Earnings release
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PRESS RELEASE The Board of Directors approves the H1 2025 Financial Results Gross profit up more than 6% EBITDA margin above 21% of sales Strong operating cash flow generation New record order intake, double-digit growth in 9M 2025 2024 Sustainability Report approved RACING FORCE S.P.A. BOARD OF DIRECTORS APPROVED CONSOLIDATED INTERIM FINANCIAL RESULTS AS OF JUNE 30, 2025 - Revenues: €39.3 million (+4.6% vs H1 2024 at current FX, +4.8% at constant FX) - Contribution margin: €24.6 million (62.5% Gross margin) vs €23.1 million in H1 2024 - EBITDA: €8.3 million (21.1% EBITDA margin) vs €8.2 million in H1 2024 - Net income: €4.2 million (10.8% of revenues) vs €5.4 million in H1 2024 - Operating cash flow: €7.6 million (92% cash conversion) vs €7.1 million in H1 2024 - Net financial position: €3.5 million vs €0.1 million at December 2024 Ronco Scrivia (GE, Italy), September 24th, 2025 – The Board of Directors of Racing Force S.p.A. (“the Company” or “RFG”) , the parent company of Racing Force Group, which is specialized in the development, production, and marketing of safety components for motorsports worldwide, listed on the Euronext Growth market in Milan (RFG) and Paris (ALRFG), today reviewed and approved the consolidated half-yearly financial statements a s of June 30, 2025 , prepared in accordance with international accounting standards. Paolo Delprato, Chairman and CEO of Racing Force Group, commented: “The first half of 2025 confirms the Group’s outstanding solidity and ability to turn operating results into cash, with a cash conversion of 92% of EBITDA. The one -percentage-point improvement in gross margin, supported by a more favorable product mix and operational efficiencies, highlights the quality and effectiveness of our industrial model. In a global economic context still characterized by
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uncertainty, the strong double -digit growth in orders over the nine months reflects customer trust and supports a very positive outlook for the coming months . If the current sales trend is confirmed, we expect a particularly strong second half, with a better allocation of fixed costs over the full year and a further strengthening of profitability. We are well positioned to seize market opportunities and to continue creating value for all our shareholders, while the near completion of our diversification projects will represent an additional driver of future growth”. Summary of Group Results as of June 30, 2025 - Revenues amounted to €39.3 million, an increase of €1.7 million compared to the first half of 2024 (+4.6% at current FX, +4.8% at constant FX). The growth was concentrated in the EMEA region (+€1.6 million, +6.4%) and the Americas (+€0.6 million, +6.7%), while APAC recorded a decrease of €0.5 million (-11.7%), mainly due to a different purchasing schedule by a primary dealer. - Gross Profit reached €24.6 million, up +€1.5 million compared with H1 2024 (+6.4%), with an incidence on total Group revenues increasing from 61.5% to 62.5%. The improvement compared to H1 2024 was mainly due to: i) higher sales of driver ’s equipment and helmets, with a higher -than-average margin, ii) insourcing of certain production activities, iii) non - recurring inventory write-downs recorded in H1 2024. - EBITDA amounted to €8.3 million (EBITDA margin 21.1%), compared to €8.2 million in H1 2024 (EBITDA margin 21.7%). The variation in absolute value is due to the increase in revenues and the improvement in gross margin, net of higher commercial expenses (linked to higher sales) and higher structural costs (su pporting motorsport growth and diversification projects in the defense industry). - EBIT stood at €6.3 million (16.1% EBIT margin), compared to €6.5 million (17.4% EBIT margin) in H1 2024. - Net result was €4.2 million (10.8% of Revenues), compared to €5.4 million (14.4% of Revenues) in H1 2024, mainly due to the appreciation of the Euro against the US dollar and the
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Bahraini dinar, which generated unrealized FX losses on intercompany balances in the first six months of 2025 of over €0.8 million, compared with unrealized gains of €0.3 million in H1 2024. - Operating cash flow was €7.6 million, with a cash conversion of 92%, thanks to EBITDA growth and lower absorption of net working capital. Operating cash generation was used to cover the cash requirements of the operations carried out during the half year and contributed to financing investments in fixed assets for a total of €6.8 million and dividend payments to shareholders for €2.5 million. - As a result of these changes, the Net Financial Position of the Group passed from €0.1 million at year-end 2024 to €3.5 million as of June 30, 2025. % of % of Variance Revenue Revenue Revenue 39,303,281 37,581,573 1,721,708 Gross profit 24,582,427 62.5% 23,102,687 61.5% 1,479,741 EBITDA 8,274,919 21.1% 8,153,895 21.7% 121,024 Bad Debt and write offs 47,363 0.1% 37,281 0.1% 10,082 Depreciation 1,899,428 4.8% 1,575,913 4.2% 323,515 EBIT 6,328,128 16.1% 6,540,702 17.4% (212,573) Finance income/(loss) (984,911) 2.5% 47,538 0.1% (1,032,450) Taxes 1,096,341 2.8% 1,193,751 3.2% (97,409) Net result 4,246,876 10.8% 5,394,489 14.4% (1,147,613) Cash flow from operations 7,610,937 19.4% 7,096,392 18.9% 514,545 Dividends paid to Shareholders 2,458,202 6.3% 2,304,414 6.1% 153,788 2025 2024 06.30.2025 12.31.2024 Variance Debts with banks (A) - Short term 4,509,669 3,431,324 1,078,346 - Long term 5,363,369 6,817,968 (1,454,599) Cash and cash equivalents (B) 5,858,373 9,642,334 (3,783,961) Non current Financial Assets (C) 523,722 523,722 - Finance active loans (D) - Short term 20,000 20,000 - Net Financial Position: A) - B) -C) -D) 3,470,944 63,236 3,407,708
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Performance Analysis During the first months of the year, the macroeconomic scenario was characterized by persistent uncertainty, accentuated by the introduction of new tariffs by the US administration and the continuation of the conflicts in Ukraine and in the Gaza Strip. In this scenario, the Group recorded sales growth of +4.6% compared to the first half of 2024, strengthening its leadership in motorsport, thanks to the continuous pursuit of innovation combined with the breadth of its product range. During the half year, revenue growth mainly concerned the Driver’s Equipment segment under the OMP brand, supported by the strong increase in sales of suits and, starting from the second quarter, by the positive contribution of Bell helmets. This was further enhanced by the excellent performance of Racing Spirit non-technical apparel. The contribution margin increased by one percentage point, thanks to a more favorable product mix and to actions undertaken in the management of the Group’s production activities, aimed at improving efficiency. In the first half of the year the Group continued its investment program, aimed on the one hand at supporting growth in motorsport and, on the other, at developing diversification projects. As part of this strategy, the Riot helmet project for police forces allowed the Group, at the end of May 2025, to secure the first tender in which it took part, representing a true milestone in the history of the Group. General and administrative expenses recorded an increase of €1.3 million compared to the first half of 2024, mainly due to the increases resulting from the renewal of the mandatory national collective labor agreement applied in Italy and from the addition of new managerial figures and specialized technicians in the main operating sites of the Group, in support of the expected growth both in motorsport and in the defense industry. As for commercial and distribution expenses, during the half year there was an increase of €0.3 million compared to the first half of 2024, mainly due to the higher revenues achieved in the period. As a result, EBITDA for the half year amounted to €8. 3 million (EBITDA margin 21.1%), slightly up compared to €8.2 million in the first half of 2024.
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The increase in revenues and margin, net of higher structural costs, together with careful management of working capital, led to strong operating cash generation of €7.6 million, with a cash conversion of 92%, the highest ever recorded by the Group. The capital structure is such as to allow investments in the near future to further support the Group’s growth plan, both within motorsport and in diversification projects. Current trading Sales and orders in the first months of the second half of 2025 are showing double-digit growth compared to last year. Based on the results achieved so far, the outlook for the year remains positive. If sales are confirmed in line with forecasts, in the se cond part of the year fixed costs shall be spread over higher revenues compared to the previous year, generating a positive impact on percentage margins. Main Events After June 30, 2025: ⋅ on July 2, 2025, the subsidiary Racing Force International WLL contributed €255 thousand as share capital to the newly established company Zeronoise Communications Services WLL, a joint venture based in Bahrain, owned 51% by the Group and 49% by Al Kamel Sy stems S.L. The joint venture will operate globally in the supply of radio communication services for public events, particularly sporting events, with a focus, though not exclusive, on motorsport. Presentation of the results The results for the half year ended June 30, 2025 will be presented to analysts and investors on September 25, 2025 at 10:00 CET, via the Teams platform, using the following link: Microsoft Teams Join the meeting now ID meeting: 338 024 442 127 0 Passcode: Vu3rc3Hf The presentation supporting the conference call will be made available on the Company’s website www.racingforce.com in the “Investor Relations” section at the following link: https://www.racingforce.com/investors-relations/presentations/.
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*** 2024 Sustainability Report The Report, prepared following the guidelines of the Global Reporting Initiative (GRI), describes the Group’s approach to environmental and social sustainability, illustrating the main activities carried out in 2024. It is a document prepared on a voluntary basis, which demonstrates the Group’s commitment and transparency towards sustainability and social responsibility issues, and in particular towards people, partners, customers and suppliers, the community in which it operates, and the environment. From this perspective, the investment plan, now nearing completion and involving the main operating sites of the Group, is inspired by sustainability criteria, which will reduce the environmental impact of activities and, at the same time, achieve improvem ents in energy efficiency. For further details, please refer to the Report made available to the public on the Company’s website at www.racingforce.com, in the section “Sustainability – Sustainability Report 2024.” *** Further Resolutions of the Board of Directors - The Board of Directors approved the proposal, to be submitted to the Shareholders’ Meeting, to authorize, pursuant to Articles 2357 and following of the Italian Civil Code, the purchase and subsequent disposal of treasury shares, subject to the revocation of the previous authorization granted on April 29, 2024 for the part not executed. - The Board of Directors also approved the proposal, to be submitted to the Shareholders’ Meeting, to amend the duration of the current statutory audit engagement entrusted to KPMG S.p.A. from 9 to 3 years, in light of the entry into force on March 27, 2024 of Law No. 21/2024. ***
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Shareholders’ Meeting The Board of Directors resolved to convene the Shareholders’ Meeting of the Company, in ordinary session and single call, on a date to be defined, at the time and place that will be communicated in the related notice of call, which will be published in the manner and within the time limits provided by the applicable laws and regulations. The notice of call of the Shareholders’ Meeting, which will be published within the terms of law and the by-laws, will also indicate the methods of participation . *** Filing of Documentation The notice of call and the related documentation required by applicable law, including the Directors’ report on the items on the agenda of the Shareholders’ Meeting, will be made available to the public, within the terms of law, at the Company’s registered office in Via E. Bazzano 5, 16019 Ronco Scrivia (GE – Italy), as well as through publicatio n on the Company’s website www.racingforce.com, section Investor Relations, and on the authorized storage system www.emarketsdirstorage.it. This press release is available in the Investor Relations section of the website www.racingforce.com.
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Racing Force Group With main headquarters in Ronco Scrivia (Italy), Sakhir (Kingdom of Bahrain), and Mooresville (United States), Racing Force Group is the global leader in motorsport safety, innovation, and performance. Through its portfolio of brands – including OMP, Bell Racing, Zeronoise, and Racing Spirit – equips professional drivers, teams, and manufacturers, as well as passionate amateurs, with racewear, helmets, car parts, communication systems, and technical apparel. Racing Force Group is the only company in the motorsport industry to offer such a comprehensive range of products, contributing each year to numerous victories and titles in both car and kart racing. The Group has also diversified through its HPS brand, applying cutting-edge motorsport technologies to the defense sector. CONTACTS FOR RACING FORCE Barabino & Partners Racing Force Stefania Bassi E-mail: s.bassi@barabino.it mob: +39 335 6282667 Investor Relations Roberto Ferroggiaro E-mail: ir@racingforce.com Giuseppe Fresa E-mail: g.fresa@barabino.it mob: +39 348 5703197 Media Luigi Rossi Mohamed Al Bareeq Jacopo Rubino E-mail: media@racingforce.com
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APPENDIX Condensed consolidated statement of financial position 06.30.2025 12.31.2024 NON CURRENT ASSETS Property, plant and equipment 20,952,642 16,852,146 Right of use assets 2,895,653 3,455,418 Intangible assets 9,710,217 9,386,206 Goodwill 6,235,037 6,235,037 Non current financial assets 523,722 523,722 Tax receivables - non current 240,754 274,708 Deferred tax assets 429,989 511,690 Other non current assets 13,187 12,837 41,001,201 37,251,763 CURRENT ASSETS Cash and cash equivalents 5,858,373 9,642,334 Trade receivables 13,695,498 11,577,543 Inventories 25,868,406 27,378,864 Due from related parties - current 25,718 36,282 Tax receivables - current 582,339 1,038,916 Other current assets 3,954,081 3,286,955 49,984,415 52,960,894 TOTAL ASSETS 90,985,616 90,212,657
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06.30.2025 12.31.2024 EQUITY Share capital 2,738,933 2,738,933 Additional paid in capital 36,945,206 36,945,206 Legal reserve 547,787 514,984 Translation reserve (1,388,545) 614,167 Retained earning (losses) 16,175,918 12,867,852 Other reserve 931,390 928,876 Treasury shares reserve (450,256) (250,194) Share based payments reserve 405,193 405,193 Net Result 4,246,876 5,799,071 Equity attributable to owners of the parent Company 60,152,503 60,564,089 Non-controlling interests - - TOTAL EQUITY 60,152,503 60,564,089 NON CURRENT LIABILITIES Long term loans - non current 5,363,369 6,817,968 Lease liabilities - non current 2,289,114 2,847,437 Deferred Tax Liabilities 54,297 49,993 Employee benefits 1,026,992 1,119,088 Provisions 216,907 216,907 8,950,678 11,051,393 CURRENT LIABILITIES Short term Loan 1,536,919 386,478 Trade payables 13,316,987 11,891,853 Long term loans - current portion 2,972,750 3,044,846 Lease liabilities - current 782,263 816,510 Due to related parties 21,686 87,656 Tax payables - current 478,877 4,244 Other payables 2,772,953 2,365,588 21,882,435 18,597,175 TOTAL LIABILITIES AND EQUITY 90,985,616 90,212,657
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Condensed consolidated statement of profit and loss for the periods ended at June 30 2025 2024 Revenue 39,303,281 37,581,573 Cost of sales (14,720,854) (14,478,886) Gross profit 24,582,427 23,102,687 Other income 952,675 661,643 Selling and distribution expenses (5,719,209) (5,378,445) General and administrative expenses (11,390,662) (10,124,032) Other expenses (150,313) (107,958) Gross operating profit (EBITDA) 8,274,919 8,153,895 Bad Debt and write offs (47,363) (37,281) Depreciation (1,899,428) (1,575,913) Net operating profit (EBIT) 6,328,128 6,540,702 Finance income 60,237 341,079 Finance costs (1,045,149) (293,541) Net income (loss) before taxes 5,343,217 6,588,240 Taxes (1,096,341) (1,193,751) Total net income (loss) after taxes 4,246,876 5,394,489
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Consolidated statement of cash flows for the six months ended June 30 2025 2024 A. Cash flow from operating activities Net profit for the period 4,246,876 5,394,489 Income taxes 1,096,341 1,193,751 Interest expenses/(interest income) 984,911 (47,538) (Capital gains)/losses arising from disposal of assets 912 7,740 1. Profit (loss) for the period before income taxes, interests, dividends and 6,329,040 6,548,442 capital gains/losses on disposal of assets Adjustments for non-monetary items that had no impact on the net working capital Accruals for provisions 163,757 76,238 Depreciation and amortization 1,899,428 1,575,913 2. Cash flow before variances in net working capital 8,392,225 8,200,592 Variances in net working capital Decrease/(increase) in inventory 1,510,458 (143,639) Decrease/(increase) in receivables from customers (2,129,265) (1,652,784) Increase/(decrease) in payables to suppliers 1,425,133 (820,367) 3. Cash flow after variations in net working capital 9,198,551 5,583,802 Other variances in working capital (1,172,628) 1,844,462 Received/(paid) interests (194,524) (244,195) (Paid income taxes) (61,135) (5,272) (Use of accrued provisions) (159,327) (82,404) Cash flow from operating activities (A) 7,610,937 7,096,392 B. Cash flows from investing activities Tangible fixed assets: (cost of purchase) / sale price (5,260,620) (3,050,453) Intangible fixed assets: (cost of purchase) / sale price (1,585,003) (1,132,891) Financial fixed assets: (cost of purchase) / sale price - - Cash flow from investing activities (B) (6,845,623) (4,183,344) C. Cash flows from financing activities Debt Increase (decrease) in short-term bank loans 1,150,441 (1,042,316) Increase (decrease) in loans (1,526,695) 2,748,863 Increase (decrease) in leases (380,639) (376,823) Equity Share capital increase - 7,340,096 Treasury shares purchase (200,062) (34,580) (Paid dividends) (2,458,202) (2,304,414) Differences from translation and other reserves (1,134,118) 263,814 Cash flow from financing activities (C) (4,549,275) 6,594,640 Increase (decrease) in cash and cash equivalent (A ± B ± C) (3,783,961) 9,507,688 Cash and cash equivalent at the beginning of the period 9,642,334 6,106,995 Cash and cash equivalent at the end of the period 5,858,373 15,614,684