SFC Energy (F3C) investor relations material

Executive summary

• Sales grew 3.9% year-over-year to €73.6 million, with gross margin at 42.5%, despite macroeconomic headwinds and project delays in India.

• Adjusted EBITDA fell 32% to €8.5 million, and adjusted EBIT dropped 51.5% to €4.6 million, reflecting higher IT, SAP, cybersecurity costs, and FX losses.

• Guidance for 2025 was revised downward due to exchange rate impacts, delayed Indian defense contracts, and increased IT/digitalization costs.

• Growth strategy focuses on stable organic expansion, new US production ramping up in Q4, and a solid financial base to reduce tariff, currency, and supply chain risks.

• Core industrial and power businesses in Europe and North America showed solid growth, offsetting some regional and segment-specific weaknesses.

Financial highlights

• Group sales: €73.6 million (+3.9% YoY); gross profit: €31.3 million (+5.8% YoY); gross margin: 42.5%.

• Adjusted EBITDA: €8.5 million (margin 11.6%); adjusted EBIT: €4.6 million (margin 6.3%).

• Net income: €257 thousand (-95.6% YoY); EPS: €0.02 (undiluted and diluted).

• Cash and equivalents decreased to €50.6 million, mainly due to increased net working capital and higher inventories.

• Operating cash flow before working capital changes was €9 million, but negative €6.3 million after working capital effects.

Outlook and guidance

• Full-year 2025 sales forecast revised to €146.5–161 million; adjusted EBITDA to €13–19 million; adjusted EBIT to €5–11 million.

• Q3 expected to be weak, with Q4 anticipated to rebound strongly, driven by defense pipeline and continued industrial/power business growth.

• Management expects continued growth in core fuel cell business, but short-term uncertainty in public security contracts, especially in India.

• Growth expected from new US manufacturing, M&A, and product launches, despite ongoing macroeconomic uncertainties.

• Continued investment in IT and ERP, but with more controlled pace.