SFC Energy (F3C) Q2 2025 earnings summary

Executive summary

• Sales grew 3.9% year-over-year to EUR 73.6 million, with gross profit up 5.8% to EUR 31.3 million and gross margin at 42.5%.

• Adjusted EBITDA fell 32% to EUR 8.5 million, and adjusted EBIT dropped 51.5% to EUR 4.6 million, reflecting higher costs and currency headwinds.

• Guidance for 2025 was revised downward due to exchange rate impacts, delayed Indian defense contracts, and increased IT/digitalization costs.

• Core industrial and power businesses in Europe and North America showed robust growth, with industrial fuel cell business growing above 20% and power business up 9% year-over-year.

• Growth strategy focuses on stable organic expansion, new US production, and a solid financial base.

Financial highlights

• Group sales: EUR 73.6 million (+3.9% YoY); gross profit: EUR 31.3 million (+5.8% YoY); gross margin: 42.5%.

• Adjusted EBITDA: EUR 8.5 million (margin 11.6%); adjusted EBIT: EUR 4.6 million (margin 6.3%).

• Net income: EUR 257 thousand (-95.6% YoY); EPS: EUR 0.02 (undiluted and diluted).

• Cash and cash equivalents: EUR 50.6 million; net financial position: EUR 46.2 million.

• Net working capital ratio rose to 32% of LTM sales, driven by higher accounts receivable and inventory build-up.

Outlook and guidance

• 2025 sales forecast revised to EUR 146.5–161 million; adjusted EBITDA to EUR 13–19 million; adjusted EBIT to EUR 5–11 million.

• Q3 expected to be weak (low EUR 30 million revenue), with a strong Q4 anticipated (EUR 40+ million revenue).

• Growth expected from new US manufacturing, M&A, and product launches, despite ongoing macroeconomic uncertainties.

• Defense and public security pipeline building for 2026 revenue realization; industrial and power business expected to continue strong performance.

• M&A activity ongoing, with a high probability of closing at least one deal by year-end, focused on market access.