Seco S.p.a. MIL:IOT

Seco S p A : Nine-month financial report as of September 30, 2025

Published November 12, 2025 at 11:52 a.m. UTC

Source: MarketScreener

Quarterly Financial Report at September 30, 2025

Contents

CORPORATE BOARDS
3
THE GROUP AND ITS OPERATIONS
4
CONSOLIDATED BALANCE SHEET AND CONSOLIDATED INCOME STATEMENT AT SEPTEMBER 30, 2025
8

Consolidated Balance Sheet 8
Consolidated Income Statement 9
Consolidated Comprehensive Income Statement 10
Consolidated Cash Flow Statement 11
Consolidated Statement of Changes in Equity 12
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13
9M 2025 OPERATING PERFORMANCE
15

Sales revenues by region 15
Alternative operating performance measures 16
Alternative financial performance measures 17
SUBSEQUENT EVENTS
18
OUTLOOK
18

‌CORPORATE BOARDS
Board of Directors
Office held until the approval of the 2026 annual accounts
Chairperson Daniele Conti
Chief Executive Officer Massimo Mauri
Directors Michele Secciani
Claudio Catania Luciano Lomarini Kurt Tosja Zywietz
Valentina Montanari Anna Zattoni
Valentina Beatrice Manfredi Paolo Lavatelli
Board of Statutory Auditors
Office held until the approval of the 2026 annual accounts
Statutory Auditors Cesare Beolchi (Chairperson) Pierpaolo Guzzo
Micaela Badiali
Alternate Auditors Prospero Accogli Edda Delon
Executive Officer for
Financial Reporting Lorenzo Mazzini
Independent Audit Firm Deloitte & Touche S.p.A.
Office held until the approval of the 2029 annual accounts
‌THE GROUP AND ITS OPERATIONS
The SECO Group (hereinafter also referred to as the "Group" or "SECO") consists of the parent company SECO S.p.A., hereinafter also referred to as the "Company" or "Parent Company", and its subsidiaries, as presented below:

The Company's registered office is located in Arezzo (AR), via Achille Grandi 20.
SECO is a high-tech Group that develops and delivers cutting-edge solutions for the digitization of industrial products and processes. SECO's hardware and software offerings enable B2B enterprises to introduce edge computing, Internet of Things, data analytics and artificial intelligence into their businesses. Within a quickly and broadly evolving marketplace, SECO's technologies encompass many fields of application, with innovative and customized solutions provided to its more than 450 customers, in sectors such as the Medical, Industrial Automation, Fitness, Vending and Transportation areas, in addition to many others.
Economic overview
Global monetary policy in 9M 2025 was more expansionary than in the previous year, with the main central banks cutting rates to stimulate a general economic recovery. Normalizing inflation, particularly in Europe, has enabled Europe's central banks to gradually ease their restrictive monetary policies, spurring a return of investment and particularly benefitting the industrial component.
The global economic environment in the period was in addition impacted by the geopolitical and the global trade tensions, particularly in terms of possible short to medium-term effects. Tensions within the business and geopolitical environment however have eased over recent months, resulting in a reduced impact from the restrictive trade measures on the demand for edge computing solutions.
On the currency market, the U.S Dollar began to weaken from the second quarter of 2025. This did not translate into reduced demand for edge computing solutions on the U.S. market, which, on the contrary, contributed significantly to the Group's growth during the period. The weakening of the Dollar however negatively impacted the revenues recognized, reducing the value of income and revenues reported in the financial statements of the companies exposed to the U.S. currency.
The electronic components market is generally stabilizing, with prices generally declining for passive components such as resistors and capacitors. Certain segments however, such as microcontrollers and components, remain subject to volatility and possible increases. Demand remains high in sectors such as automotive, AI and IoT, while geopolitical tensions and commodity fluctuations are impacting supply. Delivery timings have settled at the improved levels emerging over recent quarters, although are still variable for certain critical components.
Within this environment, the Edge Computing segment continues to constitute a key element for technological innovation: the digitalization of devices and processes in fact may significantly contribute to boosting productivity and industrial efficiency, which are essential elements not only for companies' competitiveness, but also their very survival.
Business process digital transformation is enabled by adopting smart solutions that integrate hardware and software components, facilitating the establishment of new business models and the creation of further development opportunities. The increasingly widespread adoption of digital technologies is extending also to traditionally more analogue segments: many companies are investing to improve the user experience and functionality of their products, adapting them to an increasingly interconnected and cutting-edge environment.
Against this backdrop, the main sector growth trends center on factors such as: the development of increasingly innovative technologies for Edge computing and embedded AI, linked to the integration of energy-efficient microcontrollers capable of supporting AI features, the growing interest in hardware and firmware security, against increasing cyber threats, through the development guidelines for embedded cybersecurity technologies, the expansion of IoT technologies, through the spread of realtime operative open source systems and the direct connection of intelligent devices in the industrial area. The integration of IoT-data analytics and artificial intelligence solutions within edge computing devices is also likely to accelerate the launch of new high value-added services and an evolution in the way that businesses deal with the creation, delivery and use of ICT products and services.
In addition, digitization can play a key role within a landscape in which climate change and raw material and energy supply issues make it increasingly necessary to adopt solutions that can accelerate the energy transition. In particular, by enabling the local execution of increasingly complex computational models, tools can be developed through Edge AI that can increasingly monitor and optimize the power consumption of industrial and home-use devices.
Group market overview
In terms of market dynamics, the growth emerging in Q4 2024 of edge computing and IoT solutions among operators within the various verticals in which the Group operates gradually expanded in the period. This reflects gradually normalizing inflation, particularly in Europe, which has enabled the central banks to adopt a moderately expansive monetary policy, benefitting (although not immediately) enterprise investment appetite, the related rebuilding of stocks and therefore the demand for Seco's products.
The development of new Edge computing products and new features of the Clea software suite continued. Clea represents a further development of SECO's strategy to leverage over 40 years of Edge computing know-how, with the goal of increasing value for customers, through the offer of end-to-end, integrated, customizable solutions based on micro-computing, human-machine interfaces and software platforms.
Also through long-term partnerships with the major silicon vendors, SECO has always committed to innovating its hardware proposal (e.g. with the launch of new dedicated Edge AI and Computer vision products), while continuing to work closely with its customers, supporting them through the digital evolution of their devices.
Globally, as a result of growing demand from OEMs and developers, the adoption of smart and connected edge computing solutions has accelerated in high-potential sectors such as medicine, e-mobility, smart retail and energy infrastructure, with the integration of distributed computing capabilities, secure connectivity and artificial intelligence at the edge level supporting significant boosts in operational efficiency and real-time analytics capabilities.
Against this backdrop, Group sales generally recovered during the period, driven particularly by the U.S. and APAC areas. The EMEA market however continues to be impacted by the weakness of the German economy.
Research and Development and Technological Innovation
SECO's main objective is to anticipate the needs of its customers, utilizing frontier technologies and supporting them in the digital transition of their business, while adding value to their solutions. SECO continues with its ongoing investment to ensure high levels of innovation, integration and added value in the solutions built according to the specific needs of customers operating in multiple verticals.
The constant push for innovation by all the players in a given sector can quickly render a competitive advantage obsolete. As such, SECO continues to dedicate significant resources to Research and Development, which concerned the development of new products and of off-the-shelf solutions to be sold on the market, in addition to the co-development and co-engineering of customized products, working hand-in-hand with the customer.
The SECO Group R&D departments are responsible for developing and designing technological solutions based on integrated systems, standard and custom solution modules and IoT and AI software solutions for SECO's customers and target markets. Research and development is a key aspect of SECO's business model and is carried out both in-house and through partnerships with world-class technology enterprises and research institutes and university hubs worldwide.
The technological development in which SECO has invested in recent years has positioned the Group as a leading player in the combined provision of both hardware and software. The technological challenge that the Group continues to take on is that of developing high-performance hardware, with a particular emphasis on strengthening edge computing capacity by creating new products able to run inference models locally, taking advantage of edge processing capacity directly and creating an optimal integration of hardware and the CLEA software platform.
Our strong partnerships with the primary technology leaders in the electronics industry enable the Group to implement our technology strategy on hardware products by gaining early access to some of the most cutting-edge technologies being developed.
Product research and development, central and strategic to the Group's business model, focuses on making the adoption of advanced technology more accessible, safe and sustainable for all industrial ecosystem players. We highlight in this regard the release of the new version of the Clea OS v2.0 embedded operating system, which is set to become the standard platform for all SECO products. It introduces advanced security features, remote updates and AI support, while also simplifying compliance with the relative new regulations.
SECO on the stock exchange
SECO S.p.A. shares are traded on the Milan Euronext Star market organized and managed by Borsa Italiana S.p.A. At September 30, 2025, the SECO S.p.A. (IOT:MI) stock price was Euro 3.13, with a capitalization therefore of Euro 415.6 million.

‌CONSOLIDATED BALANCE SHEET AND CONSOLIDATED INCOME STATEMENT AT SEPTEMBER 30, 2025

‌CONSOLIDATED BALANCE SHEET

(Euro thousands)	Note	30/09/2025	31/12/2024
Property, plants and equipments	1	19,393	17,271
Intangible assets	2	101,809	102,392
Right-of-Use	3	9,243	9,833
Goodwill	4	157,108	157,108
Non-current financial assets	5	11,245	10,839
Deferred tax assets	6	2,705	3,051
Other non-current assets	7	1,765	1,525
Total non-current assets		303,268	302,020
Inventories	8	70,192	72,647
Trade receivables	9	43,453	31,886
Tax receivables	10	7,268	6,974
Other receivables	11	6,851	4,816
Cash and cash equivalents	12	59,300	72,586
Total current assets		187,064	188,908
TOTAL ASSETS		490,332	490,928
Share capital		1,296	1,296
Share premium reserve		232,036	232,036
Reserves		41,109	59,609
Group Net Profit		1,882	(21,034)
Total Group Equity		276,323	271,907
Minority Equity and Reserves		18,270	16,453
Minorities profit for the period		2,755	3,371
Minorities Equity		21,025	19,824
Total Equity	13	297,347	291,731
Employee benefits	14	3,657	3,728
Provisions for risks	15	1,101	1,279
Deferred tax liabilities	16	22,690	23,717
Non-current financial payables	17	92,022	97,734
Non-current lease liabilities	18	6,563	6,752
Other non-current payables	19	8	8
Total non-current liabilities		126,041	133,218
Current financial liabilities	20	6,814	8,023
Current part of N-C Financial Liabilities	21	12,428	10,212
Current lease liabilities	22	2,015	2,358
Trade payables	23	32,853	31,713
Other current payables	24	10,252	10,845
Current tax liabilities	25	2,581	2,827
Total current liabilities		66,944	65,978
TOTAL EQUITY AND LIABILITIES		490,332	490,928

‌CONSOLIDATED INCOME STATEMENT

(In Euro thousands)	Note	9M 2025	9M 2024
Net sales		146,429	139,392
Other revenues and income		1,982	2,289
Total revenues and operating income	(6)	148,411	141,681
Costs for services, goods and other operating costs		(89,828)	(97,604)
Personnel costs		(32,197)	(31,390)
Total costs and other operating charges	(7)	(122,025)	(128,994)
Amortization and depreciation	(8)	(16,586)	(16,120)
Provisions and write-downs		(15)	(118)
Operating Profit/(loss)		9,785	(3,551)
Financial income and charges		(2,543)	(1,650)
Exchange gains/(losses)		(947)	(131)
Profit/(loss) before tax		6,294	(5,331)
Income taxes		(1,658)	(2,230)
Net profit/(loss) for the period		4,637	(7,562)
Non-controlling interests profit		2,755	2,510
Group profit/(loss)		1,882	(10,072)
Basic earnings per share		0.01	0.00
Diluted earnings per share		0.01	0.00

‌CONSOLIDATED COMPREHENSIVE INCOME STATEMENT

(In Euro thousands)	9M 2025	9M 2024
Net profit/(loss) for the period	4,637	(7,562)
Other comprehensive income/(expense) which may be subsequently reclassified to the income statement:	(3,378)	163
Translation differences	(2,294)	(88)
Gain/(loss) on Cash Flow Hedge	(1,085)	252
Other comprehensive income/(expense) which may not be subsequently reclassified to the income statement:	0	0
Discounting employee benefits	0	0
Tax effect discounting employee benefits	0	0
Total comprehensive income/(expense)	(3,378)	163
Non-controlling interests	1,204	2,464
Parent company shareholders	55	(9,862)
Total comprehensive income/(expense)	1,259	(7,398)

‌CONSOLIDATED CASH FLOW STATEMENT

(In Euro thousands)	30/09/2025	30/09/2024
Net profit/(loss) for the period	4,637	(7,562)
Income taxes	1,658	2,230
Amortization and depreciation	16,586	16,120
Change in employee benefits	(71)	342
Financial income/(charges)	2,543	1,650
Exchange gains/(losses)	947	131
Costs for share-based payments	4,295	3,753
Other non-monetary revenues and income	124	0
Cash flow before working capital changes	30,719	16,664
Change in trade receivables	(14,098)	6,987
Change in inventories	2,455	5,702
Change in trade payables	2,309	(4,700)
Other changes in tax receivables and payables	(69)	2,729
Other changes in current receivables and payables	(2,575)	(2,611)
Other changes in non-current receivables and payables	(578)	(1,603)
Use of provisions for risks, receivables and inventories	(177)	34
Interest collected	1,885	3,470
Interest paid	(3,391)	(4,849)
Exchange gains/(losses) realized	(1,558)	(97)
Income taxes paid	(2,129)	(4,525)
Cash flow from operating activities (A)	12,793	17,201
(Investments) /Disposals of property, plant and equipment	(5,528)	(4,790)
(Investments) /Disposals of intangible assets	(10,307)	(11,750)
(Investments) /Disposals of financial assets	141	(28)
Acquisition of business units net of cash and cash equivalents	0	0
Acquisition of subsidiaries net of cash and cash equivalents	0	0
Cash flow from investing activities (B)	(15,694)	(16,568)
New loan drawdowns	0	2,000
(Repayment) of bank loans	(3,497)	(8,218)
Change in current financial liabilities	(2,300)	3,326
Repayment lease liabilities	(2,233)	(1,520)
Dividends paid	(61)	(2,859)
Paid-in capital increase	0	(1)
Acquisition of treasury shares	0	0
Acquisition of shares from minorities	0	0
Cash flows from financing activities (C)	(8,091)	(7,270)
Increase (decrease) in cash and cash equivalents (A+B+C)	(10,992)	(6,637)
Cash & cash equivalents at beginning of the period	72,586	74,816
Conversion differences	(2,294)	(188)
Cash & cash equivalents at end of the period	59,300	67,991

‌CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(In Euro thousands)	01/01/2025	Share capital increase	Allocation result	Dividends paid	Other movements	Discounting SO plan	Comp. Profit/(Loss)	30/09/2025
Share capital	1,297	0	0	0	0	0	0	1,297
Legal reserve	289	0	0	0	0	0	0	289
Share premium reserve	232,035	0	0	0	0	0	0	232,035
Other reserves	59,119	0	(21,034)	0	66	4,295	(1,085)	41,361
Translation reserve	382	0	0	0	0	0	(742)	(360)
FTA Reserve	(371)	0	0	0	0	0	0	(371)
Discounting employee benefits	189	0	0	0	0	0	0	189
Group Net Profit	(21,034)	0	21,034	0	0	0	1,882	1,882
Group Equity	271,908	0	0	0	66	4,295	55	276,322
Minority Equity and Reserves	16,452	0	3,371	0	(3)	0	(1,551)	18,269
Discounting of employee benefits (non-cont. interests)	0	0	0	0	0	0	0	0
Non-controlling interests profit	3,372	0	(3,371)	0	0	0	2,755	2,756
Minorities Equity	19,824	0	0	0	(3)	0	1,204	21,025
Total Equity	291,732	0	0	0	63	4,295	1,259	297,347

‌NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Total non-current assets
  Non-current assets increased from Euro 302,020 thousand at December 31, 2024 to Euro 303,268 thousand at period-end, increasing Euro 1,248 thousand. The significant transactions contributing to the movement in the period regard: the increase in the stake in Laserwall S.r.l. by Euro 2,000 thousand, approved on February 26, 2025 by SECO S.p.A.. Following this subscription, SECO S.p.A. holds 17.04% of the share capital of Laserwall S.r.l.; the increase in Property, plants and equipments of Euro 2,122 thousand, net of the depreciation of assets recognized in previous years, mainly concerning the investment in the new industrial plant located in Monte San Savino (AR), net of the depreciation of assets recognized in previous years.
2. Total current assets
  Total current assets decreased from Euro 188,908 thousand at December 31, 2024 to Euro 187,064 thousand at September 30, 2025, a reduction of Euro 1,844 thousand. This movement mainly followed:
  - Increase in Trade Receivables of Euro 11,567 thousand, due mainly to the increased revenues on the same period of the previous year;
  - Decrease in cash and cash equivalents for Euro 13,285 thousand. For further details, reference should be made to the cash flow statement.
3. Total Group Equity
  Group Equity of Euro 276,323 thousand at September 30, 2025 increased by Euro 4,416 thousand as a combined effect of: the decrease in Reserves for Euro 18,500 thousand, mainly due to the allocation to the prior year loss reserve, and the Group net result, which was a profit of Euro 1,822 thousand in 9M 2025, against a loss of Euro 21,034 thousand in 2024.
4. Total non-current liabilities
  Total Non-current liabilities decreased from Euro 133,218 thousand at December 31, 2024 to Euro 128,106 thousand at September 30, 2025, a reduction of Euro 5,112 thousand. This decrease is mainly due to the decrease of Non-current financial liabilities of Euro 3,647 thousand, mainly due to the repayment of loan instalments in the period;
5. Total current liabilities
  Total Current liabilities decreased from Euro 65,978 thousand at December 31, 2024 to Euro 64,879 thousand at September 30, 2025, a decrease of Euro 1,099 thousand - mainly due to:
  - Decrease in Current financial liabilities of Euro 1,209 thousand. The account includes credit lines, current account overdrafts, credit card payables, payables for advances on invoices and short-term loans falling due within one year for operational purposes existing at September 30, 2025;
  - Increase in Trade Payables of Euro 1,140 thousand, as a result of the increase in business volumes and thus the greater procurement volumes of electronic components.
  - Decrease in Tax payables of Euro 246 thousand;
  - Decrease in Other Current Payables of Euro 593 thousand;
  - Decrease in Lease liabilities of Euro 343 thousand.
6. Revenues and operating income
  Net sales rose from Euro 139,392 thousand in 2024 to Euro 146,429 thousand in 2025, increasing 5.05% on the same period of the previous year. Reference should be made to the "Sales revenues by region" paragraph for further details.
  Other revenues and income totaled Euro 1,982 thousand in 9M 2025, mainly concerning the recognition of income for:
  - The operating grant tax credit for the purchase by SECO S.p.A. of capital goods under "Industry 4.0" amounting to Euro 356 thousand;
  - Operating grant tax credit for research and development amounting to Euro 577 thousand of the Italian companies Seco S.p.A., PSM Tech S.r.l. and Seco Mind S.r.l.;
  - Pro-rata contribution relating to the participation of the Group companies in the PNRR (National Recovery and Resilience Plan) tender for Euro 337 thousand.
7. Costs and other operating charges
  Costs for services, goods and other operating costs totaled Euro 89,828 thousand, compared to Euro 97,604 thousand in the same period of the previous year, a decrease of Euro 7,776 thousand. This decrease is the result of the combined effect of:
  - the increase in the cost of raw materials, ancillaries, consumable and goods, net of the change in inventories, of Euro 947 thousand, on the basis of the increase in revenues and the different product mix compared to the same period of the previous year;
  - the decrease in Service costs of Euro 4,251 thousand on the same period of the previous year, mainly due to the reduction of consultancy costs, of transport costs and of outsourcing costs due to the production process streamlining actions at the Group companies;
  - the decrease in other operating charges of Euro 4,472 thousand compared to the same period of the previous year, which was impacted by the assessment arising from tax audit by the Tax Agency on the tax periods from 2015 to 2022, which overall concerned direct and indirect taxes and tax credits.
    Personnel costs rose Euro 807 thousand on the same period of the previous year. The movement in the period mainly concerns the expansion of the Group workforce in view of the hires necessary to execute the Group strategic development plans, in addition to the recognition of the cost of the stock option plans allocated to the management team and to the employees of the Group companies.
8. Amortization and depreciation
  Amortization and depreciation in the period of Euro 16,586 thousand rose Euro 466 thousand on the same period of the previous year, due to new capitalizations which are accrued period-by-period.

‌9M 2025 OPERATING PERFORMANCE

The 9M 2025 results consolidate the signs of gradual recovery emerging in Q4 2024 in demand for edge computing and IoT solutions among the players operating in the various verticals in which the Group operates. The Group's revenues have benefitted from this recovery thanks mainly to the maintenance of close relationships with customers and its consolidated technology leadership strategy, with varying impacts among the regions in which they operate. Sales revenues are up 5.05% on the same period in the previous year, driven mainly by the USA, APAC and the Rest of the World.

The result for the period benefits from the growth in revenues, combined with the focus on operating cost optimization. Costs for services, goods and other operating costs reduced on the same period in the previous year, mainly due to the reduction in consulting costs, transport costs and outsourcing costs stemming from the efficiency of Group company industrial production processes.

The Group retains its strategic positioning, so as to maintain its sector leadership in terms of both technology and the marketplace, mainly through strengthening the workforce and investing in technological development.

‌SALES REVENUES BY REGION

As required by IFRS 8, information on the geographical distribution of revenues is provided below. Specifically, four regions have been identified: EMEA, USA, APAC and ROW. The breakdown of revenues by region is provided below:

	9M 2025	9M 2024	Changes	%
EMEA	109,597	115,845	(6,248)	-5.39%
of which Italy	55,872	46,639	9,233	19.80%
USA	23,530	13,095	10,435	79.69%
APAC	11,054	8,639	2,415	27.95%
Rest of the world	2,248	1,813	435	23.98%
Revenues by region	146,429	139,392	7,037	5.05%

Sales revenue increased from Euro 139,392 thousand in 9M 2024 to Euro 146,429 thousand in 9M 2025, up 5.05% on the same period of the previous year.

The sales in the period consolidate the gradual recovery in demand compared to the final two quarters of the previous year.

The movement on the same period of the previous year is due to a differing growth mix in the various regions in which the Group operates. In particular: in the USA revenues increased from Euro 13,095 thousand in 9M 2024 to Euro 23,530 thousand in 9M 2025, with the increase stemming from higher sales volumes to existing Group customers operating in the Medical and Industrial Automation sectors. In the APAC area, revenues rose from Euro 8,639 thousand in 9M 2024 to Euro 11,054 thousand in 9M 2025 as a result of better performances, particularly related to Industrial Automation and Transport sector customers. In the Rest of the World, 9M 2025 revenues amount to Euro 2,248 thousand, increasing on the previous year as a result in particular of the orders from Latin-American customers. Revenues in EMEA in 9M 2025 totaled Euro 109,597 thousand, compared to Euro 115,845 thousand in the same period of the previous year, despite the contraction due to the decrease in volumes to customers, particularly within the Vending Segment. Growth was reported in Italy as a result of increased sales volumes to existing customers within the Fitness and Industrial Automation sectors.

‌ALTERNATIVE OPERATING PERFORMANCE MEASURES

EBITDA - This measure is used by the Group as a financial target and is useful for assessing operating performance. EBITDA is calculated as profit or loss for the year before income taxes, financial income and charges, and amortization and depreciation.

(in Euro thousands)	9M 2025	9M 2024	Change	Change %
Total revenues and operating income	148,411	141,681	6,730	4.75%
Costs for services, goods, other operating costs & exchange gains or losses	(90,790)	(97,853)	7,063	-7.22%
Personnel costs	(32,197)	(31,390)	(807)	2.57%
EBITDA	25,424	12,438	12,986	104.41%

(*) Costs for services, goods and other operating costs include the following income statement items: costs of raw, ancillary, consumable materials and goods; changes to inventory; service costs; the doubtful debt provision and provisions for risks; other operating costs; exchange gains and losses.

The increase between the two periods (Euro 12,986 thousand, +104.41%) is due to an increase in operating revenues and income (Euro 6,730), the reduced Costs for services, goods, other operating costs and exchange gains or losses (Euro 7,063 thousand) and higher personnel costs (Euro -807 thousand).

Adjusted EBITDA - Adjusted EBITDA is a measure to assess the Group's operating performance. It is calculated as the profit before income taxes, financial charges and income, amortization and depreciation, exchange gains or losses, extraordinary and/or non-recurring revenue items.

The Group considers that the extraordinary and/or non-recurring items subject to adjustment have been identified in a manner that presents the Group's true operating performance.

(in Euro thousands)	9M 2025	9M 2024	Change	Change %
EBITDA	25,424	12,438	12,986	104.41%
Exchange gains/(losses)	947	131	816	622.90%
Income/charges from non-core business activities	4,436	7,867	(3,431)	-43.61%
Non-recurring income/charges from core business activities	8	0	8	0.00%
Adjusted EBITDA	30,815	20,436	10,379	50.79%

The Group reports 9M 2025 Adjusted EBITDA of Euro 30,815 thousand, increasing 50.79% on the same period of the previous year.

Income/charges from non-core business activities of Euro 4,436 thousand mainly refer to the allocation of stock options to managers and Directors of Euro 4,293 thousand (Euro 3,748 thousand in 9M 2024).

Non-recurring income/charges from core business activities amount to Euro 8 thousand.

‌ALTERNATIVE FINANCIAL PERFORMANCE MEASURES

Net financial debt - This measure indicates the Group's financial debt, net of cash and cash equivalents.

The breakdown of the net financial debt at September 30, 2025 compared with December 31, 2024 is presented below, determined in accordance with "Reminder No. 5/21" dated April 29, 2021 issued by Consob, which refers to ESMA Guideline 32038201138 dated March 4, 2021.

At September 30, 2025, the Group net financial debt was Euro 60,542 thousand, compared to Euro 52,494 thousand at December 31, 2024.

(in Euro thousands)	30/09/2025	31/12/2024	Change	Change %
A. Cash	16	14	2	14.85%
B. Cash equivalents	59,284	72,571	(13,288)	-18.31%
C. Other current financial assets	0	-	0	0.00%
D. Cash and cash equivalents (A) + (B) + (C)	59,300	72,586	(13,285)	-18.30%
E. Current financial debt	(8,829)	(10,381)	1,552	-14.95%
F. Current portion of the non-current debt	(10,363)	(10,212)	(151)	1.47%
G. Current financial debt (E)+(F)	(19,192)	(20,593)	1,401	-6.80%
H. Net current financial debt (G) + (D)	40,108	51,992	(11,884)	-22.86%
I. Non-current financial debt	(100,650)	(104,486)	3,837	-3.67%
J. Debt instruments	0	-	0	0.00%
K. Trade payables and other non-current payables	0	-	0	0.00%
L. Non-current financial debt (I) + (J) + (K)	(100,650)	(104,486)	3,837	-3.67%
M. Total financial debt (H) + (L)	(60,542)	(52,494)	(8,048)	15%

The overall net financial debt increased Euro 8,048 thousand, mainly due to the reduction in cash equivalents.

Adjusted Net financial debt - The Adjusted net financial debt indicates the Group's capacity to meet its financial obligations.

The Adjusted net financial debt is obtained by adjusting the Net financial debt calculated according to the "Reminder No. 5/21" dated April 29, 2021 issued by Consob, which refers to ESMA Guideline 32038201138 dated March 4, 2021, with the VAT receivable, the current and non-current financial receivables deriving from leases and recognized under IFRS 16 and the effect of the recognition of the MTM of the derivatives where liabilities.

The Adjusted net financial debt was Euro 51,162 thousand at September 30, 2025, compared to Euro 41,309 thousand at December 31, 2024. The increase is mainly due to the effects already analyzed in the previous section. The Adjustments include: i) the lower VAT credit at September 30, 2025 compared to the previous year; ii) the lower current and non-current lease liabilities at September 30, 2025 compared to the previous year.

(in Euro thousands)	30/09/2025	31/12/2024	Change	Change %
Net financial debt	(60,542)	(52,494)	(8,048)	15.33%
(+) VAT receivables	801	2,075	(1,273)	-61.38%

(-) Current lease liabilities	(2,015)	(2,358)	343	-14.53%
(-) Non-current lease liabilities	(6,563)	(6,752)	190	-2.81%
(-) Derivative financial instruments	0	-	0	0.00%
Adjusted net financial debt	(51,162)	(41,309)	(9,853)	23.85%

‌SUBSEQUENT EVENTS
No significant events occurred after the end of the reporting period.
‌OUTLOOK

SECO is continuing to acquire new design wins and customers, strengthening the foundation for our future development.

The gradual normalization of inflation, particularly in Europe, which has enabled central banks here to gradually loosen monetary policy over the second half of 2024 is beginning to have an impact on the investment appetite of businesses. Within this landscape, we are seeing a gradual rebuilding of inventories and a consequent recovery in the demand for hardware. As of the date of this report, the general market environment, that of the various geographies and of the Group target segments are likely to support business growth over the coming months.

The market is at the beginning of a digital revolution, where digitization and the use of Artificial Intelligence algorithms "at the Edge" assume a key role for the future technological development of enterprises. The growing demand for smart solutions increasingly concerns the introduction of Artificial Intelligence, directly on the device locally, to enable the launch of new high value-added services, leveraging field data and introducing new business models. SECO's unique, comprehensive and integrated technology proposition focused on Edge computing and IoT-data analytics, is designed to meet these needs and enable customers to tap into the digitization opportunities emerging across all sectors. In this context, SECO has evolved its offerings over time, building the value proposition to meet the evolving needs of customers within the increasingly broad range of verticals served. Al, the competitive positioning of the Company has also gradually shifted, as it positions itself today as a Solution company focused on generating value for the customer through integrated hardware, HMI and software-AI solutions.

In this volatile general economic environment, SECO will continue to work as always in meeting commitments and targets, maintaining a consistent focus on the efficient management of its financial structure to respond in an agile and prompt manner to the challenges and market uncertainties.

The Executive Officer for Financial Reporting, Lorenzo Mazzini, declares in accordance with Article 154 bis, paragraph 2, of the Consolidated Finance Act, that the accounting information contained in this document corresponds to the underlying accounting documents, records and accounting entries.

Arezzo, November 7, 2025 For the Board of Directors The Chief Executive Officer

Massimo Mauri

SECO S.p.A.

Registered office in Arezzo, via A. Grandi 20 Share capital Euro 1,296,944.48

VAT No. 00325250512

Arezzo Companies' Registration No. 4196