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Eurotech Interim / Quarterly Report 2026
4469_rns_2026-05-14_9a912f77-b144-4d1a-b834-9df240adbb37.pdf
Interim / Quarterly Report
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consolidated interim management report
at 31 March 2026
eurotech
This document has been translated into English for the convenience of readers outside Italy. The original Italian document should be considered the authoritative version.
Date of issue: 14 May 2026
This report is available online
in the "Investors" section of
www.eurotech.com
EUROTECH S.p.A.
Registered offices: Via Fratelli Solari 3/A, Amaro (Udine), Italy
Share capital: €14.906.386,25 fully paid in
Tax code and
Udine Company Register no. 01791330309
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
eurotech
CONTENTS
Corporate Bodies ... 4
Performance highlights ... 5
Revenues by business line ... 6
Summary of the results ... 7
Information for shareholders ... 8
The Eurotech Group ... 9
Summary of performance in the first quarter of 2026 and business outlook ... 10
Introduction ... 10
Reporting policies ... 10
Operating performance in the period ... 12
Financial statements and explanatory notes ... 14
Consolidated income statement ... 14
Consolidated statement of comprehensive income ... 15
Consolidated statement of financial position ... 16
Consolidated statement of changes in shareholders' equity ... 17
Net financial position ... 18
Net working capital ... 18
Cash flows ... 19
A – Group business ... 20
B – Scope of consolidation ... 20
C – Revenues ... 21
D – Costs of raw & ancillary materials and consumables used ... 23
E – Costs for services ... 23
F – Payroll costs ... 23
G – Other provisions and costs ... 24
H – Other revenues ... 24
I – Depreciation, amortisation and impairment ... 24
J – Financial income and expenses ... 25
K – Income taxes ... 25
L – Non-current assets ... 26
M – Net working capital ... 27
N – Net financial position ... 27
O – Changes in shareholders' equity ... 28
P – Significant events in the quarter ... 28
Q – Events after 31 March 2026 ... 29
R – Risks and uncertainties ... 29
S – Other information ... 29
Statement of the Financial Reporting Manager ... 31
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
eurotech
Corporate Bodies
| Board of Directors | |
|---|---|
| Chairperson | Luca di Giacomo |
| Deputy Chairperson | Aldo Fumagalli 1 3 |
| Managing Director | Massimo Milan |
| Director | Laura Amadesi 1 2 3 4 5 |
| Director | Davide Albino Carando 1 |
| Director | Michela Costa 1 2 3 4 5 |
| Director | Tiziana Olivieri 1 2 4 5 |
The current Board of Directors was appointed by the Ordinary Shareholders' Meeting held on April 29, 2026; it will remain in office until the financial statements for the 2028 fiscal year are approved.
| Board of Statutory Auditors | |
|---|---|
| Chairperson | Fabio Monti |
| Statutory Auditor | Laura Briganti |
| Statutory Auditor | Cristiano Proserpio |
| Substitute Auditor | Daniele Englaro |
| Substitute Auditor | Stefania Serina |
The Board of Statutory Auditors currently in office was appointed by shareholders at the Annual General Meeting of 29 April 2026, and will remain in office until approval of the 2028 financial statements
| Independent Auditor | |
|---|---|
| Ernst & Young |
The independent auditor was appointed for the period 2023-2031 by shareholders at the Annual General Meeting of 27 April 2023.
| Corporate name and registered offices of the Parent Company |
|---|
| Eurotech S.p.A. |
| Via Fratelli Solari, 3/A |
| 33020 Amaro (UD) |
| Iscrizione al registro delle |
| Imprese di Udine 01791330309 |
- Non-executive Directors
- Independent Directors pursuant to the Corporate Governance Code issued by the Italian Corporate Governance Committee for Listed Companies
- Member of the Control and Risks Committee
- Member of the Committee for Transactions with Related Parties
- Member of the Remuneration and Appointments Committee
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
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Performance highlights
Financial data
| (€'000) OPERATING RESULTS | Q1 2026 | % | Q1 2025 | % | % change |
|---|---|---|---|---|---|
| SALES REVENUES | 10.714 | 100,0% | 8.283 | 100,0% | 29,3% |
| GROSS PROFIT MARGIN (*) | 5.269 | 49,2% | 4.106 | 49,6% | 28,3% |
| EBITDA ADJ (***) | (1.621) | -15,1% | (3.616) | -43,7% | 55,2% |
| Non recurring costs | (136) | -1,3% | (107) | -1,3% | -27,1% |
| EBITDA (**) | (1.757) | -16,4% | (3.723) | -44,9% | 52,8% |
| EBIT (***) | (2.794) | -26,1% | (4.836) | -58,4% | 42,2% |
| PROFIT (LOSS) BEFORE TAXES | (2.829) | -26,4% | (5.094) | -61,5% | 44,5% |
| GROUP NET PROFIT (LOSS) FOR THE PERIOD | (2.637) | -24,6% | (4.996) | -60,3% | 47,2% |
() Gross profit margin is the difference between revenues from sales of goods and services and use of raw materials.
() EBITDA, an intermediate figure, is earnings before amortisation, depreciation and impairment of non-current assets, financial income and expenses, the valuations of affiliates at equity and of income taxes for the period. This is a measure used by the Group to monitor and assess operating performance. Since the composition of EBITDA is not regulated by the reference accounting standards, the calculation criterion applied by the Group may not be consistent with that used by other companies and would therefore not be comparable.
() EBIT, or earnings before financial income and expenses, the valuations of affiliates at equity and of income taxes for the period.
(*)ADJ. EBITDA is an intermediate figure, determined gross of non-recurring costs and revenues, before amortisation, depreciation and impairment of fixed assets, financial income and expenses, valuations of affiliates at equity and income taxes for the period. This is a measure used by the Group to monitor and assess its operating performance, net of any non-recurring costs or revenues that therefore do not occur frequently in the ordinary course of business. Since the composition of EBITDA is not regulated by the reference accounting standards, the calculation criterion applied by the Group may not be consistent with that used by other companies and would therefore not be comparable.
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
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Statement of financial position data
| €'000 | at March 31, 2026 | at December 31, 2025 | at March 31, 2025 |
|---|---|---|---|
| BALANCE SHEET AND FINANCIAL HIGHLIGHTS | |||
| NET NON-CURRENT ASSETS | 65.104 | 65.365 | 73.473 |
| NET WORKING CAPITAL | 11.580 | 9.728 | 10.450 |
| NET INVESTED CAPITAL* | 71.231 | 69.515 | 77.255 |
| SHAREHOLDERS' EQUITY | 61.244 | 52.715 | 58.576 |
| NET FINANCIAL POSITION | 9.987 | 16.800 | 18.679 |
Number of employees
| at March 31, 2026 | at December 31, 2025 | at March 31, 2025 | |
|---|---|---|---|
| EMPLOYEES | 303 | 317 | 342 |
Revenues by business line
The only business line that the Group presides over is the one called "Modules and Platforms," which consists of: a) Embedded electronic computing modules and systems for the industrial, transportation, medical and energy sectors; b) Low-power and high-performance Edge Computers for uses in both the Internet of Things (IoT) and for realizing applications that make use of Artificial Intelligence (AI) algorithms; and c) Frameworks and software platforms for IoT applications.
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
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Summary of the results
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
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Information for shareholders
The ordinary shares of Eurotech S.p.A., the Parent Company of the Eurotech Group since 30 November 2005, have been listed in the Euronext Star Milan segment of the Euronext Milan market organised and managed by Borsa Italiana S.p.A..
Share capital of Eurotech S.p.A. as at 31 March 2026
| Share capital | Euro 14,906,386.25 |
|---|---|
| Number of ordinary shares (without nominal unit value) | 59,625,545 |
| Number of savings shares | - |
| Number of Eurotech S.p.A. ordinary treasury shares | 135,618 |
| Stock market capitalisation (based on the share’s average price in March 2026) | €55 million |
| Stock market capitalisation (based on the share’s price at 31 March 2026) | €55 million |
Performance of Eurotech S.p.A. shares
Relative performance EUROTECH S.p.A. 01.01.2026 – 31.03.2026
The line chart shows the share’s performance based on daily reference prices
The candle chart shows the share’s daily maximum and minimum prices
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
1
eurotech
The Eurotech Group
The Group has a long tradition spanning more than thirty years in the design and manufacture of embedded computers for specialized applications. This is a niche market characterized by high unit value and low volumes, where the systems' ability to operate in harsh environments and ensure operational continuity and long‐term reliability is a fundamental requirement for industrial customers. For over ten years, the Group has been evolving toward Edge Computing and the Industrial Internet of Things (IoT), supported by significant investments in the development of hardware‐integrated software and a strongly open‐source‐oriented approach.
The Group's current technological positioning among the leading players in the target market is also confirmed by independent industry analyses, including the Professional User Rating – Engineering Solutions (PUR ES) 2025 report by tech consult (Heise Group), which recognizes the Group as one of the leading providers of IoT platforms and industrial edge solutions.
The strengthening of its competitive positioning is further supported by strategic partnerships, including: These collaborations further strengthen the Group's technology ecosystem and consolidate its role as a leading partner for highly reliable Edge and IoT solutions, capable of integrating industrial hardware, software platforms, and advanced cybersecurity technologies for mission‐critical applications.
- the collaboration with Intertrust to integrate advanced security technologies into edge solutions for energy infrastructure and Virtual Power Plants;
- the agreement with AxxonSoft for the development of video analytics solutions based on Edge AI;
- the Memorandum of Understanding with PNY Technologies Europe & MEA aimed at accelerating the development of high‐performance solutions for Edge AI applications.
The key differentiators of Eurotech's offering in the Industrial IoT landscape are as follows:
- technology that overcomes the traditional separation between Operational Technology (OT) and Information Technology (IT) at the Edge through integrated hardware‐software solutions; this separation is generally recognized as one of the main obstacles to the implementation of industrial IoT projects;
- Plug&Play connectivity to field assets, which accelerates implementation times and reduces integration costs;
- certified connectivity to major cloud platforms, thanks to partnerships with leading IT industry players, which reduces integration times and risks in IoT projects;
- advanced cybersecurity solutions, featuring technologies certified to the latest international standards (IEC 62443‐4‐1 and IEC 62443‐4‐2).
Today, the Group's offering is modular and provides for various levels of hardware and software integration. It includes:
- embedded PCs, in the form of boards and subsystems, which represent Eurotech's traditional offering and consist primarily of hardware solutions with an integrated operating system;
- Industrial PCs (IPCs), which represent the main offering of InoNet Computer GmbH, the German subsidiary acquired in September 2022;
- Edge gateways, devices that enable communication between field assets and data platforms in the cloud, both public and private;
- Edge computers, rugged computing units installed in the field, near the assets, dedicated to the local processing of data generated by operating systems;
- Edge AI appliances, high‐performance integrated hardware‐software systems designed to execute artificial intelligence algorithms directly in the field, securely, reducing the need to transfer large volumes of data to centralized infrastructures;
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
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- software for integration between Operational Technology and Information Technology, including the OT-side edge framework Everyware Software Framework (ESF) and the IT-side integration platform Everyware Cloud (EC).
In this context, Eurotech's solutions represent an enabling technological infrastructure for Industrial AI and Physical AI applications, where data processing occurs directly near the assets and operational infrastructure.
The Group has historically been active in the industrial, transportation, and medical sectors. More recently, Eurotech's solutions have also enabled entry into new application areas, including the energy sector.
- The recent “Eurotech neXt” strategic plan focuses on four vertical markets characterized by particularly promising size and growth rates:
- industrial,
- transportation & off-road,
- renewable energy & energy-gas-water networks,
- defense & aerospace.
Summary of performance in the first quarter of 2026 and business outlook
Introduction
The interim management statement of the Eurotech Group as at 31 March 2026, which has not been independently audited, and the financial statements for comparative periods were drawn up according to the IASs/IFRSs issued by the International Accounting Board and endorsed by the European Union.
The Group's results as at 31 March 2026 and comparable periods were prepared according to the IASs/IFRSs in force on the date of preparation and the statements drawn up according to Annex 3D of the Italian Issuers' Regulation no. 11971 of 14 May 1999, as amended and supplemented.
Reporting policies
The consolidated financial statements were drafted on the basis of financial statements as at 31 March 2026 prepared by the consolidated companies and adjusted, where necessary, to align them with the Group's IFRS-compliant accounting and classification policies.
The assessment and accounting policies and consolidation methods used to prepare the Consolidated Quarterly Report are consistent with those used in the Group Consolidated Annual Financial Report as at 31 December 2025, to which express reference is made, except for the adoption of new standards, amendments and interpretations in force as of 1 January 2026.
The calculation of taxes was carried out on the basis of the best possible estimate that can currently be carried out, also taking into consideration the tax benefit of tax-losses carried forward based on the
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
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expected results for the end of the year. According to the criterion used for translation into Euro of accounts expressed in different currencies, statement of financial position items are translated at the exchange rate in effect on the final day of the accounting period, and income statement items are translated at the average exchange rate for the period. Differences arising from translation of the statement of financial position and income statements are posted to a Shareholders' Equity reserve.
Unless otherwise specified, the financial statements, tables and explanatory notes are expressed in thousands of Euro.
In accordance with CONSOB requirements, Income Statement figures are shown for the quarter under review and are compared with data for the same period in the previous financial year (FY). Restated Balance Sheet figures, which refer to the closing date of the quarter, are compared with the figures at the closing date of the previous FY. The format of the financial statements is the same as that used in the Half-Yearly Report and in the Annual Financial Statements.
The preparation of the financial statements and the related explanatory notes required the use of estimates and assumptions, with particular reference to provisions for impairment and risk reserves. Estimates are revised periodically, and any adjustment, following changes in the circumstances on which the estimate was based or in light of new information, is booked in the income statement. The use of estimates is an essential part of preparing the accounting statements and is not prejudicial to their overall reliability.
This document presents some alternative performance indicators to allow for better evaluation of the Group's economic and financial performance. These are as follows:
- Gross profit, or the difference between revenues from sale of products and services and consumption of raw materials;
- EBITDA, or earnings before amortisation, depreciation and impairment of fixed assets, the valuation of affiliates at equity, financial income and expenses and income taxes for the period;
- EBIT, or earnings before the valuation of affiliates at equity, financial income and expenses and income taxes for the period.
11
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
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Operating performance in the period
Consolidated revenues for the first quarter of 2026 were €10.71 million, compared to €8.28 million in the first three months of 2025. At constant exchange rates, the increase was 36.8 percent, while at historical exchange rates it was 29.3 percent.
Growth in the first quarter of 2026 reflects the gradual improvement in business momentum and the order backlog observed in the second half of 2025, which continued positively into the first quarter of 2026.
All geographic regions showed an improvement compared to the first quarter of 2025.
In particular, within the European region, Germany showed more significant growth during the quarter compared to the rest of Europe.
The international macroeconomic and geopolitical environment continues to be characterized by volatility that, while not directly affecting the Group's operations, may put pressure on costs and the availability of certain components, particularly in light of energy cost trends and the persistent volatility of the electronic components supply chain—specifically memory and solid-state drives (SSDs), which continue to experience high price volatility.
The first margin, as a percentage of revenue, it remained essentially steady at 49.2% compared to the 49.6% recorded in the first quarter of 2025.
This trend reflects the different product mix and changes in the costs of certain electronic components, as well as the continuous improvement initiatives implemented throughout the supply chain to keep the Group's offerings competitive even in environments characterized by greater complexity in the procurement of strategic components.
In the three months under review, operating costs before adjustments amounted to €7.44 million, and compares with €8.98 million in the first three months of 2025. These include, only in 2026, €0.14 million (€0.11 million in 2025) in non-recurring costs related to the restructuring of the operating structure, which began more than 15 months ago. At constant exchange rates, the reduction in costs is €1.2 million. This reduction is mainly due to lower personnel costs, as a result of both a reduction in the number of employees done during 2025 and lower costs due to government subsidies (or similar arrangements in Italy.
Non-recurring costs recognized in 2026 amount to €0.14 million and relate to the Group's reorganization activities and entirely concern one-off personnel costs associated with the reduction in the workforce. During the same period in 2025, non-recurring costs which were also entirely related to personnel expenses amounted to €0.11 million.
Adjusted EBITDA for the first three months amounted to €-1.62 million, compared to €-3.62 million in 2025. The improvement of €2.00 million is attributable both to the positive impact of a higher gross margin resulting from increased revenue and to a reduction in operating costs.
Including non-recurring costs, EBITDA for the first three months amounted to €-1.76 million, compared with a loss of €-3.72 million in the first three months of 2025.
EBIT, or operating income for the year, due to depreciation and amortization charged to the income statement in the first three months of 2026, amounted to €-2.79 million, compared to €-4.84 million in the first three months of 2025.
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Finance expense during the first three months of 2026 was negative by €0.03 million, while it had been also negative by €0.26 million in the first three months of 2025. The main effect is related to foreign exchange management. For more detail, see the comments in Note "J".
In terms of the Group's net result, the value for the first quarter was €-2.64 million, while it was €-5.0 million in the same period of 2025.
As of March 31, 2026, the Group had a net financial debt of €9.99 million, compared to an amount of €16.80 million as of December 31, 2025. The reduction in net financial debt primarily reflects the effects of the capital increase completed in February 2026, partially offset by the increase in net working capital—and, in particular, inventory levels—intended to support expected sales in the coming quarters, as well as cash outflows related to operating activities in the first quarter of 2026.
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
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Financial statements and explanatory notes
The trend in operating performance can be seen in the restated consolidated income statement and is shown below, in both absolute amounts and percentage terms:
Consolidated income statement
| (€ 1000) | Notes | Q1 2026 (b) | of which non recurrent | of which related parties | % | Q1 2025 (a) | of which non recurrent | of which related parties | % | change (b-a) | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| amount | % | ||||||||||
| Sales revenue | C | 10.714 | - | 100,0% | 8.283 | - | 100,0% | 2.431 | 29,3% | ||
| Cost of material | D | (5.445) | -50,8% | (4.177) | -50,4% | 1.268 | 30,4% | ||||
| Gross profit | 5.269 | 49,2% | 4.106 | 49,6% | 1.163 | 28,3% | |||||
| Services costs | E | (2.554) | - | (16) | -23,8% | (3.023) | (152) | -36,5% | (469) | -15,5% | |
| Lease & hire costs | (168) | -1,6% | (197) | -2,4% | (29) | -14,7% | |||||
| Payroll costs | F | (4.565) | (136) | -42,6% | (5.578) | (107) | -67,3% | (1.013) | -18,2% | ||
| Other provisions and costs | G | (155) | -1,4% | (181) | -2,2% | (26) | -14,4% | ||||
| Other revenues | H | 416 | 3,9% | 1.150 | 13,9% | (734) | -63,8% | ||||
| EBITDA | (1.757) | (136) | -16,4% | (3.723) | (107) | -44,9% | 1.966 | 52,8% | |||
| Depreciation & Amortization | I | (1.037) | -9,7% | (1.113) | -13,4% | (76) | -6,8% | ||||
| EBIT | (2.794) | (136) | -26,1% | (4.836) | (107) | -58,4% | 2.042 | 42,2% | |||
| Finance expense | J | (436) | -4,1% | (501) | -6,0% | (65) | -13,0% | ||||
| Finance income | J | 401 | 3,7% | 243 | 2,9% | 158 | 65,0% | ||||
| Profit before tax | (2.829) | (136) | -26,4% | (5.094) | (107) | -61,5% | 2.265 | 44,5% | |||
| Income tax | K | 192 | 1,8% | 98 | 1,2% | (94) | -95,9% | ||||
| Net profit (loss) of continuing operations before minority interest | (2.637) | (136) | -24,6% | (4.996) | (107) | -60,3% | 2.359 | 47,2% | |||
| Minority interest | O | - | 0,8% | - | 0,8% | - | n/a | ||||
| Group net profit (loss) for period | O | (2.637) | (136) | -24,6% | (4.996) | (107) | -60,3% | 2.359 | 47,2% | ||
| Base earnings per share | (0,057) | (0,142) | |||||||||
| Diluted earnings per share | (0,057) | (0,142) |
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
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Consolidated statement of comprehensive income
| Q1 2026 | Q1 2025 | |
|---|---|---|
| (€ '000) | ||
| Net profit (loss) before minority interest (A) | (2.637) | (4.996) |
| Other elements of the statement of comprehensive income | ||
| Other comprehensive income to be reclassified to profit or loss insubsequent periods: | ||
| Net profit/(loss) from Cash Flow Hedge | (2) | (10) |
| Foreign balance sheets conversion | (447) | 1.254 |
| Exchange differences on equity method | - | - |
| Exchange differences on equity investments in foreign companies | 465 | (946) |
| After taxes net other comprehensive income to be reclassified to profit or loss in subsequent periods (B) | 16 | 298 |
| Items not to be reclassified to profit or loss in subsequent periods: | ||
| Actuarial gains/(losses) on defined benefit plans for employees | - | - |
| After taxes net other comprehensive income not being reclassified to profit or loss in subsequent periods (C) | - | - |
| Comprehensive net result (A+B+C) | (2.621) | (4.698) |
| Comprehensive minority interest | - | - |
| Comprehensive Group net profit (loss) for period | (2.621) | (4.698) |
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
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Consolidated statement of financial position
| (€'000) | Notes | at March 31, 2026 | of which related parties | at December 31, 2025 | of which related parties |
|---|---|---|---|---|---|
| ASSETS | |||||
| Intangible assets | L a | 55.750 | 55.938 | ||
| Property, Plant and equipment | L b | 6.667 | 6.897 | ||
| Investments in affiliate companies | 4 | 4 | |||
| Investments in other companies | 140 | 137 | |||
| Deferred tax assets | 2.127 | 1.973 | |||
| Other non-current assets | 416 | 416 | |||
| Total non-current assets | L | 65.104 | 65.365 | ||
| Inventories | 15.843 | 11.918 | |||
| Trade receivables | 11.796 | 13.929 | |||
| Income tax receivables | 1.085 | 568 | |||
| Other current assets | 1.886 | 1.361 | |||
| Other current financial assets | 17 | 17 | |||
| Derivative instruments | 2 | 4 | |||
| Cash & cash equivalents | 10.466 | 6.455 | |||
| Total current assets | 41.095 | 34.252 | |||
| Total assets | 106.199 | 99.617 | |||
| LIABILITIES AND EQUITY | |||||
| Share capital | 14.906 | 9.657 | |||
| Share premium reserve | 150.363 | 138.122 | |||
| Other reserves | (104.025) | (95.064) | |||
| Group shareholders' equity | O | 61.244 | 52.715 | ||
| Equity attributable to minority interest | O | - | - | ||
| Total shareholders' equity | O | 61.244 | 52.715 | ||
| Medium-/long-term borrowing | 11.623 | 11.574 | |||
| Employee benefit obligations | 1.804 | 1.938 | |||
| Deferred tax liabilities | 2.870 | 2.865 | |||
| Other non-current liabilities | 779 | 775 | |||
| Total non-current liabilities | 17.076 | 17.152 | |||
| Trade payables | 10.985 | 9.384 | |||
| Trade payables from affiliates companies | 200 | 200 | 209 | 429 | |
| Short-term borrowing | 8.748 | 11.601 | |||
| Income tax liabilities | 656 | 879 | |||
| Other current liabilities | 7.189 | 7.576 | |||
| Business combination liabilities | 101 | 101 | |||
| Total current liabilities | 27.879 | 29.750 | |||
| Total liabilities | 44.955 | 46.902 | |||
| Total liabilities and equity | 106.199 | 99.617 |
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
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Consolidated statement of changes in shareholders' equity
| (FIRM) | Share capital | Legal reserve | Share premium reserve | Conversion reserve | Other reserves | Cash flow hedge reserve | Actuarial gains/(losses) on defined benefit plans reserve | Exchange rate differences reserve | Treasury shares | Profit (loss) for period | Group shareholder s' equity | Equity attributable to Minority Interest | Total shareholder s' equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance as at December 31, 2025 | 9,657 | 1,776 | 138,122 | (5,250) | (83,250) | 4 | (333) | 1,829 | (568) | (9,273) | 52,715 | - | 52,715 |
| 2025 Result allocation | - | - | - | - | (9,272) | - | - | - | - | 9,272 | - | - | - |
| Profit (loss) as at March 31, 2026 | - | - | - | - | - | - | - | - | - | (2,637) | (2,637) | - | (2,637) |
| Comprehensive other profit (loss): | |||||||||||||
| - Hedge transactions | - | - | - | - | - | (2) | - | - | - | - | (2) | - | (2) |
| - Actuarial gains/(losses) on defined benefit plans for employees | - | - | - | - | - | - | - | - | - | - | - | - | - |
| - Foreign balance sheets conversion difference | - | - | - | (447) | - | - | - | - | - | - | (447) | - | (447) |
| - Exchange differences on equity investments in foreign companies | - | - | - | - | - | - | - | 465 | - | - | 465 | - | 465 |
| Total Comprehensive result | - | - | - | (447) | - | (2) | - | 465 | - | (2,637) | (2,631) | - | (2,631) |
| Performance Share Plan | - | - | - | - | - | - | - | - | 264 | - | 264 | - | 264 |
| Buyback of Treasury stock | - | - | - | ||||||||||
| Increase of capital | 5,249 | 12,241 | - | (8,604) | - | 8,886 | 8,886 | ||||||
| Future capital increase payment | - | 2,000 | - | - | 2,000 | 2,000 | |||||||
| Balance as at March 31, 2026 | 14,866 | 1,776 | 150,363 | (5,697) | (99,126) | 2 | (333) | 2,294 | (364) | (2,637) | 61,244 | - | 61,244 |
| (FIRM) | Share capital | Legal reserve | Share premium reserve | Conversion reserve | Other reserves | Cash flow hedge reserve | Actuarial gains/(losses) on defined benefit plans reserve | Exchange rate differences reserve | Treasury shares | Profit (loss) for period | Group shareholder s' equity | Equity attributable to Minority Interest | Total shareholder s' equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Balance as at December 31, 2024 | 8,879 | 1,776 | 136,486 | (2,187) | (51,514) | 29 | (513) | 4,611 | (662) | (36,155) | 60,664 | - | 60,664 |
| 2024 Result allocation | - | - | - | - | (36,155) | - | - | - | - | 36,155 | - | - | - |
| Profit (loss) as at March 31, 2025 | - | - | - | - | - | - | - | - | - | (4,996) | (4,996) | - | (4,996) |
| Comprehensive other profit (loss): | |||||||||||||
| - Hedge transactions | - | - | - | - | - | (10) | - | - | - | - | (10) | - | (10) |
| - Foreign balance sheets conversion difference | - | - | - | 1,254 | - | - | - | - | - | - | 1,254 | - | 1,254 |
| - Exchange differences on equity investments in foreign companies | - | - | - | - | - | - | - | (946) | - | - | (946) | - | (946) |
| Total Comprehensive result | - | - | - | 1,254 | - | (10) | - | (946) | - | (4,996) | (4,696) | - | (4,696) |
| - Performance Share Plan | - | - | - | - | 110 | - | - | - | - | - | 110 | - | 110 |
| Future capital increase payment | - | 2,500 | - | - | 2,500 | 2,500 | |||||||
| Balance as at March 31, 2025 | 8,879 | 1,776 | 136,486 | (933) | (85,859) | 19 | (513) | 3,865 | (662) | (4,996) | 58,576 | - | 58,576 |
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
eurotech
Net financial position
The table below shows the composition of the Group's net financial position as at 31 March 2026, compared to the similar position as at 31 March 2025 and 31 December 2025, calculated as defined by CONSOB notice no. 5/21 of 29 April 2021, which refers to the Guidelines of the European Securities and Markets Authority (ESMA), issued on 15 July 2020 and effective from 5 May 2021.
| (€'000) | at March 31, 2026 | at December 31, 2025 | at March 31, 2025 | |
|---|---|---|---|---|
| Cash | A | 10.466 | 6.455 | 5.232 |
| Cash equivalents | B | - | - | - |
| Other current financial assets | C | 19 | 21 | 134 |
| Cash equivalent | D=A+B+C | 10.485 | 6.476 | 5.366 |
| Current financial debt | E | 2.748 | 3.934 | 6.808 |
| Current portion of non-current financial debt | F | 6.000 | 7.667 | 1.089 |
| Other current financial liabilities | G | 101 | 101 | 115 |
| Short-term financial position | H=E+F+G | 8.849 | 11.702 | 8.012 |
| Short-term net financial position | I=H-D | (1.636) | 5.226 | 2.646 |
| Non current financial debt | J | 11.623 | 11.574 | 16.033 |
| Debt instrument | K | - | - | - |
| Medium-/long-term net financial position | M=J+K+L | 11.623 | 11.574 | 16.033 |
| (NET FINANCIAL POSITION) NET DEBT ESMA | N=I+M | 9.987 | 16.800 | 18.679 |
The consolidated net financial position as at 31 March 31 2025 amounted to a net financial debt of €9.99 million, an improvement of €6.81 million compared to a net financial debt of €16.80 million as at 31 December 2025. With reference to liquidity, which amounts to €10.47 million, there was an operating cash utilization of €2.62 million in the period under review, €0.44 million was used for investments and €3.59 million as net repayment of borrowings (taking into account actual repayments of short- and long-term borrowings and interest paid), proceeds from future capital increases and the capital increase completed in February 2026, as well as a foreign exchange effect of €0.22 million.
Net working capital
The Group's net working capital as at 31 March 2026, compared with the situation as at 31 5 and 31 December 2025, is as follows:
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
eurotech
| (€'000) | 2026 (b) | 31, 2025 (a) | 2025 | Changes (b-a) |
|---|---|---|---|---|
| Inventories | 15.843 | 11.918 | 18.336 | 3.925 |
| Trade receivables | 11.796 | 13.929 | 7.645 | (2.133) |
| Income tax receivables | 1.085 | 568 | 1.538 | 517 |
| Other current assets | 1.886 | 1.361 | 1.924 | 525 |
| Current assets | 30.610 | 27.776 | 29.443 | 2.834 |
| Trade payables | (10.985) | (9.384) | (9.693) | (1.601) |
| Trade payables from affiliates companies | (200) | (209) | (429) | 9 |
| Income tax liabilities | (656) | (879) | (906) | 223 |
| Other current liabilities | (7.189) | (7.576) | (7.965) | 387 |
| Current liabilities | (19.030) | (18.048) | (18.993) | (982) |
| Net working capital | 11.580 | 9.728 | 10.450 | 1.852 |
Cash flows
| (€'000) | at March 31, 2026 | at December 31, 2025 | at March 31, 2025 | |
|---|---|---|---|---|
| Cash flow generated (used) in operations | A | (2.621) | 205 | 564 |
| Cash flow generated (used) in investment activities | B | (441) | (2.122) | (1.019) |
| Cash flow generated (absorbed) by financial assets | C | 7.298 | 2.780 | (402) |
| Net foreign exchange difference | D | (225) | (578) | (81) |
| Increases (decreases) in cash & cash equivalents | E=A+B+C+D | 4.011 | 285 | (938) |
| Opening amount in cash & cash equivalents | 6.455 | 6.170 | 6.170 | |
| Cash & cash equivalents at end of period | 10.466 | 6.455 | 5.232 |
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
@eurotech
A - Group business
Eurotech is a Group that has historically been active in the research, development and marketing of miniaturised computers for special applications, characterised by adverse operating conditions and/or a demand for high reliability. Over the last ten years Eurotech evolved its offering towards solutions with integrated hardware and software for the Internet of Things, consisting of intelligent devices (Edge gateways, Edge servers, Edge AI) and a software platform for connectivity and integration with the cloud, both public and private.
The Group's activities are represented in a single sector (called "NanoPC") which consists of: a) embedded computing modules and systems for industrial, transport, medical, energy and grids; b) Industrial PCs (IPC); c) Edge computers featuring low power consumption and high performances, to be used both in Internet of Things (IoT) solutions and to create applications where Artificial Intelligence (AI) algorithms are used; d) software frameworks and platforms for IoT applications.
Activity in this line is carried out by Eurotech S.p.A., which mainly operates in Europe, Eurotech Inc. (USA), which mainly operates in the US, Eurotech Ltd (U.K.), which mainly operates in the UK, InoNet computer GmbH, which mainly operates in Germany, and Advanet Inc. (Japan), which mainly operates in Japan. Our products are marketed under the trademarks Eurotech, Dynatem, Advanet e InoNet.
B - Scope of consolidation
The companies included in the scope of consolidation on a line-by-line basis as at 31 March 2026 are as follows:
| Company name | Registered offices | Share capital | Group share |
|---|---|---|---|
| Parent company | |||
| Eurotech S.p.A. | Via Fratelli Solari 3/A - Amaro (Udine, Italy) | €14,906,386.25 | |
| Subsidiaries consolidated line-by-line | |||
| EthLab S.r.l. | Via Dante, 300 - Pergine Valsugana (Trento, Italy) | € 115,000 | 100.00% |
| Eurotech Inc. | Columbia - MD (USA) | USD26,500,000 | 100.00% |
| Eurotech Ltd. | Cambridge (UK) | GBP 33,333 | 100.00% |
| E-Tech USA Inc. | Columbia - MD (USA) | USD 8,000,000 | 100.00% |
| I.P.S. Sistemi Programmabili S.r.l. in liquidation | Via Fratelli Solari 3/A - Amaro (Udine, Italy) | € 51,480 | 100.00% |
| InoNet Computer GmbH | Taufkirchen (Germany) | € 250,000 | 100.00% |
| Advanet Inc. | Okayama (Japan) | JPY 72,440,000 | 90.00% (1) |
(1) Officially, the Group owns 90 percent of the company, but as Advanet holds 10 percent of the share capital in the form of treasury shares, it is fully consolidated.
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
@eurotech
Affiliates consolidated at equity
| Rotowi Technologies S.p.A. in Via Carlo Ghega,15 – Trieste (TS), Italy liquidazione (ex U.T.R.I. S.p.A.) | 21,31% | |
|---|---|---|
| Insulab S.r.l. | Viale Umberto I 24/C – Sassari (SS), Italy | 40,00% |
Other smaller companies valued at fair value
| Kairos Autonomi Inc. | Sandy – UT (USA) | 19,00% |
|---|---|---|
No changes took place with regard to subsidiaries and affiliates in the period as at 31 March 2026 compared with 31 December 2025.
The exchange rates used to translate the financial statements of foreign companies into the Eurotech Group's reference currency (euro) are presented in the following table and correspond to those issued by the Italian Foreign Exchange Bureau:
| Currency | Average 3M 2026 | As of March 31, 2026 | Average 2025 | As of December 31, 2025 | Average 3M 2025 | As of March 31, 2025 |
|---|---|---|---|---|---|---|
| British pound sterling | 0,86824 | 0,86833 | 0,85679 | 0,87260 | 0,83574 | 0,83536 |
| Japanese Yen | 183,59556 | 183,39000 | 169,04345 | 184,09000 | 160,45254 | 161,60000 |
| USA Dollar | 1,17026 | 1,14980 | 1,12998 | 1,17500 | 1,05234 | 1,08150 |
C – Revenues
Revenues generated by the Group in the first quarter of 2026 amounted to €10.71 million (€8.28 million in the first three months of 2025), an increase of 29.3% compared to the same period of the previous year. At constant exchange rates, total revenue would show an even greater increase, reaching 36.8%. This change is linked to the trend in orders, which remain 20% higher than in the same period last year, and essentially reflects the historical pattern of the first quarter's share of annual total revenue.
The Group for management purposes is organized into one business area, also called the business sector, which is called "Modules and Platforms."
Based on the business monitoring criteria currently used, information is provided on a geographic basis in relation to the location of the Group's various entities.
The geographical areas of the Group are defined by the location of the Group's assets and operations. The areas identified within the Group are: Europe, North America and Asia.
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
@eurotech
Revenues by business region
As specifically regards the breakdown of revenues of the business units by geographical area, the same can be further detailed as follows:
| (€'000) | North America | Europe | Asia | Correction, reversal and elimination | Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 2026 | Q1 2025 | % YoY Change | Q1 2026 | Q1 2025 | % YoY Change | Q1 2026 | Q1 2025 | % YoY Change | Q1 2026 | Q1 2025 | % YoY Change | Q1 2026 | Q1 2025 | % YoY Change | |
| Third party Sales | 1.790 | 546 | 5.531 | 4.704 | 3.393 | 3.033 | 0 | 0 | 10.714 | 8.283 | |||||
| Intra-sector Sales | 342 | 1 | 2.023 | 324 | 544 | 0 | (2.909) | (325) | 0 | 0 | |||||
| Total Sales revenues | 2.132 | 547 | 260,6% | 7.554 | 5.028 | 50,2% | 3.837 | 3.033 | 26,8% | (2.909) | (325) | 760,1% | 10.714 | 8.283 | 26,3% |
Revenue from the North America business area, which amounted to €2.13 million in the first three months of 2026 and €0.55 million in the first three months of 2025, quadrupled. This increase is primarily linked to an order for electronic boards in the aerospace sector received in 2025, which was fully delivered during the first quarter of 2026.
The Europe business area also saw a significant increase of over 50%, rising from €5.03 million in the first quarter of 2025 to €7.55 million in the first quarter of 2026. This trend also reflects the increase in intercompany sales, partly due to greater operational integration among Group companies. Excluding intersegment revenues, the increase driven by sales in Germany was 17.6%.
Finally, the Asia business area showed an increase of 29.8%, rising from €3.03 million to €3.94 million, primarily due to an increase in orders from long-standing customers, which led to an 11.9% rise in third-party revenue, but also due to higher intra-group revenue following the new vertical integration policy that the Group has begun to implement.
Revenues by customer geographical area
The following table shows the geographical breakdown of revenues based on customer location:
| (€'000) | Q1 2026 | % | Q1 2025 | % | % change |
|---|---|---|---|---|---|
| BREAKDOWN BY GEOGRAPHIC AREA | |||||
| European Union | 5.504 | 51,4% | 4.030 | 48,7% | 36,6% |
| United States | 1.741 | 16,2% | 541 | 6,5% | 221,8% |
| Japan | 3.393 | 31,7% | 3.019 | 36,4% | 12,4% |
| Other | 76 | 0,7% | 693 | 8,4% | -89,0% |
| TOTAL SALES AND SERVICE REVENUES | 10.714 | 100,0% | 8.283 | 100,0% | 29,3% |
With reference to the customer's revenue by geographic region shown in the table, revenue from the European Union increased by 36.6%; its share of total revenue stands at 51.4%, keeping Europe in first place in terms of revenue.
Revenues in the Japanese region increased by 12.4% compared to the first quarter of 2025 and account for 31.7% of total revenue, a figure that keeps Japan in second place in terms of relative weight.
As for revenue in the U.S. region, again based on customer location, revenue more than doubled (+221.8%), and the region's share of total revenue for the first three months of 2026 was 16.2%.
The other geographic regions account for the remaining 0.7% of total revenue, with a decrease both in absolute terms and as a percentage compared to the first three months of 2025.
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
eurotech
D – Costs of raw & ancillary materials and consumables used
Costs of raw & ancillary materials and consumables used, which are closely related to turnover, show an increase during the periods under review that was slightly greater than proportional to revenue, rising from €4.18 million in the first three months of 2025 to €5.44 million in the first three months of 2026. During the period under review, therefore, there was a change of €1.27 million, equal to 30.4%.
The proportion of revenue accounted for by the consumption of raw materials, ancillary materials, and consumables was 50.8% in the first three months of 2026, compared to 50.4% in the first three months of 2025. Due to the product mix sold and, in part, to ongoing efficiency improvements in material procurement, margins remained essentially unchanged despite price pressures on certain electronic components.
E – Costs for services
Service costs decreased by €0.47 million in the quarters under comparison, a 15.5% drop, falling from €3.02 million to €2.55 million, with an improvement in the ratio to revenue, due to the increase in service costs, which fell from 36.5% in the first three months of 2025 to 23.8% in the first three months of 2026.
This decrease in service costs is related to the tail end of cost reductions initiated in Europe between late 2024 and early 2025, as well as to the reorganization that took place in the U.S. and the U.K. between late 2024 and mid-2025. The group also continued, to the extent possible in accordance with the defined plan, to make investments, particularly in the IoT software platforms business line for cross-sector applications across various industrial sectors, as well as in developments related to the Edge Computer and Server product lines. These investments are intended to support the research and development area in keeping the product portfolio in line with technological innovations in the sector, including those proposed by electronic component manufacturers
F – Payroll costs
Personnel costs in the reporting period decreased from €5.58 million (67.3 percent of revenues) to €4.57 million (42.6 percent of revenues) and amounted to €4.43 million net of non-recurring costs. The decrease of €1.01 million is due to the rationalization of resources within the Group through a new reorganization carried out in February 2025 in the US and cost reduction measures implemented in other geographical areas. Salaries include €264 thousand for the pro-rata portion of the cost relating to the existing Performance Share and Retention Plans (in the first quarter of 2025, the amount recognized as cost was €110 thousand).
At the end of March 2026, the number of employees decreased by 14 compared to the end of 2025, while it was 39 lower than in March 2025.
The table below, shows the number of employees in the Group:
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
eurotech
| EMPLOYEES | Average 2026 | at March 31, 2026 | Average at December 31, 2025 at March 31, 2025 | ||
|---|---|---|---|---|---|
| 2025 | 2025 | 2025 | |||
| Manager | 7,5 | 7 | 9,5 | 8 | 10 |
| Clerical workers | 211,0 | 208 | 225,3 | 218 | 236 |
| Line workers | 89,7 | 88 | 93,3 | 91 | 96 |
| TOTAL | 308,2 | 303 | 328,1 | 317 | 342 |
G - Other provisions and costs
As of March 31, 2026, the item includes an allowance for doubtful accounts in the amount of €8 thousand (€24 thousand also in the first three months of 2025) and refers to provisions made to address any non-collectable receivables from customers.
The ratio of other provisions and other costs on revenues stood at $1.4\%$ , compared with $2.2\%$ in the first three months of 2025; the decrease in absolute terms was €26,000.
H - Other revenues
Other revenues show a decrease from €1,150 thousand in the first three months of 2025 to €416 thousand in the first three months of 2026.
Other revenues include capitalization of development costs related to new system solutions and highly integrated standard modules in the amount of €320 thousand (€888 thousand in the first three months of 2025) and miscellaneous income in the amount of €96 thousand (€162 thousand in the first three months of 2025) and €100 thousand for operating grants in 2025 only.
I - Depreciation, amortisation and impairment
Depreciation and amortization decreased by €76 thousand, from €1,113 thousand in the first three months of 2025 to €1,037 thousand in the first three months of 2026. The item includes depreciation and amortization in application of IFRS16 amounting to €216 thousand (€268 thousand in 2025). In addition, in both the first quarter of 2025 and 2026, the item includes amortization of intangible assets with a finite useful life (customer list and trademarks) identified as a result of InoNet's "purchase price allocation (PPA)" in the amount of €73 thousand.
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
eurotech
J - Financial income and expenses
Financial expenses decreased by €65 thousands compared to the period under comparison. There was not only a decrease in foreign exchange losses but lower interest expenses on loans due to the reduction in debt.
Finance income, again as a result of foreign exchange management, increased by €0.16 million from €0.24 million in the first three months of 2025 to €0.40 million in the first three months of 2026.
The absolute value and impact on revenues of the main components of financial income and expenses are as follows:
- foreign exchange losses: €0.25 million as percent, compared to €0.27 million as 5
- foreign exchange gains: €0.34 million as percent, compared to €0.23 million as 5
- miscellaneous interest expense: €142 thousand as 6 percent, compared to an amount of €207 thousand as percent.
- other financial income includes €50 thousand as 6 (only in 2026) relate entirely to proceeds from the sale of unexercised rights during a capital increase, following the initial exercise period for preemptive rights.
| €'000 | Q1 2026 | Q1 2025 | change % |
|---|---|---|---|
| Exchange-rate losses | 250 | 268 | -6,7% |
| Interest expenses | 138 | 185 | -25,4% |
| Interest expenses on lease liabilities | 17 | 22 | -22,7% |
| Other finance expenses | 31 | 26 | 19,2% |
| Financial charges | 436 | 501 | -13,0% |
| Exchange-rate gains | 336 | 231 | 45,5% |
| Interest income | 13 | 1 | n.s. |
| Gain on derivatives | 2 | 11 | -81,8% |
| Other finance income | 50 | - | n/a |
| Financial incomes | 401 | 243 | 65,0% |
| Net financial income | (35) | (258) | -86,4% |
| % impact on sales | -0,3% | -3,1% |
K-Income taxes
Income taxes as at 31 March 2026 were globally positive for €192 thousand (of which €113 thousand for current taxes, €37 thousand for current tax refunds and €268 thousand for net deferred tax assets), compared to the positive impact of €98 thousand as at 31 March 2025 (of which €6 thousand for
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
@eurotech
current taxes, €45 thousand for net deferred tax assets and €59 thousand for net deferred tax assets), recording a positive change of €94 thousand.
L – Non-current assets
The net decrease in non-current assets compared to 31 December 2025 amounts to €261 thousand and is primarily due to changes in property, plant, and equipment and intangible assets, which together had a negative impact of €418 thousand, partially offset by an increase in deferred tax assets of €154 thousand.
Net investments in property, plant, and equipment and intangible assets amounted to €0.46 million and were partially offset by depreciation and amortization of €1.04 million.
a – Intangible assets
The table below shows the breakdown and main changes in intangible assets during the period:
| (€ '000) | ||||||
|---|---|---|---|---|---|---|
| DEVELOPMENT COSTS | GOODWILL | SOFTWARE TRADEMARKS PATENTS | ASSETS UNDER CONSTRUCTION & ADVANCES | OTHER INTANGIBLE ASSETS | TOTAL INTANGIBLE ASSETS | |
| OPENING BALANCE (A) | 6.832 | 39.226 | 7.605 | 924 | 1.351 | 55.938 |
| Changes as at March 31, 2026 | ||||||
| - Purchases | 4 | - | 3 | 302 | - | 309 |
| - Amortisation and impairment in period (-) | (553) | - | (73) | - | (28) | (654) |
| - Other changes | 2 | 134 | 23 | (1) | - | 158 |
| Total changes (B) | (548) | 134 | (47) | 301 | (28) | (188) |
| CLOSING BALANCE (A+B) | 6.284 | 39.360 | 7.558 | 1.225 | 1.323 | 55.750 |
The carrying value of goodwill and trademarks with an indefinite useful life allocated to each of the cash-generating units is as follows:
| (€ '000) | at March 31, 2026 | at December 31, 2025 | ||
|---|---|---|---|---|
| Cash generating units | Goodwill | Trademark with an indefinite useful life | Goodwill | Trademark with an indefinite useful life |
| Advanet Inc. | 30.409 | 5.752 | 30.293 | 5.752 |
| InoNet Computer GmbH | 5.221 | - | 5.221 | - |
| Group CGU Eurotech | 3.730 | 3.712 | ||
| TOTAL | 39.360 | 5.752 | 39.226 | 5.752 |
b – Property, plant and equipment
The table below shows their breakdown and main changes in property, plant and equipment assets during the period:
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
eurotech
| (€ '000) | |||||||
|---|---|---|---|---|---|---|---|
| LAND AND BUILDINGS | PLANT AND MACHINERY | INDUSTRIAL & COMMERCIAL EQUIPMENT | OTHER ASSETS | ASSETS UNDER CONSTRUCTION & ADVANCES | RIGHT OF USE ASSETS | TOTAL PROPERTY, PLANT & EQUIPMENT | |
| OPENING BALANCE (A) | 1.459 | 1.477 | 478 | 276 | - | 3.207 | 6.897 |
| Changes as at March 31, 2026 | |||||||
| - Purchases | - | - | 111 | 42 | - | - | 153 |
| - Disposals | - | - | - | (1) | - | (9) | (10) |
| - Amortisation and impairment in period (-) | (15) | (63) | (51) | (25) | - | (229) | (383) |
| - Other changes | - | 5 | 1 | - | - | 4 | 10 |
| Total changes (B) | (15) | (58) | 61 | 16 | - | (234) | (230) |
| CLOSING BALANCE (A+B) | 1.444 | 1.419 | 539 | 292 | - | 2.973 | 6.667 |
M – Net working capital
Net working capital increased by €1.85 million, from €9.73 million as at 31 December 31 2025 to €11.58 million as at 31 6 ; this performance is due to the different trend of the collection and payment flows, as is usually the case over the various quarters.
Current assets increased by €2.83 million, primarily due to a €3.92 million increase in inventory and a €2.13 million decrease in accounts receivable, offset only partially by a €1.04 million increase in income tax receivables and other current assets.
The increase in current liabilities is less than the increase in current assets and amounts to €0.98 million, consisting mainly of an increase in accounts payable of €1.60 million and an increase in income tax liabilities and other current liabilities totaling €0.61 million.
N – Net financial position
Consolidated net financial debt as of 31 March 2026, amounted to €9.99 million, compared to €16.80 million as of 31 December 2025. The figures shown include financial liabilities for right-of-use leases, in accordance with IFRS 16, amounting to €3.45 million; when subtracted from net financial debt, this results in pre-IFRS 16 debt of €6.54 million.
With regard to cash and cash equivalents, which amount to €10.47 million, during the period under review (as can be seen from the cash flow statement), there was a use of operating cash of €2.62 million; €0.44 million was used for investments, and €7.30 million resulted from financing activities (of which €3.58 million for net repayment of loans and interest, and €10.89 million from payments received on account of future capital increases from the majority shareholder and from payments made by shareholders related to the capital increase).
The trend in operating cash flows results from the use of liquidity to support current operations; due to expected trends, particularly the reduction in inventory values, an improvement is anticipated in the coming quarters.
The Parent Company formalized a "covenant holiday" with the relevant bank and consequently reclassified the related loan, which as of 31 December 2025 had been entirely classified as short-term, based on its natural maturity.
See also the cash flow statement on page 19.
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
@eurotech
Medium/long-term borrowings include the principal amounts of mortgages and finance leases maturing in more than 12 months.
O – Changes in shareholders' equity
Share capital, as of 31 March 2026, consists of 59,625,545 ordinary shares, all of which are fully subscribed and paid in, with no par value. On 25 February 2026, a capital increase was completed, bringing the share capital to €14.91 million.
The Issuer’s legal reserve balance as of 31 March 2026, amounts to €1.78 million.
The share premium reserve, relating entirely to the Parent Company, is recorded for a total amount of €150.36 million following the increase of €12.24 million during the period resulting from the capital increase and the conversion of €17.49 million into capital and share premium reserve.
The negative translation reserve, amounting to €5.70 million, is generated by the inclusion in the interim management report of the financial statements of the U.S. subsidiaries Eurotech Inc. and E-Tech USA Inc., the U.K. subsidiary Eurotech Ltd., and the Japanese subsidiary Advanet Inc.
The “Other Reserves” item is negative by €99.13 million and consists of the Parent Company’s extraordinary reserve, comprising accumulated losses and certain provisions for undistributed profits from prior years, as well as other reserves of various origins. The change for the year is attributable to the allocation of the 2025 net income, the recognition of Eurotech’s performance share plans for the period described in the relevant section of the 2025 Consolidated Financial Statements, the payment of €2.00 million into a future capital increase account by the relative majority shareholder Emera S.r.l., as well as the use of the reserve to increase share capital and the share premium reserve, net of costs incurred for the capital increase itself.
The cash flow hedge reserve, which includes cash flow hedging transactions in accordance with IAS 39, is positive by €4 thousand and decreased by €2 thousand before tax, which was not recognized due to the lack of the necessary conditions.
The foreign exchange reserve, in which foreign exchange differences on intra-group loans in foreign currency that form part of a net investment in a foreign subsidiary are recognized in accordance with IAS 21, is positive by €2.29 thousand and increased by €0.46 million before the related tax effect, which has not yet been recognized due to the lack of the necessary conditions.
The parent company Eurotech S.p.A. held 135,618 treasury shares at the end of the period, a decrease of 118,000 shares due to their distribution following the conclusion of the “Eurotech S.p.A. 2022 Incentive Plan.”
P – Significant events in the quarter
The main events of the quarter were announced in press releases, the full text of which can be found on the Group's website www.eurotech.com at https://www.eurotech.com/it/category/news-it/ in the Investors / News section:
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
eurotech
01/27/2026 The Board of Directors of Eurotech S.p.A. approves the 2026-2030 Business Plan, resolves to carry out a rights offering, and sets the offering schedule
01/29/2026 Rights Offering: the notice of the rights offering is filed with the Udine Companies Registry and the offering circular with CONSOB
02/25/2026 The rights offering is successfully completed for the full amount of €17.5 million
03/04/2025 The Board of Directors expresses its views on the composition of the new Board of Directors, which the next Shareholders' Meeting will be called upon to appoint
03/11/2026 Eurotech gateways and software selection now available on DigiKey
Q – Events after 31 March 2026
The main events following the end of the quarter were announced in the press releases listed below (the full text is available on the Group's website www.eurotech.com (Investors / News section):
04/01/2026 BAE Systems names Eurotech a ‘Partner 2 Win Gold Tier’
04/14/2026 Eurotech has been recognized as a leading contributor to open-source IoT and edge computing in PAC's 2025 'Vendor Landscape'
04/16/2026 Eurotech announces the availability of the ReliaCOR 55-20 and 61-11 models: Edge AI servers equipped with NVIDIA Blackwell GPUs, designed for industrial and smart spaces applications
04/29/2026 Eurotech: Resolutions adopted on April 29, 2026, by the ordinary and extraordinary shareholders' meeting and by the newly appointed Board of Directors
There are no significant events after 31 March.
R – Risks and uncertainties
Please refer to the paragraphs "Main risks and uncertainties to which the Group is exposed" and "Financial risk management: objectives and criteria" in the 2025 Consolidated Financial Statements, in which the risks to which the Eurotech Group is exposed are explained.
S – Other information
We also specify that:
- group intercompany transactions take place at market prices and are eliminated during the consolidation process;
- group companies' related-party transactions form part of the normal course of business and are settled under arm's length conditions;
- pursuant to CONSOB communication no. DEM/6064296 of 28 July 2006, there were no atypical and/or unusual transactions carried out in the first quarter of 2024;
- as at 31 March 2026 the company held 135,618 treasury shares for a total value of €304 thousand. The changes were as follows:
CONSOLIDATED MANAGEMENT STATEMENT AS AT 31 MARCH 2026
eurotech
| No. of shares | Face value of a share (Thousand of Euro) | % share capital | Carrying value (Thousand of Euro) | Average unit value | |
|---|---|---|---|---|---|
| Status as at 1 January 2026 | 253.606 | 63 | 0,71% | 568 | 2,24 |
| Purchases | 12 | - | 0,00% | - | - |
| Sales | - | - | 0,00% | - | - |
| Assignment-Performance share Plan | (118.000) | (30) | -0,33% | (264) | 2,24 |
| Status as at 31 March 2026 | 135.618 | 33 | 0,38% | 304 | 2,24 |
- pursuant to CONSOB Communication no. DEM/11070007 of 5 August 2011, relating to disclosure in financial reports of the exposure of listed companies to sovereign debt, note that the Group does not hold sovereign debt securities;
- as regards the requirements of Article 150, paragraph 1, of Italian Legislative Decree no. 58 of 24 February 1998, no members of the Board of Directors have executed transactions with Group companies in situations of potential conflict of interest;
- pursuant to Article 3 of CONSOB Resolution no. 18079 of 20 January 2012, Eurotech adopted the simplification procedure set out in Articles 70, paragraph 8, and 71, paragraph 1-bis, of the Regulation adopted by CONSOB with Resolution no. 11971 of 14 May 1999 as amended and supplemented. Therefore, it opts to derogate from the requirement to publish the information documents set out in Attachment 3B of this CONSOB Regulation for significant transactions such as mergers, spin-offs, capital increases via contributions in kind, acquisitions and sales.
Amaro, 14 May 2026
On behalf of the Board of Directors
Signed by Mr. Massimo Milan
Chief Executive Officer
DICHIARAZIONE DEL DIRIGENTE PREPOSTO ALLA REDAZIONE DEI DOCUMENTI CONTABILI SOCIETARI
@eurotech
Statement of the Financial Reporting Manager
Amaro, 14 May 2026
STATEMENT
PURSUANT TO ART. 154-BIS, PARAGRAPH 2 – PART IV, TITLE III, CHAPTER II, SECTION V-BIS OF ITALIAN LEGISLATIVE DECREE NO. 58 OF 24 FEBRUARY 1998: “CONSOLIDATED ACT ON MEASURES RELATING TO FINANCIAL INTERMEDIATION PURSUANT TO ARTICLES 8 AND 21 OF ITALIAN LAW NO. 52 OF 6 FEBRUARY 1996”
I, Sandro Barazza,
Financial Reporting Manager of Eurotech S.p.A., with reference to the Consolidated Interim Management Statement as at 31 March 2026 approved by the company's Board of Directors on 14 May 2026,
STATE
in compliance with the matters set forth under Article 154-bis, part IV, title III, chapter II, section V-bis of Italian Legislative Decree no. 58 of 24 February 1998, to the best of my knowledge, the Consolidated Interim Management Statement as at 31 March 2026 corresponds to the accounting entries.
The Financial Reporting Manager
Signed by Sandro Barazza
eurotech.com