SIT (SIT) H1 2026 earnings summary

Executive summary

• H1 2026 consolidated revenues were €150.8 million, down 1.9% year-over-year, with both Heating & Ventilation and Metering divisions declining 1.6% each; performance was impacted by temporary factors such as customer delivery timing and currency effects.

• EBITDA improved by 1.6% to €17.1 million (11.4% of revenues), and EBIT rose 42.3% to €5.4 million, reflecting better operating performance and reduced restructuring costs.

• Net income turned positive at €0.8 million versus a €0.7 million loss in H1 2025, supported by improved margins, strong cash flow, and working capital management.

• Net financial debt declined sharply to €125.8 million, improving by €13.5 million from year-end 2025 and €25 million from June 2025, aided by strong cash flow from operations.

• New €100 million financing closed in August, refinancing existing facilities and supporting business plan acceleration.

Financial highlights

• H1 2026 revenues: €150.8 million (-1.9% YoY); EBITDA: €17.1 million (11.4% margin, +1.6% YoY); EBIT: €5.4 million (+42.3% YoY); Net income: €0.8 million (vs. -€0.7 million YoY).

• Cash flow from operations surged to €15.9 million from €1.3 million in H1 2025.

• Net debt at period end: €125.8 million, down from €150.8 million YoY and €139.3 million at FY25.

• Net Debt/EBITDA Adj improved to 3.2x from 4.2x YoY.

Outlook and guidance

• Full-year 2026 sales expected to grow low single digit; H2 sales projected to rise mid-single digit YoY, driven by Heating & Ventilation and stable Metering.

• Profitability anticipated to benefit from operating leverage, margin expansion, and cost control; further reduction in net financial position targeted by year-end, with net debt forecasted around €130 million.

• Metering division expected to continue Q2 trends for the rest of the year; recovery anticipated in Italy and Europe in Q3, with good visibility for North America in H2.

• Outlook does not factor in potential long-term impacts from the USA-Iran war or other international tensions.

• New products and markets to be less capital-intensive, supporting future margin improvement.