Sabaf (SAB) Q1 2026 earnings summary

Executive summary

• Q1 2026 was marked by macroeconomic uncertainty and geopolitical tensions, especially in the Middle East, North Africa, and Turkey, impacting the appliance industry.

• Revenue declined 6.2% year-over-year to €70 million, with a 3.3% drop at constant exchange rates, mainly due to postponed deliveries and currency effects.

• Normalised EBITDA fell 8.7% to €9.5 million, with margin at 13.6% of sales, down from 14% in Q1 2025, mainly due to a weaker US dollar.

• Adjusted net income was €2.6 million, down from €3.5 million in Q1 2025, a 25.7% decrease.

• Results were deemed satisfactory despite challenging market conditions.

Financial highlights

• Sales reached €70 million, a 6.2% decrease compared to Q1 2025; at constant exchange rates, the drop was 3.3%.

• Normalised EBIT decreased 14.8% to €4.5 million, margin at 6.4%.

• Net financial debt rose to €79.3 million from €75.2 million at year-end 2025.

• Free cash flow for the quarter was €0.6 million, down from €5.3 million in Q1 2025.

• Cash and cash equivalents at period end were €44 million.

Outlook and guidance

• April and May sales and order intake improved, with Q2 sales expected to surpass both Q1 2026 and Q2 2025.

• Full-year recovery to 2025 sales levels is considered achievable, supported by new projects and ramp-ups in H2, though visibility for the second half remains limited.

• Price increases are being implemented to offset rising raw material and energy costs, with most of the impact hedged for Q2 but exposure remains for H2.

• New plants in Mexico and India are ramping up and expected to contribute significantly in 2026.