SFC Energy (F3C) Q1 2026 earnings summary

Executive summary

• Signed a major contract in Kyiv to supply resilient, decentralized power solutions to Ukraine, with shipments starting immediately and completion targeted within 2026; this is the largest order in company history and is fully financed by the German Ministry of Defense.

• Q1 2026 saw subdued revenue but improved profitability, with a strategic focus on defense, public security, and critical infrastructure, and ongoing expansion in Asia-Pacific through a 15% stake in Oneberry Technologies.

• The agreement includes both defense and civilian applications, enhancing safety and operational duration for end users.

• Strategic focus on building sustainable, repeatable business in defense, with ongoing discussions for future orders and localization in Ukraine.

Financial highlights

• Q1 2026 revenue was €34.1 million, down 11.7% year-over-year, mainly due to capacity reallocation for the Ukraine contract and currency impacts; group gross margin decreased to 42.7% from 44.3% in Q1 2025.

• Adjusted EBITDA was €6.2 million, flat year-over-year, with an improved margin of 18% due to lower operating expenses; EBIT margin increased to 12.3%.

• Net cash position at quarter-end was €42.3 million, with a cash balance of €45.4 million, down from year-end.

• Operating cash flow before working capital changes was €5.5 million, 22% lower year-over-year.

Outlook and guidance

• Revenue guidance for 2026 raised to €163–175 million, reflecting the Ukraine contract and additional business headroom.

• EBITDA guidance increased to €29–34 million, and EBIT guidance to €20.5–25.5 million, both significantly above previous ranges.

• Guidance incorporates supply chain risks, project execution uncertainties, and assumes no significant escalation in geopolitical risks.

• Expectation of continued strong demand from Ukraine and a rebound in Indian defense business in H2 2026.