HY results impacted by restructuring costs, business operations on track

Ad hoc announcement pursuant to Art. 53 LR

• Revenue from sale of goods in local currency increased by 9.3%, reaching CHF 68.1 million (+6.2% in Swiss Francs vs. 1sthalf 2024/25)
• Gross profit margin declined to 53.9% from 56.0%
• Restructuring charges led to EBIT decrease from CHF 3.3 to CHF 1.3 million
• Net profit for the half-year declined by CHF 2.0 million, resulting in a net loss of CHF 0.4 million (first half year 2024/25: net profit of CHF 1.6 million).
• Solid equity ratio of 76.7% (78.4% on September 30, 2024)

Steinhausen, November 20, 2025 - During the first half of the 2025/26 financial year, Carlo Gavazzi experienced a rebound in the automation markets, partly offset by unfavorable currency conditions. The Group's revenue from sale of goods in local currency increased by 9.3% and bookings in local currency by 59.7%.

Bookings showed growth, driven by the strong rebound of our key strategic markets notably in the Americas and Asia. In Swiss Francs, they increased by 53.4% to CHF 68.1 million (first semester of the 2024/25 business year: CHF 44.4 million), resulting in a book-to-bill ratio of 1.00 on September 30, 2025.

In Swiss Francs, revenue from sale of goods increased by 6.2% to CHF 68.1 million (first half year 2024/25: CHF 64.1 million). Unfavorable currency developments resulted in a 4.9% reduction compared to the same period last year.

Revenue from sale of goods in local currency increased in Europe by 8.8%, in the Americas by 8.4% and in Asia-Pacific by 13.7%.

Gross profit increased by CHF 0.8 million to CHF 36.7 million (first half year 2024/25: CHF 35.9 million), while the gross profit margin declined to 53.9% (first half year 2024/25: 56.0%) due to an unfavorable change in the product mix.

Operating expenses increased by CHF 2.8 million to CHF 35.4 million compared to CHF 32.6 million in the comparable period of 2024/25, the main driver being a restructuring charge of CHF 2.6 million related to the progressive reduction of operations in Malta. As a result, operating profit (EBIT) decreased from CHF 3.3 million to CHF 1.3 million while the net profit for the half-year declined by CHF 2.0 million, resulting in a net loss of CHF 0.4 million (first half year 2024/25: net profit of CHF 1.6 million).

On September 30, 2025, the total equity attributable to owners of the Group amounted to CHF 130.3 million resulting in a healthy equity ratio of 76.7% (78.4 % on September 30, 2024).

In Europe, revenue from sale of goods grew by 8.8% in local currency compared to last year. This growth was supported by the industrial markets, particularly food & beverage and plastic & rubber industries. The EV charging market recovered positively compared to last year's performance.

Carlo Gavazzi Holding AG, Sumpfstrasse 3, CH-6312 Steinhausen, Phone +41 41 747 45 25, Fax +41 41 740 45 60

Distribution channels, especially middle-size distributors, performed better than the rest of the

business thanks to new dedicated programs.

Revenue from sale of goods in the Americas increased by 8.4% in local currency compared to the previous year. Due to the reduced inventory levels, sales in the distribution channel were at the same level as last year. On the other hand, industrial automation markets, in particular food & beverage, helped to boost the growth in the strategic industry segment.

In Asia-Pacific, revenue from sale of goods increased by 13.7% in local currency, mainly in China. Due to specific focus on the strategic markets, the Carlo Gavazzi Group grew more than in the same period of last year, whereas the distribution channel impacted negatively on the business performance.

The geographical share of revenue outside Europe was 39.0%, with revenue from sale of goods in the Americas and Asia-Pacific amounting to 22.9% and 16.1%, respectively.

Sensors experienced a growth of 11.1% compared with the same period of last year. A strong contribution to the growth was generated by capacitive sensors, thanks to the development of new customers in agriculture and food & beverage segments, as well as photoelectric sensors in new applications in access controls. New development initiatives in mobile equipment began to generate growth with inductive sensors.

Controls achieved overall growth of 4.7%, reflecting diverse regional dynamics across its key markets. Asia recorded double-digit expansion, particularly in China, supported by continued investments in industrial automation and electrification. The Americas also registered double-digit growth, mainly driven by major customers in the energy management segment. In Europe, growth reached 2.7%, with contrasting trends - a decline in Southern Europe was offset by strong performance in Northern Europe. Growth during the period was primarily generated in the energy and building efficiency segments and in EV charging applications, with the latter showing particularly strong development in China, Northern Europe, and the DACH area of Germany, Austria and Switzerland.

Revenue from sale of goods in Switches increased by 13.2%. The good performance was generated by the solid-state relays product range which increased by 22.9% compared to last year, with higher growth in China and Europe due to new OEMs mainly in food & beverage and due to distribution returning to normal inventory levels. Electromechanical relays and contactors also grew, while motor controls showed flat performance due to a switch of some HVAC (heating, ventilation, and air conditioning) customers to different technologies.

The Group's strategic focus on developing new products tailored to key target industries is expected to create solid opportunities in the medium and long-term. During the reporting period, a strategic decision was taken regarding the production site in Malta to transfer manufacturing operations to our facility in Mexico and China. This move reinforces our commitment to strengthening the strategically important Americas market.

Despite this outlook, economic and geopolitical uncertainties, as well as the risk of local downturns, are expected to remain challenging in the second half of the 2025/26 business year. While European markets are likely to experience a slower recovery, the Americas and China are expected to offer stronger opportunities from mid-2026 onward. These developments will be supported by our recent investments in new manufacturing facilities and R&D in both China and North America.

The complete interim report can be downloaded from https://http://www.carlogavazzi.com/en/investors/interim-report.html

Definitions for all APM are included on our website available at: https://www.carlogavazzi.com/en/investors/alternative-performance-measures.html

About Carlo Gavazzi:

Carlo Gavazzi is a publicly quoted international electronics group (SIX: GAV) with activities in the design and marketing of electronic control components for factory and building automation.

Please visit our website: https://www.carlogavazzi.com.

Phone +41 43 344 42 42

E-Mail rolf.schlaepfer@konsulenten.ch