Hydratec Industries (HYDRA) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was €127.5 million, down 7.3% year-over-year, but net profit rose to €10.5 million from €8.7 million due to higher margins and lower operating costs.

• Both Industrial Systems and Hightech Components segments saw revenue declines, but margin improvements and cost efficiencies supported profitability.

• The acquisition of Eqraft contributed positively to results, with a 60% stake acquired at the end of 2024.

Financial highlights

• Gross margin as a percentage of revenue increased to 58.0% from 54.4% year-over-year.

• EBIT rose to €13.0 million (10.2% margin) from €11.7 million (8.5% margin) in the prior year.

• Net income attributable to shareholders was €10.5 million, up from €8.7 million.

• Earnings per share increased to €8.06 from €6.66.

• Operating cash flow was €13.4 million, with net cash increasing to €11.2 million at period end.

Outlook and guidance

• Order book remains healthy, but management refrains from concrete guidance for 2025 due to macroeconomic volatility, supply chain uncertainties, and geopolitical tensions.