PRESS RELEASE
Franchetti S.p.A. approves Consolidated Half-Year Report at June 30, 2025Value of production (+62%) and EBITDA (+68%) up significantly in H1
The investments and acquisitions made complete the end-to-end supply of services offered
H1 2025 Consolidated Highlights:
- Value of Production: Euro 5.7 million, +62% (H1 2024: Euro 3.5 million)
- EBITDA: Euro 1.8 million, +68% (H1 2024: Euro 1.0 million)
- Net result: profit of Euro 0.3 million (H1 2024: Euro 0.4 million)
- Net financial debt: Euro 0.3 million cash position (December 2024: Euro 1.1 million cash position)
- Backlog1 at 15.09.2025 of Euro 43.7 million with visibility to 2029.
Arzignano (VI), September 29, 2025 - The Board of Directors of Franchetti
S.p.A. (Ticker BIT: FCH), a company listed on the Euronext Growth Milan segment of the Italian Stock Exchange and parent of the multinational software development and engineering design Group of the same name, in a meeting chaired today by Paolo Franchetti, reviewed and the Consolidated Half-Year Financial Report at June 30, 2025, subject voluntarily to limited audit.Pag. 1
1 Included in the backlog with underlying signed contract.
Paolo Franchetti, Chairperson and CEO of Franchetti S.p.A., stated: "The half-year results reflect a clear strategic choice: to integrate, within the Group's offer, those technological services that complete its range and that today allow us to propose end-to-end solutions on a global scale - from diagnostics to therapy. We may therefore position ourselves as a partner of choice in flanking the infrastructure sector on their ongoing digital transformation process. The completion of our technology proposal required an additional push, but it has enabled us to take the final step to put in place an integrated and fully competitive platform.
The market, nationally and internationally, is experiencing ongoing exponential growth, characterized by the transformation of real assets into digital assets (with particular reference to existing structures). The Group's highly specialized know-how in this area is key to strengthening our competitive position and establishing trusted relationships with public and private partners.
Franchetti's path is also supported by a constant focus on innovation, which guides us in the development of new digital and predictive solutions that can meet increasingly complex and long-term needs.
We are capitalizing on the opportunities presented by the evolution of the industry, integrating the most recent acquisitions with a significant degree of determination, extending the portfolio of services offered, and geographically expanding the business proposition with projects of major strategic value.
The results achieved align with our development model, based on the ability to combine strategic vision and innovation with operational scalability in Italy and overseas.
The goal remains clear: to establish the Franchetti Group as a key player in the smart, safe and sustainable management of existing infrastructure, creating tangible and lasting value for all our stakeholders".
H1 2025 Key Financial Highlights
Income Statement
The Value of Production in H1 totaled Euro 5.7 million, up 62% from Euro 3.5 million in H1 2024, driven by significant volume growth.It comprises revenues from sales of Euro 2.4 million, up 36% on the same period of the previous year,and includes not only invoices issued but also the amount allocated for invoices to be issued, i.e. referring to work completed and delivered but for which authorization for issuance is awaited from the contracting party.
The value of the change in inventories is a further Value of Production item, which has almost doubled on the first half of 2024 - reaching Euro 3.1 million compared to Euro 1.7 million (+89%) - and refers to the increase in value of the expected revenue from orders not yet completed and delivered or the start of orders received thanks to the expansion of the digital offer, as a result of the new acquisitions and the new software and the progressive start of projects within the company's significant backlog. An insurance reimbursement to the parent company comprises a significant item within other operating income
Breaking down the value of production by geographic area:
Italy totals Euro 4.4 million (+59%), compared to Euro 2.8 million in the same period of 2024;
Brazil totaled Euro 1.3 million (+76% of the total), compared to Euro 0.7 million in H1 2024.
Both markets in which the Group is present confirmed their roles as a driver for growth, supported by the urgent need to complete works on the highly obsolescent infrastructure network. This factor will persist into the future and in Italy is largely decoupled from the National Recovery and Resilience
Plan (PNRR) funds. This thus provides the Group with a stable and advantageous position to tap into recurring business revenues.
Following the recognition of costs of production of Euro 3.9 million, increasing from Euro 2.5 million for the same period of the previous year, an increase mainly attributable to the rise in Service costs from external suppliers and higher personnel expense - who at June 30, 2025 numbered 128 between employees and collaborators - EBITDA was Euro 1.8 million. The EBITDA margin (calculated on the value of production) thus reaches 31%, improving on 30% in the first half of 2024, in which EBITDA was Euro 1.0 million. Overall, the Group reports a 68% increase in absolute value and an improvement of approx. 100 basis points in the EBITDA margin, confirming its growing operational efficiency and an ability to absorb the increased overheads.
The significant increase in the amortization of intangible assets, amounting to Euro 0.7 million compared to Euro 0.3 million in the comparable period, can be attributed to the significant capitalizations made in this area by both the parent company and the Brazilian subsidiary during the current and previous years. The most significant assets depreciated include internally developed software and deferred costs related to investments and M&A transactions. In view of these movements, EBIT was Euro 1.0 million, up 28% from the Euro 0.8 million in the first half of 2024.
The Net profit of Euro 0.3 million compared to Euro 0.4 million in the first half of 2024. The result was impacted by the share (66.67%) of the loss in the period of the associated company Strucinspect GmbH, amounting to Euro 255,121, which is consolidated at equity. The Directors consider the investment in Strucinspect GmbH to be strategic in nature in view of the potential of the Austrian start-up. The loss recognized is expected and typical of the start-up phase. It is therefore not considered as "long-term" in view of the development prospects and the business plan shared with management that presents concrete opportunities for growth and value creation in the near future.
Balance Sheet
Net Working Capital at the end of June 2025 was Euro 8.4 million, up from Euro 7.4 million at December 31, 2024. The increase is mainly attributable to the increase in inventories which totaled Euro 7.3 million, compared with Euro 4.2 million measured at estimated realizable value, in line with the accounting standards applied.Gross Capital Employed strengthened from Euro 17.6 million (December 31, 2024) to Euro 13.9 million. This movement reflects an increase of Euro 0.9 million related to intangible assets and 1.6 million concerning financial assets.
In terms of intangible assets, we highlight that the Group continues to invest strategically in developing and innovating its suite of proprietary software, with the overarching goal of preserving and enhancing its internal expertise. This strategy enables it to respond promptly to changes in the market, customer needs, and the increasing digitalization of physical assets.
The Group has therefore begun on a major program of industrial restructuring and modernization of its IT suite. This process is much more than a simple technical upgrade: it seeks to deliver a strategic software transformation. By adopting cloud-ready architectures, the goal is to substantially improve system performance, security, scalability, and integration capability. The process is designed to ensure that the Group's technology offerings remain aligned with the latest market standards at all times.
The Group is also investing in the development of innovative software solutions, based on high-tech prototypes. These are designed to meet concrete and lasting needs of customers and technological partners. One of the main areas of emphasis is Building Information Modeling (BIM), with projects geared toward creating digital twins of existing buildings and infrastructure. These tools allow high-fidelity three-dimensional models to