18,511 |
| + | Deposits from disposals of tangible fixed assets | 25 | 12 |
| - | Payments for investments in tangible fixed assets | - 2,476 | - 2,130 |
| - | Payments for investments in intangible fixed assets | - 97 | - 202 |
| + | Deposits from disposals of financial assets | 11 | 5 |
| - | Payments for investments in financial assets | - 8 | - 28 |
| = | Cash inflow/outflow from investing activities/investing cash flow | - 2,545 | - 2,343 |
REPORT ON THE FIRST QUARTER OF 2026
REPORT ON THE FIRST QUARTER OF 2026
| in € thousand | 1/1/2026
– 3/31/2026 | 1/1/2025
– 3/31/2025 |
| --- | --- | --- |
| - Interest paid | - 2,358 | - 3,530 |
| - Borrowing of financial liabilities | 215 | - |
| - Repayment of financial liabilities | - 3,411 | - 410 |
| - Repayment of lease liabilities | - 5,543 | - 4,809 |
| = Cash inflow/outflow from financing activities / financing cash flow | - 11,097 | - 8,749 |
| Net cash changes in financial funds | - 4,389 | 7,419 |
| -/+ Effect of changes in currency exchange rate and other effects
from changes of financial funds | 420 | - 132 |
| + Financial funds at the start of the period | 42,931 | 125,469 |
| = Financial funds at the end of the period
[cash and cash-equivalents] | 38,962 | 132,756 |
| = Free cash flow (FCF) – equity approach | 6,708 | 16,168 |
4 Consolidated Statement of Changes in Equity
| in € thousand | Subscribed capital | Capital reserves | Retained earnings | Currency translation | Revaluation from pension plans | Shares in investments accounted for using the equity method | Equity attributable to majority shareholders | Non-controlling Interests | Equity |
|---|---|---|---|---|---|---|---|---|---|
| As per 1/1/2026 | 920 | 40,000 | 58,658 | -6,741 | -4,428 | 51 | 88,460 | 133 | 88,593 |
| Profit or loss | - | - | -914 | - | - | - | -914 | -12 | -926 |
| Other comprehensive income | - | - | - | 461 | 840 | - | 1,301 | 6 | 1,307 |
| Total comprehensive income | - | - | -914 | 461 | 840 | - | 387 | -6 | 381 |
| First-time consolidation | - | - | -90 | - | - | - | -90 | - | -90 |
| As per 3/31/2026 | 920 | 40,000 | 57,654 | -6,280 | -3,588 | 51 | 88,757 | 127 | 88,884 |
| in € thousand | Subscribed capital | Capital reserves | Retained earnings | Currency translation | Revaluation from pension plans | Shares in investments accounted for using the equity method | Equity attributable to majority shareholders | Non-controlling Interests | Equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| As per 1/1/2025 | 920 | 40,000 | 102,256 | -4,942 | -5,382 | 31 | 132,883 | 187 | 133,070 |
| Profit or loss | - | - | -934 | - | - | - | -934 | -42 | -976 |
| Other comprehensive income | - | - | - | -374 | 1,094 | - | 720 | 9 | 729 |
| Total comprehensive income | - | - | -934 | -374 | 1,094 | - | -214 | -33 | -247 |
| As per 3/31/2025 | 920 | 40,000 | 101,322 | -5,316 | -4,288 | 31 | 132,669 | 154 | 132,823 |
REPORT ON THE FIRST QUARTER OF 2026
5 Selected Explanatory Notes
5.1 General Disclosures
The EDAG Group is one of the largest independent engineering service providers and handles projects in the fields of mobility, industry, and public in the Vehicle Engineering, Electrics/Electronics and Production Solutions segments.
The parent company of the EDAG Group is EDAG Engineering Group AG ("EDAG Group AG"). The EDAG Group AG was founded on November 2, 2015, and was entered as a stock corporation in the commercial register of the Swiss canton Thurgau on November 3, 2015. The registered office of the company is: Schlossgasse 2, 9320 Arbon, Switzerland.
Since December 2, 2015, the company has been listed for trading on the regulated market of the Frankfurt Stock Exchange with concurrent admission to the sub-segment of the regulated market with additional post-admission obligations (Prime Standard):
International Securities Identification Number (ISIN): CH0303692047
Securities identification number (WKN): A143NB
Trading symbol: ED4
The shares are denominated in Swiss francs. The functional currency is the euro, and shares are traded in euros. The company's shares are briefed in a global certificate and deposited with Clearstream. Each company share entitles its holder to a vote at the company's annual shareholders' meeting.
The financial statements of the subsidiaries included in the Consolidated Financial Statements were prepared using uniform accounting and valuation principles as of EDAG Group AG's financial reporting date (March 31, 2026).
The unaudited Consolidated Interim Report has been prepared using the euro as the reporting currency. Unless otherwise stated, all amounts are given in thousands of euros. Where percentage values and figures are given, differences may occur due to rounding.
REPORT ON THE FIRST QUARTER OF 2026
In accordance with IAS 1, the statement of financial position is divided into non-current and current assets and liabilities. Assets and liabilities are classified as current if they are expected to be sold or settled within a year or within the company's or group's normal operating cycle. In compliance with IAS 12, deferred taxes are posted as non-current assets and liabilities. Likewise, pension provisions are also posted as non-current items.
The statement of comprehensive income is structured according to the nature of expense method.
5.2 Basic Principles and Methods
Basic Accounting Principles
The Consolidated Interim Report of the EDAG Group AG for the period ending March 31, 2026 has been prepared in accordance with IAS 34 "Interim financial reporting". As the scope of the Consolidated Interim Report has been reduced, making it shorter than the Consolidated Financial Statements, it should be read in conjunction with the Consolidated Financial Statements for December 31, 2025. The Consolidated Financial Statements of EDAG Group AG and its subsidiaries for December 31, 2025 have been prepared in accordance with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB), as they are to be applied pursuant to Directive No. 1606/2002 of the European Parliament and Council regarding the application of international accounting standards in the EU. In addition to the International Financial Reporting Standards, the term IFRS also includes the still valid International Accounting Standards (IAS), the Interpretations of the IFRS Interpretations Committee (IFRS IC) and those of the former Standing Interpretations Committee (SIC). The requirements of all accounting standards and interpretations resolved by the European Commission and adopted in national law as of March 31, 2026 have been fulfilled.
In addition to the Statement of Financial Position and the Statement of Comprehensive Income, the IFRS Consolidated Financial Statements also include additional components, namely the Statement of Changes in Equity, the Cash Flow Statement and the notes. The separate report on the risks of future development is included in the Interim Group Management Report.
REPORT ON THE FIRST QUARTER OF 2026
All estimates and assessments required for accounting and valuation in accordance with the IFRS standards are in conformity with the respective standards, are regularly reassessed, and are based on past experience and other factors including expectations as to future events that appear reasonable under the given circumstances. Wherever large-scale estimates were necessary, the assumptions made are set out in the note relating to the relevant item in the following.
The risks to the EDAG Group arising from the global crises are subject to continual analysis and evaluation, also with regard to their impact on the net assets, financial position and financial performance of the Group. Climate-related opportunities and risks are regularly assessed in our Group Sustainability Report, and are also taken into due account within the scope of our financial reporting, including forecasts of expected business development. At the present time, we do not anticipate any material changes to our expectations with regard to the net assets, financial position and financial performance as a result of the climate crisis.
The Abridged Consolidated Financial Statements and the Interim Group Management Report have not been subjected to an audit review in accordance with ISRE 2410, nor have they been audited in accordance with § 317 of the German Commercial Code.
New, Changed or Revised Accounting Standards
EDAG Group AG has applied the following accounting standards adopted by the EU and legally required to be applied since January 1, 2026, although they did not have any significant effect on the assets, financial position and financial performance of the EDAG Group in the Consolidated Interim Report:
- IFRS 9, IFRS 7 – Classification and measurement of financial instruments (IASB publication: May 30, 2024; EU endorsement: May 27, 2025)
- IFRS 9, IFRS 7 – Contracts for nature-dependent electricity supply (IASB publication: December 18, 2024; EU endorsement: June 30, 2025)
- Annual improvements to IFRS accounting standards – Volume 11 (IASB publication: July 18, 2024; EU endorsement: July 09, 2025)
REPORT ON THE FIRST QUARTER OF 2026
Accounting and Valuation Principles
For this consolidated Interim Report, a discount rate of 4.29 percent has been used for pension provisions in Germany (12/31/2025: 3.90 percent). A discount rate of 1.21 percent has been used for pension provisions in Switzerland (12/31/2025: 1.05 percent).
In accordance with the general objectives of financial statements as set out in F.12 et seq., IAS 1.9 and IAS 8.10 et seq., IAS 34.30(c) was applied when determining income tax expense for the interim reporting period. Accordingly, the weighted average expected annual tax rate in the amount of 33.33 percent (12/31/2025: 21.17 percent effective reported tax ratio) was used.
Otherwise, the same accounting and valuation methods and consolidation principles as were used in the 2025 Consolidated Financial Statements for EDAG Group AG were applied when preparing the Consolidated Interim Report and determining comparative figures. A detailed description of these methods has been published in the Notes to the Consolidated Financial Statements in the Annual Report for 2025. This Consolidated Interim Report should therefore be read in conjunction with the Consolidated Financial Statements of EDAG Group AG for December 31, 2025.
Irregular expenses incurred during the financial year are reported in cases where reporting would also be effected at the end of the financial year.
The EDAG Group's operating activities are not subject to any significant seasonal influences.
Estimates and Discretionary Decisions
Preparation of the Consolidated Interim Report in accordance with IFRS requires management to make estimates and discretionary decisions that may affect the recognition and measurement of assets and liabilities in the balance sheet, the disclosure of contingent receivables and liabilities on the balance sheet date, and the reported income and expenses for the reporting period.
REPORT ON THE FIRST QUARTER OF 2026
Due to the continuing geopolitical conflicts, these estimates and discretionary decisions are subject to increased uncertainty. The amounts actually realized may deviate from these estimates and discretionary decisions; changes may have a material impact on the Consolidated Interim Report.
5.3 Changes in the Scope of Consolidation
Compared to December 31, 2025, amendments relating to companies not included in the scope of consolidation were made to the group of combined or consolidated companies in the first quarter of the 2026 financial year; as of March 31, 2026, it is composed as follows:
| Switzerland | Germany | Other countries | Total | |
|---|---|---|---|---|
| Fully consolidated companies | 2 | 6 | 20 | 28 |
| Companies accounted for using the equity method | - | 1 | - | 1 |
| Companies included at acquisition cost [not included in the scope of consolidation] | - | 3 | - | 3 |
The companies included at acquisition cost are for the most part non-operational companies and general partners, and are not included in the scope of consolidation. The company included and accounted for using the equity method is an associated company.
HYKONIS GmbH, Stuhr was founded and registered on April 3, 2025. EDAG Engineering GmbH holds 100 percent of the shares. The company was included at acquisition cost in the 2025 calendar year and has been fully consolidated since January 1, 2026.
REPORT ON THE FIRST QUARTER OF 2026
5.4 Currency translation
Currency translation in the Consolidated Interim Report was based on the following exchange rates:
| Country | Currency | 3/31/2026 | 1Q 2026 | 12/31/2025 | 1Q 2025 |
|---|---|---|---|---|---|
| 1 EUR = nat. currency | Spot rate on balance sheet date | Average exchange rate for period | Spot rate on balance sheet date | Average exchange rate for period | |
| Great Britain | GBP | 0.8683 | 0.8683 | 0.8726 | 0.8356 |
| Brazil | BRL | 6.0065 | 6.1567 | 6.4364 | 6.1610 |
| USA | USD | 1.1498 | 1.1707 | 1.1750 | 1.0524 |
| Malaysia | MYR | 4.6555 | 4.6403 | 4.7682 | 4.6807 |
| Hungary | HUF | 384.8800 | 383.9902 | 385.1500 | 404.8864 |
| India | INR | 107.8788 | 107.1158 | 105.5965 | 91.1583 |
| China | CNY | 7.9341 | 8.1064 | 8.2262 | 7.6554 |
| Mexico | MXN | 20.7101 | 20.5459 | 21.1180 | 21.4993 |
| Czech Republic | CZK | 24.5140 | 24.3251 | 24.2370 | 25.0804 |
| Switzerland | CHF | 0.9194 | 0.9169 | 0.9314 | 0.9458 |
| Poland | PLN | 4.2890 | 4.2342 | 4.2210 | 4.2003 |
| Sweden | SEK | 10.9430 | 10.6927 | 10.8215 | 11.2315 |
| Japan | JPY | 183.3900 | 183.5964 | 184.0900 | 160.3917 |
| Turkey | TRY | 51.1433 | 51.1433 | 50.4838 | 41.0399 |
Hyperinflation
Since the second quarter of 2022, Turkey has been classified as a hyperinflationary economy in accordance with IAS 29 "Financial Reporting in Hyperinflationary Economies". Accounting for the activities there is therefore not carried out on the basis of historical acquisition or production costs, but is presented adjusted for the effects of inflation. The IMF (International Monetary Fund) price index for consumer goods is used here (inflation in Turkey in 2026: 21.0 percent; 2025: 31.0 percent). Gains and losses from hyperinflation are included in equity, in the reserves from currency translation differences.
REPORT ON THE FIRST QUARTER OF 2026
After the figures have been adjusted for the effects of inflation, balance sheet items and income and expenses are translated into the reporting currency, the euro, at the closing rate on the balance sheet date, in accordance with IAS 21.42. This did not result in any material effect. The previous year's figures are not adjusted in accordance with the requirements of IAS 21 "The Effects of Changes in Foreign Exchange Rates" for financial statements in non-hyperinflationary reporting currencies.
5.5 Reconciliation of the Adjusted Operating Profit (Adjusted EBIT)
In addition to the data required according to the IFRS, the segment reporting also includes a reconciliation to the adjusted earnings before interest and taxes (adjusted EBIT). Adjustments include income from initial consolidations and deconsolidations, expenses and earnings relating to restructuring, all effects of purchase price allocations on EBIT and special effects from compensation payments.
| in € thousand | 1/1/2026 | 1/1/2025 |
|---|---|---|
| - 3/31/2026 | - 3/31/2025 | |
| Earnings before interest and taxes (EBIT) | 1,885 | 1,638 |
| Adjustments: | ||
| Expenses (+) from purchase price allocation | 12 | 12 |
| Other adjustments | - | - 40 |
| Total adjustments | 12 | - 28 |
| Adjusted earnings before interest and taxes (adjusted EBIT) | 1,897 | 1,610 |
REPORT ON THE FIRST QUARTER OF 2026
46 | REPORT ON THE FIRST QUARTER OF 2026
5.6 Segment Reporting
The segment reporting is prepared in accordance with IFRS 8 "Operating segments". Individual consolidated results are reported by company divisions in conformity with the internal reporting and organizational structure of the EDAG Group. The key performance indicator for the Group Executive Management at segment level is the EBIT/adjusted EBIT. The segment presentation is designed to show the profitability and the assets and financial situation of the individual business activities. Intercompany sales are accounted for at customary market prices and are equivalent to sales towards third parties (arm's length principle).
As at March 31, 2026, the non-current assets amounted to €337.2 million (12/31/2025: €340.7 million). Of these, €2.7 million are domestic, €290.7 million are German, and €43.8 million are non-domestic (12/31/2025: [domestic: €2.6 million; Germany: €294.2 million; non-domestic: €43.9 million]).
The assets, liabilities and provisions are not reported by segments, as this information is not part of the internal reporting.
Further information regarding the range of services offered by the "Vehicle Engineering" (VE), "Electrics/Electronics" (E/E), and "Production Solutions" (PS) segments can be found in the "Business Model" section of the Interim Group Management Report.
Income and expenses as well as results between the segments are eliminated in the consolidation.
| in € thousand | 1/1/2026 – 3/31/2026 | |||||
|---|---|---|---|---|---|---|
| Vehicle Engineering | Electrics/ Electronics | Production Solutions | Total segments | Consolidation | Total Group | |
| Sales revenue with third parties | 101,393 | 48,817 | 21,762 | 171,972 | - | 171,972 |
| Sales revenues with other segments | 1,423 | 982 | 648 | 3,053 | - 3,053 | - |
| Changes in inventories | - 254 | - 30 | 124 | - 160 | - | - 160 |
| Total revenues¹ | 102,562 | 49,769 | 22,534 | 174,865 | - 3,053 | 171,812 |
| EBIT | 2,492 | 943 | - 1,550 | 1,885 | - | 1,885 |
| EBIT margin [%] | 2.4% | 1.9% | -6.9% | 1.1% | n/a | 1.1% |
| Purchase price allocation (PPA) | 12 | - | - | 12 | - | 12 |
| Adjusted EBIT | 2,504 | 943 | - 1,550 | 1,897 | - | 1,897 |
| Adjusted EBIT margin [%] | 2.4% | 1.9% | -6.9% | 1.1% | n/a | 1.1% |
| Depreciation, amortization and impairment | - 8,606 | - 478 | - 397 | - 9,481 | - | - 9,481 |
| Ø Employees per segment | 4,532 | 2,427 | 1,082 | 8,041 | - | 8,041 |
in € thousand
1/1/2025 – 3/31/2025
| Vehicle Engineering | Electrics/ Electronics | Production Solutions | Total segments | Consolidation | Total Group | |
|---|---|---|---|---|---|---|
| Sales revenue with third parties | 106,220 | 56,491 | 29,111 | 191,822 | - | 191,822 |
| Sales revenues with other segments | 2,023 | 1,374 | 918 | 4,315 | - 4,315 | - |
| Changes in inventories | 374 | 87 | 275 | 736 | - | 736 |
| Total revenues¹ | 108,617 | 57,952 | 30,304 | 196,873 | - 4,315 | 192,558 |
| EBIT | 727 | 655 | 256 | 1,638 | - | 1,638 |
| EBIT margin [%] | 0.7% | 1.1% | 0.8% | 0.8% | n/a | 0.9% |
| Purchase price allocation (PPA) | 12 | - | - | 12 | - | 12 |
| Other adjustments | 22 | - 62 | - | - 40 | - | - 40 |
| Adjusted EBIT | 761 | 593 | 256 | 1,610 | - | 1,610 |
| Adjusted EBIT margin [%] | 0.7% | 1.0% | 0.8% | 0.8% | n/a | 0.8% |
| Depreciation, amortization and impairment | - 9,329 | - 444 | - 423 | - 10,196 | - | - 10,196 |
| Ø Employees per segment | 4,948 | 2,729 | 1,316 | 8,993 | - | 8,993 |
¹ The performance figure "revenues" is used in the sense of gross performance (sales revenues and changes in inventories).
REPORT ON THE FIRST QUARTER OF 2026
The following table reflects the concentration risk of the EDAG Group, divided according to the customer sales divisions and segments:
| in € thousand | 1/1/2026 – 3/31/2026 | |||||||
|---|---|---|---|---|---|---|---|---|
| Vehicle Engineering | Electrics/Electronics | Production Solutions | Total | |||||
| Customer sales division A | 14,228 | 14% | 17,200 | 35% | 614 | 3% | 32,042 | 18% |
| Customer sales division B | 8,839 | 9% | 7,947 | 16% | 786 | 3% | 17,572 | 10% |
| Customer sales division C | 9,858 | 10% | 4,688 | 10% | 2,135 | 10% | 16,681 | 10% |
| Customer sales division D | 18,478 | 18% | 1,228 | 3% | 2,472 | 11% | 22,178 | 13% |
| Customer sales division E | 8,760 | 9% | 1,038 | 2% | 371 | 2% | 10,169 | 6% |
| Customer sales division F | 3,286 | 3% | 31 | 0% | 134 | 1% | 3,451 | 2% |
| Customer sales division G | 16,698 | 16% | 2,562 | 5% | 4,350 | 20% | 23,610 | 14% |
| Customer sales division H | 13,090 | 13% | 5,620 | 12% | 2,140 | 10% | 20,850 | 12% |
| Customer sales division I | 8,156 | 8% | 8,503 | 17% | 8,760 | 40% | 25,419 | 15% |
| Sales revenue with third parties | 101,393 | 100% | 48,817 | 100% | 21,762 | 100% | 171,972 | 100% |
in € thousand
1/1/2025 – 3/31/2025
| Vehicle Engineering | Electrics/Electronics | Production Solutions | Total | |||||
|---|---|---|---|---|---|---|---|---|
| Customer sales division A | 15,587 | 15% | 18,038 | 32% | 1,308 | 4% | 34,933 | 18% |
| Customer sales division B | 11,479 | 11% | 15,853 | 28% | 886 | 3% | 28,218 | 15% |
| Customer sales division C | 11,541 | 11% | 5,705 | 10% | 3,222 | 11% | 20,468 | 11% |
| Customer sales division D | 12,885 | 12% | 971 | 2% | 2,703 | 9% | 16,559 | 9% |
| Customer sales division E | 7,341 | 7% | 1,099 | 2% | 396 | 1% | 8,836 | 5% |
| Customer sales division F | 15,847 | 15% | 81 | 0% | 480 | 2% | 16,408 | 9% |
| Customer sales division G | 17,274 | 16% | 4,927 | 9% | 4,157 | 14% | 26,358 | 14% |
| Customer sales division H | 11,100 | 10% | 4,951 | 9% | 4,152 | 14% | 20,203 | 11% |
| Customer sales division I | 3,166 | 3% | 4,866 | 9% | 11,807 | 41% | 19,839 | 10% |
| Sales revenue with third parties | 106,220 | 100% | 56,491 | 100% | 29,111 | 100% | 191,822 | 100% |
In the Electrics/Electronics segment, the EDAG Group generates over 50 percent of its sales revenues with one corporate group.
REPORT ON THE FIRST QUARTER OF 2026
The following table reflects the revenue recognition of the EDAG Group, divided according to segments:
| in € thousand | 1/1/2026 – 3/31/2026 | |||||
|---|---|---|---|---|---|---|
| Vehicle Engineering | Electrics/ Electronics | Production Solutions | Total segments | Consolidation | Total Group | |
| Period-related revenue recognition | 96,891 | 49,734 | 21,526 | 168,151 | - | 168,151 |
| Point in time revenue recognition | 5,925 | 65 | 884 | 6,874 | - | 6,874 |
| Sales revenues with other segments | - 1,423 | - 982 | - 648 | - 3,053 | - | - 3,053 |
| Sales revenue with third parties | 101,393 | 48,817 | 21,762 | 171,972 | - | 171,972 |
| Sales revenues with other segments | 1,423 | 982 | 648 | 3,053 | - 3,053 | - |
| Changes in inventories | - 254 | - 30 | 124 | - 160 | - | - 160 |
| Total revenues | 102,562 | 49,769 | 22,534 | 174,865 | - 3,053 | 171,812 |
in € thousand
| Vehicle Engineering | Electrics/ Electronics | Production Solutions | Total segments | Consolidation | Total Group | |
|---|---|---|---|---|---|---|
| Period-related revenue recognition | 103,995 | 57,818 | 29,346 | 191,159 | - | 191,159 |
| Point in time revenue recognition | 4,248 | 47 | 683 | 4,978 | - | 4,978 |
| Sales revenues with other segments | - 2,023 | - 1,374 | - 918 | - 4,315 | - | - 4,315 |
| Sales revenue with third parties | 106,220 | 56,491 | 29,111 | 191,822 | - | 191,822 |
| Sales revenues with other segments | 2,023 | 1,374 | 918 | 4,315 | - 4,315 | - |
| Changes in inventories | 374 | 87 | 275 | 736 | - | 736 |
| Total revenues | 108,617 | 57,952 | 30,304 | 196,873 | - 4,315 | 192,558 |
REPORT ON THE FIRST QUARTER OF 2026
50 | REPORT ON THE FIRST QUARTER OF 2026
5.7 Contingent Liabilities/Receivables and Other Financial Obligations
Contingent Liabilities
As at the end of the 2025 financial year, there were no material contingent liabilities on the reporting date.
Other Financial Obligations
In addition to the provisions and liabilities, there are also other financial obligations, and these are composed as follows:
| in € thousand | 3/31/2026 | 12/31/2025 |
|---|---|---|
| Open purchase orders | 3,793 | 3,994 |
| Total renting and leasing contracts | 4,869 | 5,324 |
| Other miscellaneous financial obligations | 130 | 6 |
| Total | 8,792 | 9,324 |
The obligations from rental and leasing contracts are composed primarily of leasing agreements for low-value assets in the form of IT equipment, of short-term rental agreements and software leasing.
Contingent Receivables
As at the end of the 2025 financial year, there were no material contingent receivables on the reporting date.
REPORT ON THE FIRST QUARTER OF 2026 | 51
5.8 Financial Instruments
Net Financial Debt/Credit
The Group Executive Management's aim is to keep the net financial debt as low as possible in relation to equity (net gearing).
| in € thousand | 3/31/2026 | 12/31/2025 |
|---|---|---|
| Non-current financial liabilities | - 64,463 | - 65,144 |
| Current financial liabilities | - 53,948 | - 55,875 |
| Current securities, loans and financial instruments | 28 | 48 |
| Cash and cash equivalents | 38,962 | 42,931 |
| Net financial debt/credit [-/+] | - 79,421 | - 78,020 |
| Equity | 88,884 | 88,593 |
| Net gearing [%] | 89.4% | 88.1% |
At €79,421 thousand, the net financial debt on March 31, 2026, is €1,401 thousand above the value of €78,020 thousand as of December 31, 2025.
As of March 31, 2026, there are still two promissory note loans composed of several tranches with various interest rates. As of the reporting date, the terms to maturity range from 3.5 months to 4.25 years.
As of March 31, 2026, there is a medium-term loan, including interest, in the amount of €14,463 thousand from VKE-Versorgungskasse EDAG-Firmengruppe e.V., the other major creditor (12/31/2025: €15,144 thousand).
The EDAG Group has unused lines of credit in the amount of €106.4 million on the reporting date (12/31/2025: €103.6 million).
One of the major factors influencing the net financial debt is the working capital, which developed as follows:
| in € thousand | 3/31/2026 | 12/31/2025 | |
|---|---|---|---|
| Inventories | 4,077 | 5,217 | |
| + | Current contract assets | 96,199 | 61,503 |
| + | Current accounts receivable | 60,852 | 106,942 |
| - | Current contract liabilities | - 62,267 | - 63,754 |
| - | Current accounts payable | - 26,572 | - 26,723 |
| = | Trade working capital (TWC) | 72,289 | 83,185 |
| + | Non-current other financial assets | 542 | 548 |
| + | Non-current other non-financial assets | 1,214 | 1,112 |
| + | Deferred tax assets | 36,842 | 36,167 |
| + | Other current financial assets excl. interest-bearing receivables | 2,558 | 2,540 |
| + | Current other non-financial assets | 24,802 | 23,437 |
| + | Income tax assets | 3,318 | 3,892 |
| - | Non-current other financial liabilities | - 110 | - 110 |
| - | Non-current other non-financial liabilities | - 21 | - 27 |
| - | Deferred tax liabilities | - 71 | - 9 |
| - | Current other financial liabilities | - 3,752 | - 3,633 |
| - | Current other non-financial liabilities | - 52,735 | - 50,603 |
| - | Income tax liabilities | - 788 | - 2,340 |
| = | Other working capital (OWC) | 11,799 | 10,974 |
| Net working capital (NWC) | 84,088 | 94,159 |
Compared to December 31, 2025, the trade working capital decreased by €10,896 thousand to €72,289 thousand. The decrease is due mainly to the reduction in accounts receivable. The opposite effect was had on trade working capital by the increase in capital commitment in contract assets.
As can be seen from the table above, the other working capital increased by €825 thousand to €11,799 thousand, compared to December 31, 2025.
REPORT ON THE FIRST QUARTER OF 2026
Carrying Amounts, Valuation Rates and Fair Values of the Financial Instruments as per Measurement Category
The principles and methods for assessing at fair value have not changed compared to the previous year. Detailed explanations of the valuation principles and methods can be found in the Notes to the Consolidated Financial Statement in the Annual Report of EDAG Group AG for 2025.
For the most part, cash and cash equivalents, accounts receivable and other receivables have only a short time to maturity. For this reason, their carrying amounts on the reporting date are close approximations of the fair values.
The fair values of other receivables with a remaining term of more than a year correspond to the net present values of the payments associated with the assets, taking into account the relevant interest parameters, which reflect the market and counterparty-related changes in conditions and expectations.
The investments and securities are measured at fair value. In the case of equity interests for which no market price is available, the acquisition costs are applied as a reasonable estimate of the fair value. In the financial assets, shares in non-consolidated subsidiaries and other investments are recognized at acquisition cost, taking impairments into account, as no observable fair values are available and other admissible methods of evaluation do not produce reliable results. There are currently no plans to sell these financial instruments.
Accounts payable and other financial liabilities regularly have short terms to maturity, and the values posted are close approximations of the fair values.
REPORT ON THE FIRST QUARTER OF 2026
The carrying amounts or fair values of all financial instruments recorded in the abridged Consolidated Financial Statements are shown in the following table:
| in € thousand | Measured at fair value through profit and loss [FVtPL] | Measured at amortized cost [AC] | Not allocated to a measurement category [n.a.] | Balance sheet items as per 3/31/2026 | |
|---|---|---|---|---|---|
| Carrying amount | Fair value | ||||
| Financial assets (assets) | |||||
| Financial assets¹ | 79 | 79 | 79 | - | 158 |
| Non-current other financial assets | - | 542 | 542 | - | 542 |
| Current contract assets | - | - | - | 96,199 | 96,199 |
| Current accounts receivable | - | 60,852 | 60,852 | - | 60,852 |
| Current other financial assets | - | 2,558 | 2,558 | - | 2,558 |
| Current securities, loans and financial instruments | 28 | - | - | - | 28 |
| Cash and cash equivalents | - | 38,962 | 38,962 | - | 38,962 |
| Financial assets (assets) | 107 | 102,993 | 102,993 | 96,199 | 199,299 |
| Financial liabilities (liabilities) | |||||
| Non-current financial liabilities | - | 64,463 | 65,562 | - | 64,463 |
| Non-current lease liabilities | - | - | - | 112,677 | 112,677 |
| Non-current other financial liabilities | 110 | - | - | - | 110 |
| Current financial liabilities | 20 | 53,928 | 53,928 | - | 53,948 |
| Current lease liabilities | - | - | - | 22,813 | 22,813 |
| Current contract liabilities | - | - | - | 62,267 | 62,267 |
| Current accounts payable | - | 26,572 | 26,572 | - | 26,572 |
| Current other financial liabilities | 150 | 3,602 | 3,602 | - | 3,752 |
| Financial liabilities (liabilities) | 280 | 148,565 | 149,664 | 197,757 | 346,602 |
¹ For financial assets classified as at fair value through profit or loss [FVtPL], use is made of the exemption in accordance with IFRS 9.85.2.3 for shares in non-consolidated subsidiaries.
REPORT ON THE FIRST QUARTER OF 2026
REPORT ON THE FIRST QUARTER OF 2026 | 55
| in € thousand | Measured at fair value through profit and loss [FVtPL] | Measured at amortized cost [AC] | Not allocated to a measurement category [n.a.] | Balance sheet items as per 12/31/2025 | |
|---|---|---|---|---|---|
| Carrying amount | Fair value | ||||
| Financial assets (assets) | |||||
| Financial assets^{1} | 105 | 81 | 81 | - | 186 |
| Non-current other financial assets | - | 548 | 548 | - | 548 |
| Current contract assets | - | - | - | 61,503 | 61,503 |
| Current accounts receivable | - | 106,942 | 106,942 | - | 106,942 |
| Current other financial assets | - | 2,540 | 2,540 | - | 2,540 |
| Current securities, loans and financial instruments | 28 | 20 | 20 | - | 48 |
| Cash and cash equivalents | - | 42,931 | 42,931 | - | 42,931 |
| Financial assets (assets) | 133 | 153,062 | 153,062 | 61,503 | 214,698 |
| Financial liabilities (liabilities) | |||||
| Non-current financial liabilities | - | 65,144 | 66,558 | - | 65,144 |
| Non-current lease liabilities | - | - | - | 115,725 | 115,725 |
| Non-current other financial liabilities | 110 | - | - | - | 110 |
| Current financial liabilities | 2 | 55,873 | 55,873 | - | 55,875 |
| Current lease liabilities | - | - | - | 22,524 | 22,524 |
| Current contract liabilities | - | - | - | 63,754 | 63,754 |
| Current accounts payable | - | 26,723 | 26,723 | - | 26,723 |
| Current other financial liabilities | 128 | 3,505 | 3,505 | - | 3,633 |
| Financial liabilities (liabilities) | 240 | 151,245 | 152,659 | 202,003 | 353,488 |
The fair values of securities correspond to the nominal value multiplied by the exchange quotation on the reporting date.
The attributable fair values of liabilities due to credit institutions, loans and other financial liabilities are calculated as present values of the debt-related payments, based on EDAG's current yield curve. The fair value was measured in accordance with the "Level 2" measurement category on the basis of a discounted cash flow model. In this context, the current market rates of interest and the contractually agreed parameters were taken as the basis.
The information for the determination of attributable fair value is given in tabular form, based on a three-level fair value hierarchy for each class of financial instrument. There are three measurement categories:
Level 1: At level 1 of the fair value hierarchy, the attributable fair values are measured using listed market prices, as the best possible fair values for financial assets or liabilities can be observed in active markets.
Level 2: If there is no active market for a financial instrument, a company uses valuation models to determine the attributable fair value. Valuation models include the use of current business transactions between competent, independent business partners willing to enter into a contract; comparison with the current attributable fair value of another, essentially identical financial instrument; use of the discounted cash flow method; or of option pricing models. The attributable fair value is estimated on the basis of the results achieved using one of the valuation methods, making the greatest possible use of market data and relying as little as possible on company-specific data.
Level 3: The valuation models used at this level are not based on observable market data.
56 | REPORT ON THE FIRST QUARTER OF 2026
| in € thousand | Assessed at fair value
3/31/2026 | | | |
| --- | --- | --- | --- | --- |
| | Level 1 | Level 2 | Level 3 | Total |
| Financial assets (assets) | | | | |
| Financial receivables | 28 | - | - | 28 |
| Financial Assets (Liabilities) | | | | |
| Other financial liabilities | - | 20 | 260 | 280 |
in € thousand
| | Assessed at fair value
12/31/2025 | | | |
| --- | --- | --- | --- | --- |
| | Level 1 | Level 2 | Level 3 | Total |
| Financial assets (assets) | | | | |
| Financial receivables | 28 | - | - | 28 |
| Financial Assets (Liabilities) | | | | |
| Other financial liabilities | - | 2 | 238 | 240 |
5.9 Related Parties
In the course of its regular business activities, the EDAG Group correlates either directly or indirectly not only with the subsidiaries included in the Abridged Consolidated Financial Statements, but also with EDAG subsidiaries which are affiliated but not consolidated, with affiliated companies of the ATON Group, and with other related companies and persons.
For a more detailed account of the type and extent of the business relations, please see the Notes to the Consolidated Financial Statements in the Annual Report of EDAG Group AG for 2025.
REPORT ON THE FIRST QUARTER OF 2026
The following table gives an overview of ongoing business transactions with related parties:
| in € thousand | 1/1/2026 - 3/31/2026 | 1/1/2025 - 3/31/2025 |
|---|---|---|
| EDAG Group with Board of Directors1(EDAG Group AG) | ||
| Work-related expenses | 240 | 241 |
| Travel and other expenses | 8 | 7 |
| Consulting expenses | 2 | 1 |
| EDAG Group with supervisory boards1(EDAG Engineering GmbH & EDAG Engineering Holding GmbH) | ||
| Work-related expenses | 28 | 27 |
| Travel and other expenses | 2 | 2 |
| Compensation costs | 214 | 208 |
| EDAG Group with ATON companies(parent company and its affiliated companies) | ||
| Goods and services rendered | 101 | 107 |
| Goods and services received | 10 | 29 |
| EDAG Group with unconsolidated subsidiaries | ||
| Other expenses | 2 | 2 |
| EDAG Group with associated companies | ||
| Goods and services rendered | 10 | 12 |
| Goods and services received | 9 | 1 |
| Other income | - | 1 |
| Other expenses | 16 | 16 |
| Income from investments/using the equity method | - 261 | 343 |
| EDAG Group with other related companies and persons | ||
| Interest expense | 129 | 117 |
| Rental and lease payments from rights of use | 2,158 | 2,072 |
1 Overall, these are all payments due at short notice.
REPORT ON THE FIRST QUARTER OF 2026
REPORT ON THE FIRST QUARTER OF 2026 | 59
5.10 Subsequent Events
No important events took place after the reporting period.
Arbon, May 6, 2026
EDAG Engineering Group AG
G. Denoke
Georg Denoke, President of the Board of Directors
Sylvia Schorr, Member of the Board of Directors
and Chair of the Examination Board
Harald Keller, Member of the Group Executive Management (CEO)
Holger Merz, Member of the Group Executive Management (CFO)
60 | REPORT ON THE FIRST QUARTER OF 2026
LEGAL NOTICE
Issued by:
EDAG Engineering Group AG
Schlossgasse 2
9320 Arbon/Switzerland
www.edag.com/en
The English version of the Interim Report is a translation of the German version. The German version is legally binding.
Legal Notice
The Consolidated Interim Report includes statements about future developments. Like any form of entrepreneurial activity in a global environment, these statements are always associated with a degree of uncertainty. Our descriptions are based on the convictions and assumptions of the management, which in turn are based on currently available information. The following factors may, however, affect the success of our strategic and operative measures: geopolitical risks, changes in general economic conditions, in particular a prolonged economic recession, changes to exchange rates and interest rates, the launch of products by competitors, including increasing competitive pressure. Should any of these factors or other uncertainties materialize, or the assumptions on which the statements are based prove to be inaccurate, the actual results may differ from the forecast results. EDAG does not intend to continuously update predictive statements and information items, as they relate to the circumstances that existed on the date of their publication.
REPORT ON THE FIRST QUARTER OF 2026 | 61
EDAG ENGINEERING GROUP AG
SCHLOSSGASSE 2
9320 ARBON
SWITZERLAND
EDAG.COM