Eurotech S.p.a.MIL: ETH

Earnings Call - FY25

· Issued by Eurotech S.p.a.
‌CONFERENCE CALL

F Y 2 0 2 5 F I N A N C I A L R E S U LT S



‌index

Today's Speakers

Financial updates

Outlook and key takeaways QCA



#2



‌today's speakers

SANDRO

Massimo Milan

Group CEO

Sandro Barazza

Group CFO



#3



‌key facts

2025 marked the beginning of Eurotech's operational transformation.

Strong improvement in the second half of the year, with positive adjusted EBITDA in H2.

Lower break-even driven by cost discipline and organizational actions.

SANDRO

€17.5M capital increase strengthened the balance sheet and provides resources to support the transformation.

Strategic repositioning toward Industrial Edge AI infrastructure,

focus on mission-critical applications and high-value vertical markets.

Eurotech enters 2026 with a solid foundation for recovery and growth.



#4





‌

#5

financial

update

FY 2025

‌FY 2025 financial highlights Revenues declined 6.4% YoY (4.9% at constant exchange rates) to €55.4m, with the decrease entirely attributable to the contraction

of the traditional Embedded business.

EBITDA FY 2025: € -3.1m

(+38.1% YoY compared to € -5.0m in FY 2024).

EBITDA 2H 2025: € 2.2m

compared to € -5.3m for the 1H 2025.

EBIT: € -8,5m

(+73.5% YoY compared to € -32.3m for the FY 2024).

Group net result: € -G.3m

(+74.4% YoY compared to € -36.2m in the FY 2024).

Net Debt: € 16.8m

(€ 3.6m better than FY 2024).













#6





‌revenue performance FY 2025

trend inversion in H2 but year still impacted by weak H1

#Revenues impacted by Embedded slowdown due to US business and weak industrial demand, particularly in Germany.

#Edge AIoT business further strengthened its strategic role, accounting for approximately 60% of the Group's revenues.

#At constant exchange rates, the revenue decrease would have been more limited

at -4.9%.

All values in € million

59.1

0.2

-0.9

55.4

-3.1



FY 24 FX



Delta Edge AIoT



Delta Embedded

FY 25

#7



‌Europe remains the Group's leading market

revenues breakdown by end-customer location

JP

29.1

%

US

other

7.8

%

12M

2024

13.5

%

JP

49.5

%

EU

31.7

%

US

other



7.4

%

12M

2025

10.2

%

50.8

%

EU

Regional performance shows differentiated dynamics across markets.

Europe remained the Group's largest market, showing a clear acceleration in the second half of the year.

Japan remained stable in revenues, maintaining its position as the second largest market and slightly increasing its contribution to Group revenues.

The US market reflects an ongoing portfolio transition, with the traditional Embedded business experiencing a temporary contraction.

Percentages total might not sum up to 100 because of rounding













#8



‌strong H2 performance

61.2% of the revenues and €2.8M EBITDA ADJ (6.6% of the revenues)

2025 performance driven by stronger H2

Weak H1: due to lower order intake in late 2024 and softness in the industrial sector (Europe, US).

H2: progressive commercial recovery supported by organizational actions and operational efficiency improvements.

H2 revenues represented 61.2% of full-year revenues, with a positive Adj. EBITDA margin of 6.6%.

In H2 the operational turnaround has started.



8.3

13.2

-3.6

13.7

20.2

0.3 2.5



H1 - Revenues

-0.4

-

H1 - EBITDA ADJ

H2 - Revenues

H2 - EBITDA ADJ



Q1 Q2 Q3 Q4













#9

‌opex net of not recurrent cost

lower break-even entering 2026

6.0M€ cost reduction in FY 25 vs FY24 net of forex effects

and not recurrent costs:

Organizational simplification and cost base optimization.

Improved operational discipline and tighter expense control.

Implemented cross-country synergies.

36.9

-2.0

-2.6

0.1

30.9

-1.5



OPEX ADJ FX 2024 Act

FX 2025

US

reorganization

Europe Salary

reorganization

Europe Other opex savings

Japan + Germany savings

OPEX ADJ FX 2025 Act

FX 2025



#10



‌EBITDA improvement driven by costs reduction

-4,958

5,966

All values in € thousand

-1,062 -1,272

1,250

-1,785

-3,057

-156 -3,864

-1,432

-880

EBITDA

Non

Fx rate

EBITDA ADJ

Lower

(Lower)

Opex

Other

EBITDA ADJ

Non

EBITDA

FY 2024 Act

recurring

effect

FY 2024 Act

Volume

Better GM

(Increase)

Revenues

FX 2025 Act

recurrent

FY 2025 Act

FX 2024

costs

FX 2025

Decrease

FX 2025

costs

FX 2024

#11



‌balance sheet continues to improve



All values in € million

capital injection

6.9

-0.7

-16.8

-20.4

0.2

-0.6

FY

24

-2.2

FX Cashflow Cashflow generated in for

operations investments

Net future

Capital injection

Cashflow

for financial assets

FY

25



NFP improved by €3.6M, supported by key shareholders

NWC reduced by €5M YoY, driven by inventory cash release

Receivables increased mainly due to higher sales volumes in H2

14.7

-0.8

2.3

-0.5

9.7

-4.3

-1.5

FY

24

FX

Change Change Change in in trade in other inventory receivables current

assets

Change

in other current liabilities

FY

25

#12





‌

#13

outlook

& key takeaways

‌business outlook

short-term market conditions remain mixed,

with gradual improvement expected during the year

Q1 2026 expected to improve vs. Q1 2025 in both revenues and profitability, still reflecting weak overall profitability.

Q2 expected to show further improvement vs. Q1 and

Q2 2025.

Performance influenced by ongoing supply disruption

in memory components (price and lead time).



#14





‌long-term outlook

2026 2027

2028

FROM RECOVERY

TO STRUCTURAL PROFITABILITY

  • Execution and mix improvement.

  • Cost discipline.

  • Focus on value, not volume.

  • Expected positive EBITDA.

  • Time-to-market of 18-24 months, with full impact expected from 2026 onward.

  • Expansion of Eurotech's integrated

    ecosystem offering.

  • Strengthening of partnerships with

    system integrators.

  • Progressive increase in volumes,

    supported by the maturation of strategic partnerships.

  • Expected positive EBIT.

    Expected results 2028:

    ~€80M revenues, scaling

    to ~€100M by 2030.

    #15

    ‌key takeaways

    we are building solid foundations for sustainable recovery

    and long-term growth

    Market environment

    Global macroeconomic and geopolitical

    environment remains volatile.

    Industrial slowdown in Europe, particularly

    Germany.

    Growing demand for Edge AI and integrated

    solutions.

    Supply chain volatility in memory

    components and procurement cycles.

    €17.5M capital increase

    successfully completed supported

    by key shareholder

    • Stronger balance sheet

    • Resources to support strategic

      transformation

      #16



      ‌key takeaways

      from recovery to growth: building solid, long-term value

      EUROTECH STRATEGIC REPOSITIONING

      Building a platform for future growth.

      • Industrial Edge AI infrastructure.

      • Integrated Systems C Solutions: hardware,

        software, services.

        Transformation underway

        FY2025 marked a year of stabilization.

        Improvement in H2 operational

        performance.

        Entering 2026 with:

    • Stronger financial structure.

    • Lower break-even level.

    • Clear strategic repositioning.

    • Focus on mission-critical applications.

      Priority markets: Industrial, Transportation, Energy C Grids, Aerospace C Defense.

      Operational discipline

    • Cost management and operational optimization.

    • Industrial and commercial synergies across the Group.

    • Focus on strategic key accounts.

#17





‌

#18

Q&A

‌disclaimer

This presentation has been prepared by Eurotech S.p.A. (or "Eurotech") and has to be read in conjunction with its oral presentation.

The information contained in this presentation does nor purport to be comprehensive. Neither Eurotech nor any of its officers, employees, advisers or agents accepts any responsibility for/or makes any representation or warranty, express or implied, as to the truth, fullness, accuracy or completeness of the information in this presentation (or whether any information has been omitted from the presentation) or any other information relating to Eurotech, its subsidiaries or associated companies, whether written, oral or in a visual or electric form, transmitted or made available.

This document is confidential and is being provided to you solely for your information and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose.

The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

This document is directed only at relevant persons. Other persons should not act or rely on this document or any of its contents.

No reliance may be placed for any purposes whatsoever on the information contained in this document or any other material discussed during this presentation, or on its completeness, accuracy or fairness.

The information in this document and any other material discussed at this presentation is subject to verification, completion and change.

The information and opinions contained in this document are provided as at the date of the presentation and are subject to change without notice. Some of the information is still in draft form and will only be finalized.

By attending the presentation you agree to be bound by the foregoing terms. Trademarks or Registered Trademarks are the property of their respective owners.





‌

#20

appendix



‌consolidated profit and loss account

(€ '000)

Sales revenue

FY 2025 (b)

55,377

of which

non %

recurrent

100.0%

FY 2024 (a)

59,133

of which

non %

recurrent

100.0%

change (b-a)

amount %

(3,756) -6.4%

Cost of material

(28,276)

-51.1%

(29,144)

-49.3%

(868)

-3.0%

Gross profit

27,101

48.9%

29,989

50.7%

(2,888)

-9.6%

Services costs

(10,426)

(607)

-18.8%

(12,921)

(659)

-21.9%

(2,495)

-19.3%

Lease & hire costs

(670)

-1.2%

(894)

-1.5%

(224)

-25.1%

Payroll costs

(20,903)

(1,178)

-37.7%

(23,784)

(437)

-40.2%

(2,881)

-12.1%

Other provisions and costs

(721)

-1.3%

(985)

(154)

-1.7%

(264)

-26.8%

Other revenues

2,562

4.6%

3,637

6.2%

(1,075)

-29.6%

EBITDA

(3,057)

(1,785)

-5.5%

(4,958)

(1,250)

-8.4%

1,901

38.3%

Depreciation & Amortization

(5,212)

-9.4%

(4,446)

-7.5%

766

17.2%

Asset impairment

(282)

-0.5%

(22,855)

-38.7%

(22,573)

-98.8%

EBIT

(8,551)

(1,785)

-15.4%

(32,259)

(1,250)

-54.6%

23,708

73.5%

Finance expense

(1,692)

-3.1%

(2,597)

-4.4%

(905)

-34.8%

Finance income

1,054

1.9%

2,241

3.8%

(1,187)

-53.0%

Profit before tax

(9,189)

(1,785)

-16.6%

(32,615)

(1,250)

-55.2%

23,426

71.8%

Income tax

(83)

-0.1%

(3,540)

-6.0%

(3,457)

-97.7%

Net profit (loss) of continuing operations before minority interest

(9,272)

(1,785)

-16.7%

(36,155)

(1,250)

-61.1%

26,883

74.4%

Minority interest

-

0.0%

-

0.0%

- n/a

Profit (Losses) from company in

liquidation

0

0.0%

0

0.0%

0

n/a

Group net profit (loss) for period

(9,272)

(1,785)

-16.7%

(36,155)

(1,250)

-61.1%

26,883

74.4%

Base earnings per share

(0.251)

(1.025)

Diluted earnings per share

(0.251)

(1.025)













#21



‌consolidated statement of financial position

(€'000)

ASSETS

at December 31, 2025

at December 31, 2024

change

Intangible assets

55,938

62,425

( 6,487)

Property, Plant and equipment

6,897

8,367

( 1,470)

Investments in affiliate companies

4

4

-

Investments in other companies

137

152

( 15)

Deferred tax assets

1,973

1,647

326

Other non-current assets

416

480

( 64)

Total non-current assets

65,365

73,075

( 7,710)

Inventories

11,918

17,141

( 5,223)

Trade receivables

13,929

12,405

1,524

Income tax receivables

568

934

( 366)

Other current assets

1,361

1,498

( 137)

Other current financial assets

17

115

( 98)

Derivative instruments

4

29

( 25)

Cash & cash equivalents

6,455

6,170

285

Total current assets

34,252

38,292

( 4,040)

Total assets

99,617

111,367

( 11,750)

LIABILITIES AND EQUITY

Share capital

9,657

8,879

778

Reserves

( 85,792)

( 48,460)

( 37,332)

Share premium reserve

138,122

136,400

1,722

Net profit (loss) for period

( 9,272)

( 36,155)

26,883

Other reserves

( 95,064)

( 84,615)

( 10,449)

Group shareholders' equity

52,715

60,664

( 7,949)

Equity attributable to minority interest

-

-

-

Total shareholders' equity

52,715

60,664

( 7,949)

Medium-/long-term borrowing

11,574

17,551

( 5,977)

Employee benefit obligations

1,938

2,331

( 393)

Deferred tax liabilities

2,865

3,164

( 299)

Other non-current liabilities

775

1,200

( 425)

Total non-current liabilities

17,152

24,246

( 7,094)

Trade payables

9,384

9,040

344

Trade payables from affiliates companies

209

399

( 190)

Short-term borrowing

11,601

9,048

2,553

Income tax liabilities

879

953

( 74)

Other current liabilities

7,576

6,902

674

Business combination liabilities

101

115

( 14)

Total current liabilities

29,750

26,457

3,293

Total liabilities

46,902

50,703

( 3,801)

Total liabilities and equity

99,617

111,367

( 11,750)













#22



‌net financial position

(€'000)

Cash

A

at December 31, 2025

6,455

at December 31,

2024

6,170

Cash equivalents

B

-

-

Other current financial assets

C

21

144

Cash equivalent

D=A+B+C

6,476

6,314

Current financial debt

E

4,023

6,808

Current portion of non-current financial debt

F

7,578

2,240

Other current financial liabilities

G

101

115

Short-term financial position

H=E+F+G

11,702

9,163

Short-term net financial position

I=H-D

5,226

2,849

Non current financial debt

J

11,574

17,551

Debt instrument

K

-

-

Medium-/long-term net financial position

M=J+K+L

11,574

17,551

(NET FINANCIAL POSITION) NET DEBT ESMA

N=I+M

16,800

20,400













#23



‌net working capital

(€'000)

Inventories

31, 2025

(b)

11,918

31, 2024 Changes

(a) (b-a)

17,141 (5,223)

Trade receivables

13,929

12,405

1,524

Income tax receivables

568

934

(366)

Other current assets

1,361

1,498

(137)

Current assets

27,776

31,978

(4,202)

Trade payables

(9,384)

(9,040)

(344)

Trade payables from affiliates companies

(209)

(399) 190

Income tax liabilities

(879)

(953)

74

Other current liabilities

(7,576)

(6,902)

(674)

Current liabilities

(18,048)

(17,294)

(754)

Net working capital

9,728

14,684

(4,956)













#24

‌eurotech neXt

#25





‌eurotech neXt: executive summary

Focus on strategic vertical markets

Focus on integrated end-to-end solutions

Evolution of the ecosystem and go-to-market strategy

Transformation

Group synergies

C cost rationalization

Focus on strategic sectors - Transportation C Mobility, Aerospace C Defense, Energy C Grids, and Industrial - to strengthen specialization and leadership in sectors with the greatest potential and maximize the possibility of replicating solutions.

Development of integrated solutions based on the synergy between the three Competence Centers - Boards C Systems (H), Edge Solutions (H), and Software-AI, Cybersecurity C Services - to offer a customized, customer-oriented end-to-end approach.

Strengthen the direct network by focusing on strategic key accounts and completing the sale of solutions with up-selling of complementary services.

Consolidate relationships with system integrators and develop an ecosystem based on qualified software partners to provide an end-to-end solution.

The Group has embarked on a transformation process, with the appointment of a new Chief Executive Officer in June 2025, accompanied by a major investment plan in RsD to enhance competitiveness in the Group's strategic sectors.

Improvement in operational efficiency through measuresto contain structural costs and aenhancement of synergies between the various companies in the Group through centralized procurement and internalization of board and server production.

Financial support from shareholders

€17.5M capital increase successfully completed, confirming the market's strong appreciation of the Company and its 2026-2030 Business Plan.













#26



‌from market to customer

MARKET IS CHANGING:

FROM DIGITAL AI TO PHYSICAL AI

  1. AI moves from analytics to action

  2. Decisions move to the edge

  3. Systems, not models

  4. Trust becomes mandatory

Physical AI turns technology into operational risk or operational advantage. Value shifts to trusted, mission-critical systems designed to operate securely, reliably, and continuosly over long lifecycles.

WHY CUSTOMERS CHOOSE US

We transform advanced technologies into end-to-end trusted solutions by integrating hardware, software, and lifecycle services.

WE TURN INNOVATIVE TECHNOLOGIES INTO CUSTOMERS VALUE.













#27



‌integration between hardware, software & services, focusing on high-growth vertical markets

EDGE

SOLUTIONS

BOARD s

SYSTEMS

SOFTWARE - AI

SERVICES

(Cyber)



Focusing resources on vertical markets with the greatest growth and value potential.

Strengthen presence in core vertical markets through integrated and scalable vertical offerings.

Promote Eurotech as a platform for creating end-

to-end, interoperable, high-performance solutions.

Solid heritage of skills and experience in Research and Development, supported by an in-house team

of professionals fully dedicated.













#2

8

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