EL.En. (ELN) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue reached EUR 140.9 million, up 8.8% year-over-year, with EBIT at EUR 17.4 million (12.4% margin), both exceeding expectations and supported by strong order intake in Italy and international medical markets.

• Both medical (+8.2%) and industrial (+10.2%) sectors contributed to growth, with notable performances in Deka's foreign sales, Quanta System's surgical segment, and Esthelogue's Italian aesthetics.

• EBITDA grew 9.1% to EUR 21.7 million, maintaining a 15.4% margin, and gross margin improved to EUR 62.95 million (44.7% of revenue).

• Net financial position remained positive at EUR 107.6 million, slightly down from year-end 2024 due to working capital and capex.

• The company remains confident in capturing growth opportunities despite global uncertainties, including US tariffs and ongoing divestment of the Chinese division.

Financial highlights

• Medical segment revenues up 8.2% year-over-year to EUR 99.2 million; industrial segment up 10.2% to EUR 41.7 million.

• Gross margin rose 9% to EUR 62.95 million, with margin on sales improving to 44.7% from 44.5%.

• EBITDA increased 9% to EUR 21.7 million; EBIT up to EUR 17.4 million (12.4% margin vs. 12% in Q1 2024).

• Net financial position at EUR 107.6 million, down slightly from EUR 110.6 million at year-end 2024.

• Capital expenditure reached EUR 6 million, mainly for new laser cutting production facilities.

Outlook and guidance

• 2025 revenue and EBIT are expected to exceed 2024 levels, with guidance confirmed and slightly improved based on Q1 performance and order intake.

• EBIT growth is primarily driven by higher revenues and a favorable product mix, though FX headwinds and US tariffs may impact margins.

• Cash generation is expected to remain strong, though Q2 will be impacted by EUR 18 million dividend payment.