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Eurotech Earnings Release 2025
4469_rns_2025-11-13_09316deb-f85b-4144-b634-08b31626745b.pdf
Earnings Release
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EUROTECH: CONSOLIDATED INTERIM MANAGEMENT REPORT AS AT 30 SEPTEMBER 2025 APPROVED BY THE BOD
The third quarter of 2025 shows a substantial reversal of the trend: EBITDA at break-even and adjusted EBITDA positive. The nine months confirm a 24.7% increase in orders collected compared to the same period in 2024. Cost management activities have enabled operating costs to be reduced by 18.1%, net of non-recurring costs. Net financial position under control and in line with expectations.
Amaro (Italy), 13 November 2025
- Consolidated revenues of € 35.2 million (€ 43.0 million as at 30.09.2024, -18.2% at historic exchange rates and -17.7% at constant exchange rates)
- Consolidated gross profit of € 17.4 million and 49.3% of revenues (€ 22.3 million and 51.8% of revenues as at 30.09.2024)
- Consolidated EBITDA of € -5.3 million (€ -4.3 million as at 30.09.2024)
- Consolidated EBITDA adjusted of € -3.8 million (€ -3.3 million as at 30.09.2024)
- Consolidated EBIT of € -8.9 million (€ -7.7 million as at 30.09.2024)
- Group net income of € -8.9 million (€ -7.9 million as at 30.09.2024)
- Net debt of € 19.4 million (€ 20.4 million as at 31.12.2024)
The Board of Directors of Eurotech S.p.A. today examined and approved the results of first nine months of 2025.
Trend of the period
In the third quarter, revenues grew compared to the first and second quarters, and EBITDA was substantially at break-even: a significant improvement compared to the third quarter of 2024, with revenues remaining unchanged, achieved thanks to the operating cost reduction project.
The overall result for the nine months was strongly influenced by the performance in the first half of the year. Both the US and European geographical areas saw a reduction in revenues compared to the first nine months of 2024, while the Japanese area held steady.
The gross margin for the period was in line with both the first six months and the first three months of 2025, with performance supported by both the mix of products/services and the
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control of component costs. The result for the first nine months of 2024 was affected by a highmargin sale in the third quarter and should therefore not be considered a benchmark.
Operating costs were down 15.5% compared to the first nine months of 2024, or 18.1% net of non-recurring costs. This improvement was achieved through a reduction in the number of employees and with the use of tools such as solidarity contracts in Italy and Germany. The project of cost reduction made it possible to lower the break-even point by about €5 million, thereby limiting the impact of the lower turnover on EBITDA.
Economic performance of the Eurotech Group
Consolidated revenues for the nine months of 2025 amounted to €35.18 million, compared to €42.99 million in the same period of 2024. The decrease in turnover from period to period was 18.2%, an improvement compared to the 26.6% decrease recorded in the first half of the year. At constant exchange rates, the reduction was 17.7%.
The gross margin for the period was €17.35 million, representing 49.3% of turnover, in line with the first half of the year but down from 51.8% in the first nine months of 2024. Last year the mix of products/services sold in the third quarter had increased the margin for the period as previously highlighted.
Operating costs in the first nine months of 2025, gross of adjustments made for internal increases in development activities and net of non-recurring costs, amounted to €23.33 million, down 18.1% from €28.50 million in the first nine months of 2024.
Including non-recurring costs of €1.59 million (€0.99 million in the first nine months of 2024), total operating costs for the first nine months amounted to €24.92 million, down 15.5% compared to €29.49 million in the first nine months of 2024. Non-recurring costs for the period relate in particular to three aspects: one-off personnel costs associated with the reduction in the workforce, certain service costs related to this reorganization, and the severance payment granted to the Chief Executive Officer upon his departure in June 2025.
Adjusted EBITDA, i.e., net of non-recurring costs, amounted to €-3.75 million in the first nine months, compared to €-3.26 million in 2024.
Including non-recurring costs, EBITDA for the first nine months of 2025 amounted to €-5.34 million, compared to €-4.25 million for the first nine months of 2024.
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EBIT, or operating profit for the period, amounted to €-8.91 million, compared to €-7.68 million in the first nine months of 2024.
In terms of the Group's net profit, the figure for the nine months was €-8.92 million, compared to €-7.90 million in the same period of 2024.
Balance sheet and financial situation of the Eurotech Group
As of September 30, 2025, the Group had net financial debt of €19.40 million, compared with net debt of €20.40 million as of December 31, 2024. The lower debt is the combined effect of the benefit of capital contributions of €6 million made by the relative majority shareholder Emera S.r.l., the use of resources for operational management and the investments made.
Net working capital amounted to €10.42 million at September 30, 2025, compared to €14.68 million at December 31, 2024. The reduction in working capital is mainly linked to the dynamics of collections and payments, while the trend in inventories had a limited impact. Net working capital as a percentage of pro-forma turnover for the last 12 rolling months stood at 20.3%.
The Group's shareholders' equity amounted to €54.5 million (€60.7 million at December 31, 2024).
Foreseeable evolution of operations
The growth of the order book confirms that turnover in the second half of the year will be significantly higher than in the first half of 2025 and also higher than in the second half of 2024. This will enable a further improvement in EBITDA compared to that already reported in the third quarter.
The initiatives to streamline and redesign the operating structure will continue in the fourth quarter, with a particular focus on opportunities for operational integration between Group companies.
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***
The Manager in charge of drawing up the corporate accounting documents, Sandro Barazza, hereby certifies, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the documented results, books and accounting records of the company.
***
Eurotech
Eurotech (ETH:IM) is a multinational company that designs, develops and delivers Edge Computers and Internet of Things (IoT) solutions complete with services, software and hardware to system integrators and enterprises. By adopting Eurotech's solutions, customers have access to components and software platforms for IoT, Edge Gateways to enable asset monitoring, and high-performance Edge Computer for applications including Artificial Intelligence (Edge AI). To offer more and more complete solutions Eurotech has activated partnerships with leading companies in their field of action, thus creating a global ecosystem that allows it to create "best in class" solutions for the Industrial Internet of Things. More information: www.eurotech.com
Contacts
Investor Relations
Andrea Barbaro
+39 0433 485411
Corporate Communication
Federica Maion
Tel. +39 0433 485411
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ANNEXES - ACCOUNTING SCHEDULES
CONSOLIDATED PROFIT AND LOSS ACCOUNT
| (€ '000) | Notes | 9M 2025 (b) | nonrecurrent | relatedparties | % | 9M 2024 (a) | nonrecurrent | relatedparties | % | amount | % |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales revenue | С | 35,180 | - | 100.0% | 42,995 | 3 | 100.0% | (7,815) | -18.2% | ||
| Cost of material | D | (17,829) | -50.7% | (20,724) | -48.2% | (2,895) | -14.0% | ||||
| Gross profit | 17,351 | 49.3% | 22,271 | 51.8% | (4,920) | -22.1% | |||||
| Services costs | E | (8,046) | (607) | (187) | -22.9% | (10,037) | (548) | (576) | -23.3% | (1,991) | -19.8% |
| Lease & hire costs | (518) | -1.5% | (684) | -1.6% | (166) | -24.3% | |||||
| Payroll costs | F | (15,936) | (986) | -45.3% | (18,005) | (395) | -41.9% | (2,069) | -11.5% | ||
| Other provisions and costs | G | (422) | -1.2% | (768) | (47) | -1.8% | (346) | -45.1% | |||
| Other revenues | Н | 2,227 | 6.3% | 2,969 | 6.9% | (742) | -25.0% | ||||
| EBITDA | (5,344) | (1,593) | -15.2% | (4,254) | (990) | -9.9% | (1,090) | -25.6% | |||
| Depreciation & Amortization | - 1 | (3,563) | -10.1% | (3,321) | -7.7% | 242 | 7.3% | ||||
| Asset impairment | - 1 | 0 | 0.0% | (104) | -0.2% | (104) | -100.0% | ||||
| EBIT | (8,907) | (1,593) | -25.3% | (7,679) | (990) | -17.9% | (1,228) | -16.0% | |||
| Finance expense | J | (1,300) | -3.7% | (2,043) | -4.8% | (743) | -36.4% | ||||
| Finance income | J | 677 | 1.9% | 1,917 | 4.5% | (1,240) | -84.7% | ||||
| Profit before tax | (9,530) | (1,593) | -27.1% | (7,805) | (990) | -18.2% | (1,725) | -22.1% | |||
| Income tax | K | 613 | 1.7% | (98) | -0.2% | (711) | n.s. | ||||
| Net profit (loss) of continuing operations before minority interest | (8,917) | (1,593) | -25.3% | (7,903) | (990) | -18.4% | (1,014) | -12.8% | |||
| Minority interest | 0 | - | 0.0% | 0.0% | - | n/a | |||||
| Group net profit (loss) for period | 0 | (8,917) | (1,593) | -25.3% | (7,903) | (990) | -18.4% | (1,014) | -12.8% | ||
| Base earnings per share | (0.245) | (0.224) | |||||||||
| Diluted earnings per share | (0.245) | (0.224) |
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| (€ '000) | 3rd Qtr 2025 | of whichnonrecurrent | % | 3rd Qtr 2024 | of whichnonrecurrent | % |
|---|---|---|---|---|---|---|
| Sales revenue | 13,697 | 100% | 13,734 | 100% | ||
| Cost of material | (6,934) | -50.6% | (6,003) | -43.7% | ||
| Gross profit | 6,763 | 49.4% | 7,731 | 56.3% | ||
| Services costs | (2,026) | (38) | -14.8% | (3,113) | (432) | -22.7% |
| Lease & hire costs | (167) | -1.2% | (210) | -1.5% | ||
| Payroll costs | (5,037) | (418) | -36.8% | (5,952) | (213) | -43.3% |
| Other provisions and costs | 0 | 99 | 0.0% | (105) | 64 | -0.8% |
| Other revenues | 406 | 3.0% | 885 | 6.4% | ||
| EBITDA | (61) | -0.4% | (764) | -5.6% | ||
| Depreciation & Amortization | (1,128) | -8.2% | (1,058) | -7.7% | ||
| Asset impairment | 0 | 0.0% | (19) | -0.1% | ||
| EBIT | (1,189) | -8.7% | (1,841) | -13.4% | ||
| Finance expense | (345) | -2.5% | (640) | -4.7% | ||
| Finance income | 223 | 1.6% | 249 | 1.8% | ||
| Profit before tax | (1,311) | -9.6% | (2,232) | -16.3% | ||
| Income tax | (42) | -0.3% | (160) | -1.2% | ||
| Net profit (loss) of continuing operationsbefore minority interest | (1,353) | -9.9% | (2,392) | -17.4% | ||
| Minority interest | 0 | 0.0% | 0 | 0.0% | ||
| Group net profit (loss) for period | (1,353) | -9.9% | (2,392) | -17.4% |
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| (€'000) | Notes | at September30, 2025 | of which related 2024 parties | of whichrelatedparties |
|---|---|---|---|---|
| ASSETS | ||||
| Intangible assets | La | 59,413 | 62,425 | |
| Property, Plant and equipment | Lb | 7,315 | 8,367 | |
| Investments in affiliate companies | 4 | 4 | ||
| Investments in other companies | 138 | 152 | ||
| Deferred tax assets | 2,175 | 1,647 | ||
| Other non-current assets | 440 | 480 | ||
| Total non-current assets | L | 69,485 | 73,075 | |
| Inventories | 17,248 | 17,141 | ||
| Trade receivables | 8,987 | 12,405 | ||
| Income tax receivables | 980 | 934 | ||
| Other current assets | 1,349 | 1,498 | ||
| Other current financial assets | 17 | 115 | ||
| Derivative instruments | 7 | 29 | ||
| Cash & cash equivalents | 5,599 | 6,170 | ||
| Total current assets | 34,187 | 38,292 | ||
| Total assets | 103,672 | 111,367 | ||
| Share capitalReserves | 9,657(84,350) | 8,879(48,460) | ||
| Share premium reserve | 138,122 | 136,400 | ||
| Net profit (loss) for period Other reserves | (8,917) | (36,155) | ||
| 0 | (93,267) | (84,615) | ||
| Group shareholders' equity | 0 | 54,512 | 60,664 | |
| Equity attributable to minority interest | 0 | _ | - | |
| Equity attributable to minority interest Total shareholders' equity | 0 | 54,512 | -60,664 | |
| Total shareholders' equity | 54,51214,588 | -60,66417,551 | ||
| Total shareholders' equity Medium-/long-term borrowing | , | , | ||
| Total shareholders' equity Medium-/long-term borrowing Employee benefit obligations | 14,588 | 17,551 | ||
| Total shareholders' equity Medium-/long-term borrowing Employee benefit obligations Deferred tax liabilities | 14,5882,182 | 17,5512,331 | ||
| Total shareholders' equity Medium-/long-term borrowing Employee benefit obligations | 14,5882,1822,984 | 17,5512,3313,164 | ||
| Total shareholders' equity Medium-/long-term borrowing Employee benefit obligations Deferred tax liabilities Other non-current liabilities Total non-current liabilities | 14,5882,1822,984830 | 17,5512,3313,1641,200 | ||
| Total shareholders' equity Medium-/long-term borrowing Employee benefit obligations Deferred tax liabilities Other non-current liabilities Total non-current liabilities Trade payables | 14,5882,1822,98483020,584 | 17,5512,3313,1641,20024,246 | 399 | |
| Total shareholders' equity Medium-flong-term borrowing Employee benefit obligations Deferred tax liabilities Other non-current liabilities Total non-current liabilities Trade payables | 14,5882,1822,98483020,58410,174 | 17,5512,3313,1641,20024,2469,040 | 399 | |
| Total shareholders' equity Medium-/long-term borrowing Employee benefit obligations Deferred tax liabilities Other non-current liabilities Trade payables Trade payables from affiliates companies Short-term borrowing | 14,5882,1822,98483020,58410,174349 | 17,5512,3313,1641,20024,2469,040349 399 | 399 | |
| Total shareholders' equity Medium-/long-term borrowing Employee benefit obligations Deferred tax liabilities Other non-current liabilities Total non-current liabilities Trade payables Trade payables from affiliates companies | 14,5882,1822,98483020,58410,17434910,321 | 17,5512,3313,1641,20024,2469,040349 3999,048 | 399 | |
| Total shareholders' equity Medium-/long-term borrowing Employee benefit obligations Deferred tax liabilities Other non-current liabilities Total non-current liabilities Trade payables Trade payables from affiliates companies Short-term borrowing Income tax liabilities | 14,5882,1822,98483020,58410,17434910,321543 | 17,551 2,331 3,164 1,200 24,246 9,040 349 399 9,048 953 | 399 | |
| Medium-/long-term borrowing Employee benefit obligations Deferred tax liabilities Other non-current liabilities Total non-current liabilities Trade payables Trade payables from affiliates companies Short-term borrowing Income tax liabilities Other current liabilities | 14,5882,1822,98483020,58410,17434910,3215437,074 | 17,5512,3313,1641,20024,2469,040349 3999,0489536,902 | 399 | |
| Medium-/long-term borrowing Employee benefit obligations Deferred tax liabilities Other non-current liabilities Trade payables Trade payables from affiliates companies Short-term borrowing Income tax liabilities Other current liabilities Business combination liabilities | 14,5882,1822,98483020,58410,17434910,3215437,074115 | 17,551 2,331 3,164 1,200 24,246 9,040 349 399 9,048 953 6,902 115 | 399 |
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STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
| (€000) | Sharecapital | Legalreserve | Sharepremiumreserve | Conversion reserve | Otherreserves | Cash flowhe dgereserve | Actuarialgains/(losses) ondefined benefitplans reserve | Exchangeratedifferencesreserve | Trea suryshares | Profit (loss)for period | Groupshareholders' equity | Equityattributableto Minorityinterest | Totalshareholders' equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance as at December 31, 2024 | 8,879 | 1,776 | 136,400 | ( 2,187) | (51,514) | 29 | (513) | 4,611 | (662) | ( 36,155) | 60,664 | 60,664 | |
| 2024 Resultallocation | (38,155) | 38,155 | - | ||||||||||
| Profit (loss) as at September 30, 2025 | - | (8,917) | (8,917) | (8,917) | |||||||||
| Comprehensive other profit (loss): | |||||||||||||
| - Hedge transactions | (22) | (22) | (22) | ||||||||||
| - Actua rial gains/(bsses) on defined benefit plans for employees | 22 | 22 | 22 | ||||||||||
| - Foreign balance sheets conversion difference | (545) | (545) | (545) | ||||||||||
| - Exchange differences on e qui tyin vestmentsin foreign companies | (2,768) | (2,768) | (2,788) | ||||||||||
| Total Comprehensive result | (545) | (22) | 22 | (2,766) | (8,917) | ( 12,228) | (12,228) | ||||||
| Performance Share Plan | _ | 25 | 157 | 182 | 182 | ||||||||
| horease of capital | 778 | 1,722 | - | (2,606) | (108) | (108) | |||||||
| Future capital increase payment | 6,000 | 6,000 | 6,000 | ||||||||||
| Balance as at September 30, 2025 | 9,657 | 1,776 | 138,122 | ( 2,732) | (84,250) | 7 | (491) | 1,845 | (505) | (8,917) | 54,512 | 54,512 |
CONDENSED CASH FLOW STATEMENT
| (€'000) | atSeptember30, 2025 | atSeptember30, 2024 | atDecember31, 2024 | |
|---|---|---|---|---|
| Cash flow generated (used) in operations | Α | (1,975) | 683 | 4,277 |
| Cash flow generated (used) in investment activities | В | (2,011) | (2,910) | (4,959) |
| Cash flow generated (absorbed) by financial assets | С | 3,704 | (1,617) | (4,182) |
| Net foreign exchange difference | D | (289) | (429) | (394) |
| Increases (decreases) in cash & cash equivalents | E=A+B+C+D | (571) | (4,273) | ( 5,258) |
| Opening amount in cash & cash equivalents | 6,170 | 11,428 | 11,428 | |
| Cash & cash equivalents at end of period | 5,599 | 7,155 | 6,170 |
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NET FINANCIAL POSITION
| (€'000) | atSeptember30, 2025 | atDecember31, 2024 | atSeptember30, 2024 | |
|---|---|---|---|---|
| Cash | Α | 5,599 | 6,170 | 7,155 |
| Cash equivalents | В | - | - | - |
| Other current financial assets | С | 24 | 144 | 159 |
| Cash equivalent | D=A+B+C | 5,623 | 6,314 | 7,314 |
| Current financial debt | E | 4,905 | 6,808 | 4,905 |
| Current portion of non-current financial debt | F | 5,416 | 2,240 | 5,501 |
| Other current financial liabilities | G | 115 | 115 | 204 |
| Short-term financial position | H=E+F+G | 10,436 | 9,163 | 10,610 |
| Short-term net financial position | I=H-D | 4,813 | 2,849 | 3,296 |
| Non current financial debt | J | 14,588 | 17,551 | 17,699 |
| Debt instrument | K | - | - | - |
| Trade payables and other non-current payables | L | - | _ | - |
| Medium-/long-term net financial position | M=J+K+L | 14,588 | 17,551 | 17,699 |
| (NET FINANCIAL POSITION) NET DEBTESMA | N=I+M | 19,401 | 20,400 | 20,995 |
NET WORKING CAPITAL
| (€'000) | atSeptember30, 2025(b) | atDecember31, 2024(a) | atSeptember30, 2024 | Changes(b-a) |
|---|---|---|---|---|
| Inventories | 17,248 | 17,141 | 20,568 | 107 |
| Trade receivables | 8,987 | 12,405 | 11,007 | (3,418) |
| Income tax receivables | 980 | 934 | 1,480 | 46 |
| Other current assets | 1,349 | 1,498 | 1,436 | (149) |
| Current assets | 28,564 | 31,978 | 34,491 | (3,414) |
| Trade payables | (10,174) | (9,040) | (8,408) | (1,134) |
| Trade payables from affiliates companies | (349) | (399) | 0 | 50 |
| Income tax liabilities | (543) | (953) | (594) | 410 |
| Other current liabilities | (7,074) | (6,902) | (6,534) | (172) |
| Current liabilities | (18,140) | (17,294) | (15,536) | (846) |
| Net working capital | 10,424 | 14,684 | 18,955 | (4,260) |
