Pallas Air (PALLAS) H2 2025 earnings summary

Executive summary

• Revenue declined 18.1% year-over-year to €6.8 million in 2025, with continued negative profitability and significant one-time charges impacting results.

• Operating loss widened to €9.8 million from €7.9 million in 2024, with net loss at €10.7 million.

• Strategic shift announced: focus moving from respiratory mask production to data management and AI-driven service solutions; mask production to cease in H1 2026.

• Several management and board changes occurred, including CEO resignation and new CFO appointment.

Financial highlights

• EBITDA for 2025 was -€4.6 million, down from -€4.3 million in 2024.

• One-time items negatively impacted results by €5.0 million, mainly due to inventory write-downs and asset impairments related to the mask business.

• EPS improved to -€8.3 from -€10.6 year-over-year.

• Operating expenses totaled €16.7 million, with personnel costs down 17.1% and depreciation up 41.3%.

• Cash flow from operations was €2,000, a significant improvement from -€2.2 million in 2024.

Outlook and guidance

• Strategic focus for 2026 is on data management and AI, with high-tech manufacturing remaining significant.

• Targeting 20–25% annual revenue growth and €20–25 million revenue by 2028, with EBITDA margin goal of 15% and equity ratio above 35%.

• Ongoing financing negotiations are critical for liquidity and execution of the new strategy.