Sit S.p.a.MIL: SIT

2025 1° quarter / 3M Press release

· Issued by Sit S.p.a.
SIT back to growth: revenues exceed Euro 70 million in Q1 2025

Strong Increase in Sales for the Heating&Ventilation Division

The Group's adjusted EBITDA increase from 3.8 million to 7.4 million (+94.7% compared to Q1 2024)

Highlights

In the first quarter of 2025, SIT returned:
  • Consolidated Revenues of Euro 70.1 million (+1.5% on 2024);
  • Heating&Ventilation Division Sales of Euro 50.1 million (+4.7% on 2024 first quarter);
  • Metering Division Sales of Euro 18.4 million (-10.8% compared to the same period in 2024), of which Smart Gas Metering Sales of Euro 11.3 million (-15.4%) and Water Metering Sales of Euro 7.1 million (-2.4%);
  • Consolidated adjusted EBITDA of Euro 7.4 million, representing 10.6% of total revenues (+94.7% on first quarter of 2024);
  • Consolidated adjusted Net Result of Euro -1.5 million with a 57.3% improvement;
  • Operating Cash Flow for Q1 2025 positive of Euro 2.0 million after investments of Euro 2.4 million;
  • Net financial position of Euro 147.2 million, compared to Euro 161.1 million as of March 31, 2024.
*** Padua, May 9, 2025 - The Board of Directors of SIT S.p.A., listed on the Euronext Milan segment of the Italian Stock Exchange, in a meeting today presided over by Federico de' Stefani, the Chairperson and Chief Executive Officer of SIT, approved the consolidated results for the first quarter of 2025.

Federico de' Stefani, Chairperson and Chief Executive Officer of SIT, stated: "The results for the first quarter of 2025 confirm our expectations and, in line with what was communicated during the approval of the 2024 financial statements, the structural effects of the measures we have implemented are starting to materialize: revenues and Adjusted EBITDA are growing, driven by the performance of the Heating&Ventilation Division, which recorded significant sales increases in both Italy and the Americas (up +15.7% and +31.4%, respectively, compared to the first three months of 2024). The order backlog, both for the Heating&Ventilation Division and the Metering Division, encourages us to pursue the Group's 2025 targets".

KEY FINANCIALS

(Euro,000)

Q1 2025

%

Q1 2024

%

change %

Revenues from contracts with customers

70,054

100.0%

69,045

100.0%

1.5%

EBITDA

5,577

8.0%

6,352

9.2%

-12.2%

Adjusted EBITDA

7,434

10.6%

3,819

5.5%

94.7%

EBIT

(814)

-1.2%

(493)

-0.7%

-65.1%

Adjusted EBIT

1,043

1.5%

(3,025)

-4.4%

134.5%

Net result

(2,879)

-4.1%

(1,846)

-2.7%

-56.0%

Adjusted net result

(1,540)

-2.2%

(3,607)

-5.2%

57.3%

Cash flow from operating activities after

investing activities

1,994

(7,567)

(Euro,000)

31/03/2025

31/12/2024

31/03/2024

Net financial debt

147,225

145,850

161,058

Net financial debt /Adjusted EBITDA (last 12 months

) 4.7x

5.3x

6.6x

Net trade working capital

66.951

65,605

86.461

Net trade working capital/Revenues

23.6%

21.9%

31.2%

Sales Performance

Consolidated Revenues by Division

(Euro,000)

Q1 25

%

Q1 24

%

change

change %

Heating&Ventilation

50,115

71.5%

47,877

69.3%

2,238

4.7%

Metering

18,428

26.3%

20,662

29.9%

(2,233)

(10.8%)

Total sales

68,543

97.8%

68,539

99.3%

4

0.0%

Other revenues

1,511

2.2%

506

0.7%

1,005

198.6%

Total sales

70,054

100%

69,045

100%

1,009

1.5%

Consolidated Revenues by Geographic Area

(Euro,000)

Q1 25

%

Q1 24

%

change

change %

Italy

21,963

31.4%

23,275

33.7%

(1,312)

(5.6%)

Europe (excluding Italy)

28,607

40.8%

29,888

43.3%

(1,282)

(4.3%)

The Americas

13,957

19.9%

10,218

14.8%

3,739

36.6%

Asia/Pacific

5,528

7.9%

5,664

8.2%

(136)

(2.4%)

Total sales

70,054

100%

69,045

100%

1,009

1.5%

Consolidated revenues for the first quarter of 2025 amounted to Euro 70.1 million, representing an increase of 1.5% compared to the first quarter of 2024 (Euro 69.0 million).

Heating&Ventilation Division

Sales for the Heating&Ventilation Division in the first quarter of 2025 reached Euro 50.1 million, up 4.7% compared to Euro 47.9 million in the same period of 2024 (exchange rate impact not material).

The following table shows the characteristic sales by geographical area of the Heating&Ventilation Division based on management criteria:

(Euro,000)

Q1 25

%

Q1 24

%

change

chenge %

Italy

10,636

21.2%

9,191

19.2%

1,444

15.7%

Europe (excluding Italy)

21,162

42.2%

22,869

47.8%

(1,707)

(7.5%)

America

12,860

25.7%

9,788

20.4%

3,072

31.4%

Asia/Pacific

5,457

10.9%

6,028

12.6%

(571)

(9.5%)

Total sales

50,115

100%

47,877

100%

2,238

4.7%

At the geographical level, in the first quarter, Italy recorded a 15.7% increase compared to the same period in 2024, confirming the positive trend observed over the last quarters of the previous year, mainly driven by ventilation products.

As for Europe, excluding Italy, the first quarter registered a 7.5% decline in sales compared to the same period in the previous year. Despite the overall decrease, the quarter's performance is considered positive, as the decline was concentrated in specific areas such as Turkey (-31.4% compared to the first quarter of 2024), which was impacted by local conditions and the presence of certain OEMs operating in the Central Heating sector. Other markets, such as Central Europe, reported 10.7% growth, driven by the Electronics segment, while the UK recorded revenues in line with those registered in the first quarter of 2024.

The Americas experienced strong growth in the first quarter, up +31.4% compared to the same period in the previous year, driven by solid performances in the fireplace and Central Heating segments, with no significant exchange rate impact.

The Asia-Pacific area recorded a 9.5% decline in the first quarter of 2025 compared to the same period in 2024. This decrease is mainly due to the performance of the Chinese market, only partially offset by the solid results from the Australian market.

Metering Division

Sales in the Metering Division amounted to Euro 18.4 million in the first quarter of 2025, reflecting a 10.8% decline compared to the same period in 2024.

Sales in the Smart Gas Metering sector totalled Euro 11.3 million, down from Euro 13.4 million in the first quarter of 2024. This temporary decline is primarily due to order fulfilment delays, which are expected to be recovered during the second quarter. Over 90% of the sales in this segment were generated in Italy, with the UK sales forecast concentrated in the second half of the year.

Sales in the Water Metering segment reached Euro 7.1 million, a 2.4% decrease compared to the same period in 2024. Sales were generated in Spain for 24.2%, in Portugal for 17.9%, in the rest of Europe for 40.3% and for 14.8% and 2.8% in America and Asia respectively.

Operating performance

Consolidated revenues for the first quarter of 2025 amounted to Euro 70.1 million, reflecting a 1.5% increase compared to Euro 69.0 million in the same period in 2024.

The adjusted EBITDA reached Euro 7.4 million, marking a 94.7% increase from Euro 3.8 million in the first quarter of 2024 was affected by the effect of higher volumes in the Heating&Ventilation division and the consolidation of efficiency measures implemented in 2024.

The purchase cost of raw materials and consumables, including inventory variations, amounted to Euro 33.5 million, representing 47.8% of revenues, compared to 50.5% in the first quarter of 2024.

Service costs amounted to Euro 11.8 million, up from Euro 11.0 million in the first quarter of 2024, accounting for 16.8% and 16.0% of revenues, respectively. Personnel costs stood at Euro 18.6 million, down from Euro 19.1 million in the same period in 2024, representing 26.6% of revenues compared to 27.6% in 2024. Excluding one-time reorganization expenses, personnel costs were Euro 17.0 million, or 24.3% of revenues. Depreciation and amortization costs amounted to Euro 6.4 million, slightly lower than the Euro 7.0 million reported in the first quarter of 2024.

The operating result (EBIT) amounted to Euro -0.8 million, compared to a loss of Euro 0.5 million in the first quarter of 2024.

The adjusted operating result (EBIT adjusted) for the first quarter of 2025 stood at Euro 1.0 million.

Net financial charges for the first quarter of 2025 were Euro 1.4 million, down from Euro 1.8 million in the same period in 2024. Taxes for the period amounted to Euro 0.8 million, compared to a deferred tax provision of Euro 0.2 million in the first quarter of 2024.

The net result for the period registered a loss of Euro 2.9 million, compared to a loss of Euro 1.8 million in the same period in 2024.

The adjusted net result for the period was a loss of Euro 1.5 million, compared to a loss of Euro 3.6 million in the same period in 2024.

Cash flow performance

As of March 31, 2025, the net financial debt amounted to Euro 147.2 million, compared to Euro 145.9 million as December 31, 2024 and Euro 161.1 million as March 31, 2024. The evolution of the net financial position is shown in the table below:

(Euro,000)

Q1 2025

Q1 2024

Cash flow from current activities (A)

6,022

4,028

Change in inventories

(5,452)

(6,983)

Change in trade receivables

3,001

435

Change in trade payables

2,108

541

Change in other current assets and liabilities and for taxes

(1,241)

(1,149)

Cash flow from changes in Working Capital (B)

(1,584)

(7,156)

CASH FLOW FROM OPERATING ACTIVITIES (A + B)

4,438

(3,128)

Cash flow from investing activities (C)

(2,444)

(4,439)

OPERATING CASH FLOW AFTER INVESTING ACTIVITIES (A + B + C)

1,994

(7,567)

Changes for interest

(1,692)

(2,305)

Changes MTM derivatives and amortised cost

76

487

Changes in translation reserves and other assets

(288)

(185)

Changes to financial assets

(1,120)

2,272

IFRS 16

(345)

(70)

Change in Net Financial Position

(1,375)

(7,368)

Opening Net Financial Position

145,850

153,690

Closing Net Financial Position

147,225

161,058

Financial flows in the first quarter of 2025 highlight a cash generation from current activities of Euro

6.0 million, compared to Euro 4.0 million in the same period of 2024. The difference is due to the economic performance over the two periods.

In the first quarter of 2025, the absorption of working capital amounted to Euro 1.6 million, compared to Euro 7.2 million absorbed in the same period of the previous year.

At the level of commercial working capital trends, there has been an increase in inventories of Euro

5.5 million, in line with the seasonality of the Heating&Ventilation business and the level of the order backlog in the Smart Gas Metering sector. Trade receivables and payables recorded a variation during the quarter that substantially offsets the cash absorption of the inventory since the beginning of the year.

Cash flow from investing activities amounted to Euro 2.4 million, compared to Euro 4.4 million in the first quarter of 2024.

As a result, operating cash flow after investing activities was positive at Euro 2.0 million, compared to a cash absorption of Euro 7.6 million in the first quarter of the previous year.

Among the financing activities, the first quarter of 2025 includes interest expenses of Euro 1.7 million and changes in financial receivables for an additional Euro 1.1 million.

Significant events after the reporting period

No significant events have occurred after the end of the quarter.

Outlook

The forecasts communicated on April 17, 2025, during the presentation of the 2024 draft financial statements have been confirmed. Accordingly, consolidated revenues for 2025 are expected to grow in the high single-digit range, mainly driven by market share expansion. This growth is anticipated to materialize in the second half of the year, based on existing client agreements.

The product range diversification launched in 2024 within the Heating&Ventilation segment is also expected to gradually support revenues growth.

In addition, positive carry-over effects from the newly implemented industrial footprint and further initiatives starting in 2025 will contribute to enhancing cost efficiency throughout the year.

The adjusted EBITDA margin is expected to return to double digits and will support a further reduction in net financial debt.

The current outlook does not consider recent developments concerning duties and tariffs, or any future adjustments thereto.

***

Declaration of the manager responsible of the preparation of the Company's accounts

The manager responsible of the preparation of the Company's accounts, Mr. Paul Fogolin, hereby certifies - pursuant to paragraph 2 of Article 154-bis of the "Testo Unico della Finanza" - that the accounting information contained in this press release are fairly representing the accounts and the books of the Company. This press release and the related results presentation for the period are made available on the website https://www.sitcorporate.it in the "Investor Relations" section and in the storage system https://www.emarketstorage.it.

Today at 3:00 PM CEST, SIT's management will hold a conference call to present the Group's

consolidated results for the period to the financial community and the press. Participation in the call is available at the following link: https://shorturl.at/xEmeo

Supporting documentation will be published in the "Investor Relations" section of the Company's website (https://www.sitcorporate.it) prior to the start of the conference call, as well as on the authorized centralized storage mechanism "eMarket Storage".

***

SIT, through its Business Units Heating&Ventilation, Smart Gas Metering, and Water Metering, creates intelligent solutions for environmental condition control and consumption measurement for a more sustainable world. A multinational leader in its reference markets and listed on the Euronext Milan segment, SIT aims to be the leading sustainable partner for energy and climate control solutions serving client companies, paying great attention to experimentation and the use of alternative gasses with low environmental impact. The group has production sites in Italy, Mexico, Romania, China, Tunisia, and Portugal, and has a commercial structure covering all global reference markets. SIT adheres to the United Nations Global Compact and its related principles that promote a responsible way of doing business and has obtained the Gold sustainability rating by EcoVadis. SIT is also a member of the European Heating Industry and the European Clean Hydrogen Alliance, as well as the Water Value Community for Italy - https://www.sitcorporate.it/en

Contacts

SIT Investor Relations

Investor Relations Advisors

TWIN

SIT Media Relations

Paul Fogolin - CFO

+39 049 829 3111

Mara Di Giorgio

+39 335 7737417

Andrea Schiavon

+39 338 3018790

paul.fogolin@sitgroup.it

sit-group@twin.services

andrea.schiavon@sitgroup.it

Annex 1 BALANCE SHEET

(Euro.000)

31/03/2025

31/12/2024

Goodwill

63.278

63.278

Other intangible assets

45.655

46.978

Property, plants and equipment

91.910

95.229

Investments

1.081

1.081

Non-current financial assets

3.391

2.573

Deferred tax assets

12.076

12.665

Non-current assets

217.391

221.804

Inventories

77.491

72.263

Trade receivables

57.221

60.274

Other current assets

10.917

10.517

Tax receivables

1.666

2.372

Other current assets

3.965

5.505

Cash and Cash Equivalents

11.932

14.038

Current assets

163.194

164.971

Total assets

380.585

386.775

Share capital

96.162

96.162

Total Reserves

4.348

35.972

Net Profit

(3.849)

(31.573)

Minority interests net equity

970

862

Shareholders' Equity

97.631

101.422

Medium/long-term loans and borrowings

76.521

76.610

Other non-current financial liabilities and derivative financial instruments

55.002

54.560

Provisions for risks and charges

10.074

9.337

Post-employment benefit provision

4.403

4.504

Other non-current liabilities

3.898

3.825

Deferred tax liabilities

10.465

10.629

Non-current liabilities

160.363

159.465

Short-term bank loans

17.747

19.356

Other current financial liabilities and derivative financial instruments

13.854

14.868

Trade payables

67.761

66.933

Other current liabilities

21.877

22.957

Tax payables

1.352

1.774

Current liabilities

122.590

125.887

Total Liabilities

282.954

285.353

Total Shareholders' Equity and Liabilities

380.585

386.775

Annex 2 INCOME STATEMENT

(Euro.000)

Q1 2025

Q1 2024

Revenues from sales and services

70.054

69.045

Raw materials, ancillaries, consumables and goods

39.130

41.924

Change in inventories

(5.671)

(7.030)

Services

11.793

11.033

Personnel expense

18.631

19.068

Depreciation, amortisation and write-downs

6.394

7.021

Provisions

246

159

Other charges (income)

344

(2.637)

EBIT

(814)

(493)

Investment income/(charges)

-

-

Gains/(Losses) from valuations of minority option liabilities

-

-

Financial income

113

128

Financial charges

(1.548)

(1.885)

Net exchange gains (losses)

156

199

Impairments on financial assets

-

-

Profit before taxes

(2.092)

(2.051)

Income taxes

(787)

206

Net profit for the year

(2.879)

(1.846)

Minority interest result

109

-

Group net profit

(2.987)

(1.846)

Annex 3 CASH FLOW STATEMENT

(Euro.000)

2025/03

2024/03

Net profit

(2.879)

(1.846)

Amortisation & depreciation

6.391

6.845

Non-cash adjustments

290

(2.520)

Income taxes

786

(208)

Net financial charges/(income)

1.434

1.757

CASH FLOW FROM CURRENT ACTIVITIES (A)

6.022

4.028

Changes in assets and liabilities:

Inventories

(5.452)

(6.983)

Trade receivables

3.001

435

Trade payables

2.108

541

Other assets and liabilities

(762)

(1.087)

Income taxes paid

(479)

(62)

CASH FLOW GENERATED (ABSORBED) FROM CHANGES IN WORKING CAPITAL (B)

(1.584)

(7.156)

CASH FLOW FROM OPERATING ACTIVITIES (A + B)

4.438

(3.128)

CASH FLOW FROM INVESTING ACTIVITIES (C)

(2.444)

(4.439)

CASH FLOW FROM OPERATING & INVESTING ACTIVITIES (A + B + C)

1.994

(7.567)

Financing activities:

Interest paid

(387)

(682)

Repayment of non-current financial payables

(645)

(2.289)

Increase (decrease) current financial payables

(2.911)

7.750

Increase (decrease) other financial payables

(795)

(753)

New loans

926

1.297

CASH FLOW FROM FINANCING ACTIVITIES (D)

(3.812)

5.323

Change in translation reserve

(288)

(185)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (A + B + C + D)

(2.106)

(2.429)

Cash & cash equivalents at beginning of the year

14.038

8.700

Increase (decrease) in cash and cash equivalents

(2.106)

(2.429)

Cash & cash equivalents at end of the year

11.932

6.271

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