Danieli & C Officine Meccaniche (DAN) H1 2026 earnings summary

Executive summary

• Revenues for the six months ended 31 December 2025 were €1,686.8 million, down 16% year-over-year, but net profit attributable to the Group rose 5% to €130.9 million, driven by higher margins in Plant Making and improved results in Steel Making.

• EBITDA increased 17% to €191.2 million, with an EBITDA margin of 11.3% versus 8.2% a year earlier, as both Plant Making and Steel Making contributed positively.

• Operating income grew 21% year-over-year to €131.5 million, reflecting operational efficiency and cost control.

• The Group maintained a strong order backlog of €5,967 million, up from €5,384 million at 30 June 2025, supporting future revenue visibility.

• Net financial position remained robust at €2,340.9 million, up €369.5 million from 30 June 2025, supporting ongoing investments and liquidity needs.

Financial highlights

• Revenues: €1,686.8 million (-16% year-over-year), mainly due to several orders in early production phases.

• EBITDA: €191.2 million (+17% year-over-year), margin 11.3% (up from 8.2%).

• Operating income: €131.5 million (+21% year-over-year).

• Net profit attributable to the Group: €130.9 million (+5% year-over-year), margin 7.8% (up from 6.3%).

• Net invested capital: €613.2 million (down from €1,117.6 million a year earlier).

• Adjusted net financial position: €929.0 million (improved from €672.9 million year-over-year).

• Free cash flow: €375.6 million (vs. €24.6 million prior year).

Outlook and guidance

• Global economic growth is expected to remain stable in 2026, with India leading expansion and moderate improvement in Europe.

• Steel market outlook for 2026 is positive, with expected recovery in prices and volumes, especially in Europe due to CBAM and infrastructure investments.

• Plant Making segment expected to maintain steady performance; Steel Making segment forecast to improve in the first half of 2026 due to lower energy costs and better demand.

• The Group expects to confirm its full-year 2025/2026 forecasts, with potential for revenue and margin growth in 2026/2027 due to a strong order book.

• No uncovered risks are anticipated from operations in markets under international sanctions; compliance is closely monitored.