INTERIM REPORT ON OPERATIONS AT 31ST MARCH 2026
The Board of Directors today approved the consolidated financial statements as of March 31, 2026.
In the first quarter of 2026, the IRCE Group (hereinafter also the "Group") reported a profit of € 3.83 million.
Consolidated revenues amounted to € 105.76 million, an increase of 3.0% compared to € 102.71 million in the first quarter of 2025. This growth is attributable to the upward trend in copper prices (with the average LME price in Euro up 23.6% compared to the same period of 2025) which significantly supported margins and results, despite a contraction in sales volumes.
Market demand remained weak across both business lines, leading to a decline in volumes sold. The reduction in the winding wires segment is mainly linked to difficulties in end markets, such as automotive and household appliance manufacturers. More significant is the contraction in the cable segment, where traditional markets, such as construction and cabling, are showing a further slowdown.
Results are reported in the following table:
Consolidated income statement data (€/million) | 31 March 2026 Value | 31 March 2025 Value | Change Value |
Turnover1 | 105.76 | 102.71 | 3.05 |
Turnover without metal2 | 20.51 | 23.30 | (2.79) |
EBITDA3 | 9.53 | 5.28 | 4.25 |
EBIT | 6.76 | 3.54 | 3.22 |
Result before tax | 6.10 | 3.06 | 3.04 |
Group Net Result of the period | 3.83 | 1.95 | 1.88 |
Adjusted EBITDA4 | 10.15 | 5.75 | 4.40 |
Adjusted EBIT⁴ | 7.38 | 4.01 | 3.37 |
Consolidated statement of financial position data (€/milioni) | 31 March 2026 Value | 31 December 2025 Value | Change Value |
Net invested capital5 | 251.97 | 223.56 | 28.41 |
Shareholders' equity | 162.70 | 155.96 | 6.74 |
Net financial position6 | 89.27 | 67.60 | 21.67 |
1 The item "Turnover" represents the "Sales revenues" reported in the income statement.
2 Turnover without metal corresponds to the total turnover less the metal component.
3 EBITDA is a performance indicator the Group's Management uses to assess the operating performance of the company and is not an IFRS measure; IRCE S.p.A. calculates it by adding depreciation/amortisation, provisions and write-downs to EBIT.
4 Adjusted EBITDA and EBIT are calculated as the sum of EBITDA and EBIT and the gains/losses on copper and electricity derivatives transactions if realized (€ +0.62 million in first quarter 2026 and € +0.47 million in first quarter 2025). These are indicators the Group's Management uses to monitor and assess its own operating performance and are not IFRS measures. Given that the composition of these measures is not regulated by the reference accounting standards, the criterion used by the Group may not be consistent with that adopted by others and is therefore not comparable.
5 Net invested capital is the sum of net working capital, fixed assets, other receivables net of other payables, provisions for risks and charges and provisions for employee benefits.
6 The methods for measuring the net financial position as defined by Consob's Notice no. 5/21 of 29 April 2021, which incorporates the ESMA Guideline published on 4 March 2021.
The net financial position as of March 31, 2026, is € 89.27 million, up from € 67.60 million as of December 31, 2025. The increase is due to the growth in working capital, a consequence of the rise in copper prices.
Shareholders' equity increased by € 6.74 million compared to December 31, 2025, supported by the quarterly profit (€ 3.83 million) and a € 2.93 million improvement in the translation reserve, driven by the appreciation of the Brazilian Real against the Euro since the beginning of the year.
The Group's investments in the first quarter of 2026, amounting to €2.67 million, mainly refer to IRCE Sro in the Czech Republic.
The challenging situation of global economy, as highlighted in our last press release in March 2026, continues, now compounded by continued increases in energy and in general raw material costs. In this context, we confirm our forecast for weak market demand at current levels, with potential improvement only in the latter part of the year.
The Group continues its rationalisation efforts while pursuing medium to long-term growth strategy focusing on sectors linked to the energy transition. These initiatives are expected to support efficiency gains and margin improvements, with a significant impact on future results.
Output continues to increase at the Czech plant and in China we will soon begin installing the plants and the first machinery.
The manager responsible for preparing the company's financial reports, Mr Massimiliano Bacchini, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to our books and accounting records.
Imola, 15 May 2026
IRCE SPA
Contacts:Investor relator: Mr. Sepriano Gianfranco
Tel. + 39 0382 77535 e-mail: gianfranco.sepriano@irce-group.com
Head of Corporate Information: Ms. Elena Casadio
Tel. + 39 0542 661220 e-mail: elena.casadio@irce-group.com
The IRCE Group is a major player in the winding wires for electrical machinery and in the electrical cable sector. As of March 31, 2026, production was carried out in three plants in Italy and five abroad: Blackburn (UK), Joinville SC (Brazil), Ostrava (Czech Republic), Kochi (India), and Kierspe (Germany). The Group also includes four trading companies, three of which are abroad (in Germany, Spain and Switzerland) and two currently inactive companies (China and India). The Group employs 620 people globally.
Consolidated statement of financial position
(Thousand of Euro) | 2026 31 March | 2025 31 December |
ASSETS | ||
Non current assets | ||
Goodwill and other intangible assets | 51 | 55 |
Property, plant and machinery | 74,372 | 71,141 |
Equipments and other tangible assets | 1,946 | 2,056 |
Assets under constructions and advances | 24,556 | 26,728 |
Non current financial assets | 7 | 7 |
Deferred tax assets | 4,636 | 4,135 |
NON CURRENT ASSETS | 105,568 | 104,122 |
Current assets | ||
Inventories | 134,788 | 103,498 |
Trade receivables | 72,965 | 56,945 |
Tax receivables | 294 | 319 |
Other current assets | 4,321 | 3,699 |
Current financial assets | 909 | 295 |
Cash and cash equivalent | 8,603 | 17,952 |
CURRENT ASSETS | 221,880 | 182,708 |
TOTAL ASSETS | 327,448 | 286,830 |
(Thousand of Euro) | 2026 31 March | 2025 31 December |
EQUITY AND LIABILITIES Shareholders' equity Share capital Reserves Profit (loss) for the period | 13,737 145,443 3,827 | 13,739 136,349 6,176 |
Shareholders' equity attributable to shareholders of Parent company | 163,007 | 156,264 |
Shareholders equity attributable to Minority interests | (304) | (304) |
TOTAL SHAREHOLDERS' EQUITY | 162,703 | 155,960 |
Non current liabilities | ||
Non current financial liabilities | 36,380 | 39,482 |
Deferred tax liabilities | 240 | 251 |
Non current provisions for risks and charges | 1,016 | 558 |
Non current provisions for post employment obligation | 3,414 | 3,404 |
NON CURRENT LIABILITIES | 41,050 | 43,695 |
Current liabilities | ||
Current financial liabilities | 62,400 | 46,362 |
Trade payables | 48,590 | 30,397 |
Current tax payables | 3,031 | 1,217 |
(of which related parties) | 1,273 | 262 |
Social security contributions | 1,166 | 1,706 |
Other current liabilities | 8,396 | 7,381 |
Current provisions for risks and charges | 112 | 112 |
CURRENT LIABILITIES | 123,695 | 87,175 |
SHAREHOLDERS' EQUITY AND LIABILITIES | 327,448 | 286,830 |
Consolidated income statement
(Thousand of Euro) | 2026 31 March | 2025 31 March |
Sales revenues | 105,757 | 102,714 |
Other revenues and income | 439 | 666 |
TOTALE REVENUES AND INCOME | 106,196 | 103,380 |
Raw materials and consumables | (93,111) | (86,868) |
Change in inventories of work in progress and finished goods | 14,821 | 8,815 |
Cost for services | (10,543) | (11,103) |
Personnel costs | (7,370) | (8,593) |
Amortization /depreciation/write off tangible and intagible assets | (2,023) | (1,731) |
Provision and write downs | (741) | - |
Other operating costs | (466) | (356) |
EBIT | 6,763 | 3,544 |
Financial income / (charges) | (660) | (481) |
RESULT BEFORE TAX | 6,103 | 3,063 |
Income taxes | (2,276) | (1,110) |
NET RESULT FOR THE PERIOD | 3,827 | 1,953 |
Net result attributable to shareholders of the Parent Company | 3,827 | 1,953 |
EARNINGS/(LOSSES) PER SHARES | ||
- basic EPS for the period attributable to shareholders of the parent company | 0.1449 | 0.0738 |
- diluted EPS for the period attributable to shareholders of the parent company | 0.1449 | 0.0738 |