ElringKlinger (ZIL2) investor relations material

Executive summary

• Shape 30 transformation strategy advanced, focusing on profitability, cash flow, and cost reduction, with the STREAMLINE program targeting at least EUR 30 million in global staff cost savings.

• Organic sales increased by 2.2% year-over-year for the first nine months, despite a declining European market.

• E-mobility hub in South Carolina operational, with China ramp-up underway and Battery Hub Americas in Easley, SC, preparing for scaling up battery technology production.

• Divestment of two entities and discontinuation of electric drive systems to reinforce profitable components, with shutdown of four locations as part of global footprint consolidation.

• Financial position remains solid with an equity ratio of 34.8% and net financial liabilities at EUR 388.8 million, reflecting investments in E-Mobility.

Financial highlights

• Q3 2025 revenue at EUR 395.5 million, down 10% year-on-year due to M&A and FX effects; organic decline of 0.6%.

• Adjusted EBITDA at EUR 41.1 million (Q3 2024: EUR 51.4 million); adjusted EBIT at EUR 21.2 million (5.4% margin).

• Net loss for Q3 was EUR -7.0 million; 9M net loss at EUR -15.7 million, a significant improvement year-over-year.

• Operating free cash flow of EUR 18 million in Q3 2025; net financial debt at EUR 389 million; net debt/EBITDA ratio of 2.2.

• Net working capital improved to EUR 347 million (16.8% of sales).

Outlook and guidance

• 2025 guidance and medium-term outlook reaffirmed, with revenue and profitability expected in line with previous outlook.

• Q4 2025 expected to be weaker; 2026 outlook suggests sideways movement globally.

• Organic sales expected at prior year levels, adjusted EBIT margin around 5%, and operating free cash flow between 1%-3% of revenue.

• Midterm target: adjusted EBIT margin of 7%-8%.

• CapEx to normalize to 2%-4% of sales from next year.