Seco/Warwick (SWG) Investor presentation summary

Key financial results and performance

• New orders reached 206 million PLN, maintaining a high level of intake and a stable backlog of 714 million PLN, despite currency headwinds from a stronger PLN versus USD.

• Revenue for 1Q'26 was 180.9 million PLN, down 3% year-over-year, with gross profit margin improving to 21.5% (+1.0 pp y/y).

• EBITDA increased by 8% y/y to 14.8 million PLN, with EBITDA margin rising to 8.2%.

• Net profit from continuing operations grew 11% y/y to 6.1 million PLN, with net margin at 3.5%.

• Operating cash flow was negative at -12.2 million PLN due to increased working capital tied to higher contract assets and payment schedules.

Segment and market trends

• Vacuum segment sales surged 52% y/y, driven by higher backlog consumption and favorable contract mix.

• AP & CAB segment sales dropped 49% y/y, reflecting weaker automotive demand.

• VME (melting furnaces) segment achieved record sales, up 13% y/y.

• Aftersales segment saw an 11% y/y decline due to cyclical lower demand.

• Main markets include USA, EU, and Asia, with 49% of sales in USD and 29% in EUR.

Strategic initiatives and outlook

• Continued investment in new technologies for aerospace, defense, energy, and rare earth metals processing.

• Major contracts include a strip casting system for rare earth magnets in the US and a plasma gas atomizer for advanced powder metallurgy R&D.

• Focus on cost optimization, especially in response to a strong PLN and localizing standard technologies in cost-competitive regions.

• Planned CAPEX for 2026 is approximately 30 million PLN, with a dividend recommendation of 8.7 million PLN (1.20 PLN/share).

• Strategic review scheduled for 3Q'26, with ongoing geographic diversification and a planned share buyback authorization.