EL.En. (ELN) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue rose 8.8% year-over-year to EUR 140.9 million, with EBIT up 12% to EUR 17.4 million (12.4% margin), and EBITDA up 9.1% to EUR 21.7 million, driven by growth in both medical and industrial sectors.

• Strong order intake, especially in Italy for industrial and internationally for medical, supported by brand visibility and awards.

• The company remains confident in its ability to seize growth opportunities despite global uncertainties and new US import duties.

• The Chinese division, being divested, saw revenue decline to EUR 16 million and is excluded from line-by-line consolidation.

• Net financial position remained positive at EUR 107.6 million, slightly down from year-end 2024.

Financial highlights

• Gross margin increased 9% to EUR 62.95 million, with margin on sales up to 44.7% from 44.5% in Q1 2024.

• EBITDA margin stable at 15.4% year-over-year.

• Net financial charges shifted from EUR 0.42 million income to EUR 1.11 million expense year-over-year, impacted by currency fluctuations.

• Capital expenditure reached EUR 6 million, mainly for new production lines and plant expansion in laser cutting.

• Dividend of EUR 0.22 per share (over EUR 17.5 million) to be paid in May.

Outlook and guidance

• 2025 revenue and EBIT are expected to exceed 2024 levels, with guidance for EBIT now slightly improved.

• Order intake and backlog support a positive outlook, though management notes ongoing global trade and geopolitical risks, especially US import duties.

• EBIT growth is expected to be driven mainly by higher revenues, with some margin improvement from product mix.

• Cash generation is expected to remain strong, though Q2 will be impacted by dividend payments.