INTERIM REPORT ON OPERATIONS AS OF 30 SEPTEMBER 2025
The Board of Directors has approved today the consolidated financial statements as at September 30th2025.
The consolidated financial statements of IRCE Group (hereinafter also the "Group") for the first nine months of 2025 recorded a profit of € 5.22 million.
Consolidated turnover amounted to € 284.93 million, down by 6.9% compared to € 306.04 million recorded the first nine months of 2024. This reduction was mainly due to a decline in sales volumes, partially offset by higher copper prices: the average LME price in Euros for the first nine months of 2025 was 1.7% higher than in the corresponding period of 2024.
During the period, market demand for both Group's business lines remained weak, with low sales volumes also affected by the traditional August shutdown. In the winding wire sector, the decrease in sales was attributable to difficulties in end markets, such as automotive, household appliances, and electromechanical and electronic equipment, as well as the lower production of the Dutch subsidiary Smit Draad, which ceased operations in May 2025. The cable sector, which saw a more significant decline, was impacted by the contraction in demand in traditional markets, such as construction and industry.
Results are reported in the following table:
Consolidated income statement data (€/million) | 30 September 2025 Value | 30 September 2024 Value | Change Value |
Turnover1 | 284.93 | 306.04 | (21.11) |
Turnover without metal2 | 66.16 | 74.39 | (8.23) |
EBITDA3 | 14.24 | 18.64 | (4.40) |
EBIT | 9.57 | 12.75 | (3.18) |
Result before tax | 9.08 | 11.95 | (2.87) |
Group Net Result of the period | 5.22 | 7.11 | (1.89) |
Adjusted EBITDA4 | 15.17 | 19.34 | (4.17) |
Adjusted EBIT⁴ | 10.50 | 13.45 | (2.95) |
Consolidated statement of financial position data (€/million) | 30 September 2025 Value | 31 December 2024 Value | Change Value |
Net invested capital5 | 217.93 | 197.13 | 20.80 |
Shareholders' equity | 156.02 | 150.62 | 5.40 |
Net financial position6 | 61.91 | 46.51 | 15.40 |
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 (€ +0.93 million in the first 9 months of 2025 and € +0.70 million in the first 9 months of 2024). 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.
As at 30 September 2025, the net financial position amounted to € 61.91 million, up from € 46.51 million at 31 December 2024. This increase is primarily due to investments made during the period, amounting to €15.95 million, which concerned the subsidiary in Brazil and two new projects in the Czech Republic and China, and partly to the growth in working capital.
The increase in shareholders' equity of € 5.40 million compared to December 31, 2024, net of the dividend distributed (€ 1.59 million), is due to the profit for the period (€ 5.22 million) and to the positive change in the translation reserve of € 1.75 million, which benefited from the appreciation of the Brazilian real and the Czech koruna by 3% and 4%, respectively, since the beginning of the year.
The marked uncertainty regarding the overall economic outlook and the recovery timeframe, fuelled by trade wars and international conflicts, makes forecasting difficult. In this context, we confirm for 2025 a result in line with that achieved in 2024.
The rationalization process within the Group continues and, together with the medium- to long-term growth strategy, focused on sectors linked to the energy transition, will deliver greater efficiency and improved margins, with a positive impact on results in the coming years.
At the Czech Republic plant, testing of the installed machinery and approval processes are progressing. Meanwhile, construction of the new facility in China is scheduled for completion by the end of the year, with production expected to begin in the second half of 2026.
Regarding the closure of the Dutch subsidiary, all employment relationships were terminated in July, and the disposal of assets is underway.
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, 14 November 2025
IRCE SPA
Contacts:Investor relator: Mr. Sepriano Gianfranco
Tel. + 39 382 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 conductors for electrical machinery and in the electrical cable sector. As of September 30, 2025, 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 five trading companies, four of which are abroad (in Germany, Spain, Switzerland, and Poland) and two currently inactive companies (China and India). In May 2025, the Nijmegen (NL) plant ceased production. The Group employs 620 people globally.
Consolidated statement of financial position
(Thousand of Euro) | 2025 30 September | 2024 31 December |
ASSETS | ||
Non current assets | ||
Goodwill and other intangible assets | 51 | 50 |
Property, plant and machinery | 70,631 | 43,064 |
Equipments and other tangible assets | 1,747 | 1,731 |
Assets under constructions and advances | 25,542 | 41,609 |
Non current financial assets | 6 | 7 |
Deferred tax assets | 2,981 | 2,502 |
Other non current assets non financial | 413 | - |
NON CURRENT ASSETS | 101,371 | 88,963 |
Current assets | ||
Inventories | 113,401 | 94,345 |
Trade receivables | 56,484 | 54,083 |
Tax receivables | 186 | 114 |
Other current assets | 2,634 | 5,316 |
Current financial assets | 720 | 412 |
Cash and cash equivalent | 9,337 | 13,859 |
CURRENT ASSETS | 182,762 | 168,129 |
TOTAL ASSETS | 284,133 | 257,092 |
(Thousand of Euro) | 2025 30 September | 2024 31 December |
EQUITY AND LIABILITIES Shareholders' equity Share capital Reserves Profit (loss) for the period | 13,739 137,361 5,215 | 13,756 130,268 6,900 |
Shareholders' equity attributable to shareholders of Parent company | 156,315 | 150,924 |
Shareholders equity attributable to Minority interests | (298) | (308) |
TOTAL SHAREHOLDERS' EQUITY | 156,017 | 150,616 |
Non current liabilities | ||
Non current financial liabilities | 40,085 | 38,023 |
Deferred tax liabilities | 266 | 280 |
Non current provisions for risks and charges | 551 | 558 |
Non current provisions for post employment obligation | 3,441 | 3,685 |
NON CURRENT LIABILITIES | 44,343 | 42,546 |
Current liabilities | ||
Current financial liabilities | 31,878 | 22,757 |
Trade payables | 40,295 | 26,010 |
Current tax payables | 2,271 | 1,277 |
(of which related parties) | 1,545 | 644 |
Social security contributions | 1,379 | 2,013 |
Other current liabilities | 7,734 | 8,513 |
Current provisions for risks and charges | 216 | 3,360 |
CURRENT LIABILITIES | 83,773 | 63,930 |
SHAREHOLDERS' EQUITY AND LIABILITIES | 284,133 | 257,092 |
Consolidated income statement
(Thousand of Euro) | 2025 30 September | 2024 30 September |
Sales revenues | 284,926 | 306,043 |
Other revenues and income | 3,417 | 1,213 |
TOTALE REVENUES AND INCOME | 288,343 | 307,256 |
Raw materials and consumables | (226,213) | (242,827) |
Change in inventories of work in progress and finished goods | 5,646 | 7,586 |
Cost for services | (29,281) | (27,898) |
Personnel costs | (23,429) | (24,261) |
Amortization /depreciation/write off tangible and intagible assets | (4,745) | (5,573) |
Provision and write downs | 76 | (311) |
Other operating costs | (830) | (1,219) |
EBIT | 9,567 | 12,753 |
Financial income / (charges) | (487) | (808) |
RESULT BEFORE TAX | 9,080 | 11,945 |
Income taxes | (3,855) | (4,823) |
NET RESULT FOR THE PERIOD | 5,225 | 7,122 |
Net result attributable to non-controlling interests | 10 | 13 |
Net result attributable to shareholders of the Parent Company | 5,215 | 7,109 |
- basic EPS for the period attributable to shareholders of the parent company | 0.1973 | 0.2690 |
- diluted EPS for the period attributable to shareholders of the parent company | 0.1973 | 0.2690 |