Earnings release
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1 PRESS RELEASE SIT back to growth: revenues exceed Euro 70 million in Q1 2025 Strong Increase in Sales for the Heating&Ventilation Division The Group's adjusted EBITDA increase from 3.8 million to 7.4 million (+94.7% compared to Q1 2024) Highlights In the first quarter of 2025, SIT returned: ● Consolidated Revenues of Euro 70.1 million (+1.5% on 2024); ● Heating&Ventilation Division Sales of Euro 50.1 million (+4.7% on 2024 first quarter); ● Metering Division Sales of Euro 18.4 million (-10.8% compared to the same period in 2024), of which Smart Gas Metering Sales of Euro 11.3 million (-15.4%) and Water Metering Sales of Euro 7.1 million (-2.4%); ● Consolidated adjusted EBITDA of Euro 7.4 million, representing 10.6% of total revenues (+94.7% on first quarter of 2024); ● Consolidated adjusted Net Result of Euro -1.5 million with a 57.3% improvement; ● Operating Cash Flow for Q1 2025 positive of Euro 2.0 million after investments of Euro 2.4 million; ● Net financial position of Euro 147.2 million, compared to Euro 161.1 million as of March 31, 2024. *** Padua, May 9, 2025 - The Board of Directors of SIT S.p.A., listed on the Euronext Milan segment of the Italian Stock Exchange, in a meeting today presided over by Federico de’ Stefani, the Chairperson and Chief Executive Officer of SIT, approved the consolidated results for the first quarter of 2025. Federico de’ Stefani, Chairperson and Chief Executive Officer of SIT, stated: "The results for the first quarter of 2025 confirm our expectations and, in line with what was communicated during the approval of the 2024 financial statements, the structural effects of the measures we have implemented are starting to materialize: revenues and Adjusted EBITDA are growing, driven by the performance of the Heating&Ventilation Division, which recorded significant sales increases in both Italy and the Americas (up +15.7% and +31.4%, respectively, compared to the first three months of 2024). Th e order backlog, both for the Heating&Ventilation Division and the Metering Division, encourages us to pursue the Group's 2025 targets”.
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2 PRESS RELEASE KEY FINANCIALS (Euro,000) Q1 2025 % Q1 2024 % change % Revenues from contracts with customers 70,054 100.0% 69,045 100.0% 1.5% EBITDA 5,577 8.0% 6,352 9.2% -12.2% Adjusted EBITDA 7,434 10.6% 3,819 5.5% 94.7% EBIT (814) -1.2% (493) -0.7% -65.1% Adjusted EBIT 1,043 1.5% (3,025) -4.4% 134.5% Net result (2,879) -4.1% (1,846) -2.7% -56.0% Adjusted net result (1,540) -2.2% (3,607) -5.2% 57.3% Cash flow from operating activities after investing activities 1,994 (7,567) (Euro,000) 31/03/2025 31/12/2024 31/03/2024 Net financial debt 147,225 145,850 161,058 Net financial debt /Adjusted EBITDA (last 12 months) 4.7x 5.3x 6.6x Net trade working capital 66.951 65,605 86.461 Net trade working capital/Revenues 23.6% 21.9% 31.2% Sales Performance Consolidated Revenues by Division (Euro,000) Q1 25 % Q1 24 % change change % Heating&Ventilation 50,115 71.5% 47,877 69.3% 2,238 4.7% Metering 18,428 26.3% 20,662 29.9% (2,233) (10.8%) Total sales 68,543 97.8% 68,539 99.3% 4 0.0% Other revenues 1,511 2.2% 506 0.7% 1,005 198.6% Total sales 70,054 100% 69,045 100% 1,009 1.5% Consolidated Revenues by Geographic Area (Euro,000) Q1 25 % Q1 24 % change change % Italy 21,963 31.4% 23,275 33.7% (1,312) (5.6%) Europe (excluding Italy) 28,607 40.8% 29,888 43.3% (1,282) (4.3%) The Americas 13,957 19.9% 10,218 14.8% 3,739 36.6% Asia/Pacific 5,528 7.9% 5,664 8.2% (136) (2.4%) Total sales 70,054 100% 69,045 100% 1,009 1.5% Consolidated revenues for the first quarter of 2025 amounted to E uro 70.1 million, representing an increase of 1.5% compared to the first quarter of 2024 (Euro 69.0 million). Heating&Ventilation Division Sales for the Heating&Ventilation Division in the first quarter of 2025 reached Euro 50.1 million, up 4.7% compared to Euro 47.9 million in the same period of 2024 (exchange rate impact not material).
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3 PRESS RELEASE The following table shows the characteristic sales by geographical area of the Heating&Ventilation Division based on management criteria: (Euro,000) Q1 25 % Q1 24 % change chenge % Italy 10,636 21.2% 9,191 19.2% 1,444 15.7% Europe (excluding Italy) 21,162 42.2% 22,869 47.8% (1,707) (7.5%) America 12,860 25.7% 9,788 20.4% 3,072 31.4% Asia/Pacific 5,457 10.9% 6,028 12.6% (571) (9.5%) Total sales 50,115 100% 47,877 100% 2,238 4.7% At the geographical level, in the first quarter, Italy recorded a 15.7% increase compared to the same period in 2024, confirming the positive trend observed over the last quarters of the previous year, mainly driven by ventilation products. As for Europe, excluding Italy, the first quarter registered a 7.5% decline in sales compared to the same period in the previous year. Despite the overall decrease, the quarter's performance is considered positive, as the decline was concentrated in specif ic areas such as Turkey ( -31.4% compared to the first quarter of 2024), which was impacted by local conditions and the presence of certain OEMs operating in the Central Heating sector. Other markets, such as Central Europe, reported 10.7% growth, driven by the Electronics segment, while the UK recorded revenues in line with those registered in the first quarter of 2024. The Americas experienced strong growth in the first quarter, up +31.4% compared to the same period in the previous year, driven by solid performances in the fireplace and Central Heating segments, with no significant exchange rate impact. The Asia -Pacific area recorded a 9.5% decline in the first quarter of 2025 compared to the same period in 2024. This decrease is mainly due to the performance of the Chinese market, only partially offset by the solid results from the Australian market. Metering Division Sales in the Metering Division amounted to Euro 18.4 million in the first quarter of 2025, reflecting a 10.8% decline compared to the same period in 2024. Sales in the Smart Gas Metering sector totalled Euro 11.3 million, down from Euro 13.4 million in the first quarter of 2024. This temporary decline is primarily due to order fulfilment delays, which are expected to be recovered during the second quarter. Over 90% of the sales in this segment were generated in Italy, with the UK sales forecast concentrated in the second half of the year. Sales in the Water Metering segment reached Euro 7.1 million, a 2.4% decrease compared to the same period in 2024. Sales were generated in Spain for 24.2%, in Portugal for 17.9%, in the rest of Europe for 40.3% and for 14.8% and 2.8% in America and Asia respectively.
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4 PRESS RELEASE Operating performance Consolidated revenues for the first quarter of 2025 amounted to Euro 70.1 million, reflecting a 1.5% increase compared to Euro 69.0 million in the same period in 2024. The adjusted EBITDA reached Euro 7.4 million, marking a 94.7% increase from Euro 3.8 million in the first quarter of 2024 was affected by the effect of higher volumes in the Heating&Ventilation division and the consolidation of efficiency measures implemented in 2024. The purchase cost of raw materials and consumables , including inventory variations, amounted to Euro 33.5 million, representing 47.8% of revenues, compared to 50.5% in the first quarter of 2024. Service costs amounted to Euro 11.8 million, up from Euro 11.0 million in the first quarter of 2024, accounting for 16.8% and 16.0% of revenues, respectively. Personnel costs stood at Euro 18.6 million, down from Euro 19.1 million in the same period in 2024, representing 26.6% of revenue s compared to 27.6% in 2024. Excluding one -time reorganization expenses, personnel costs were Euro 17.0 million, or 24.3% of revenues. Depreciation and amortization costs amounted to Euro 6.4 million, slightly lower than the Euro 7.0 million reported in the first quarter of 2024. The operating result (EBIT) amounted to Euro -0.8 million, compared to a loss of Euro 0.5 million in the first quarter of 2024. The adjusted operating result (EBIT adjusted) for the first quarter of 2025 stood at Euro 1.0 million. Net financial charges for the first quarter of 2025 were Euro 1.4 million, down from Euro 1.8 million in the same period in 2024. Taxes for the period amounted to Euro 0.8 million, compared to a deferred tax provision of Euro 0.2 million in the first quarter of 2024. The net result for the period registered a loss of Euro 2.9 million, compared to a loss of Euro 1.8 million in the same period in 2024. The adjusted net result for the period was a loss of Euro 1.5 million, compared to a loss of Euro 3.6 million in the same period in 2024. Cash flow performance As of March 31, 2025, the net financial debt amounted to Euro 147.2 million, compared to Euro 145.9 million as December 31, 2024 and Euro 161.1 million as March 31, 2024 . The evolution of the net financial position is shown in the table below: (Euro,000) Q1 2025 Q1 2024 Cash flow from current activities (A) 6,022 4,028 Change in inventories (5,452) (6,983) Change in trade receivables 3,001 435 Change in trade payables 2,108 541 Change in other current assets and liabilities and for taxes (1,241) (1,149) Cash flow from changes in Working Capital (B) (1,584) (7,156) CASH FLOW FROM OPERATING ACTIVITIES (A + B) 4,438 (3,128) Cash flow from investing activities (C) (2,444) (4,439) OPERATING CASH FLOW AFTER INVESTING ACTIVITIES (A + B + C) 1,994 (7,567) Changes for interest (1,692) (2,305)
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5 PRESS RELEASE Changes MTM derivatives and amortised cost 76 487 Changes in translation reserves and other assets (288) (185) Changes to financial assets (1,120) 2,272 IFRS 16 (345) (70) Change in Net Financial Position (1,375) (7,368) Opening Net Financial Position 145,850 153,690 Closing Net Financial Position 147,225 161,058 Financial flows in the first quarter of 2025 highlight a cash generation from current activities of Euro 6.0 million, compared to Euro 4.0 million in the same period of 2024 . The difference is due to the economic performance over the two periods. In the first quarter of 2025, the absorption of working capital amounted to Euro 1.6 million, compared to Euro 7.2 million absorbed in the same period of the previous year. At the level of commercial working capital trends, there has been an increase in inventories of Euro 5.5 million, in line with the seasonality of the Heating&Ventilation business and the level of the order backlog in the Smart Gas Metering sector. Trade receivables and payables recorded a variation during the quarter that substantially offsets the cash absorption of the inventory since the beginning of the year. Cash flow from investing activities amounted to Euro 2.4 million, compared to Euro 4.4 million in the first quarter of 2024. As a result, operating cash flow after investing activities was positive at Euro 2.0 million, compared to a cash absorption of Euro 7.6 million in the first quarter of the previous year. Among the financing activities, the first quarter of 2025 includes interest expenses of Euro 1.7 million and changes in financial receivables for an additional Euro 1.1 million. Significant events after the reporting period No significant events have occurred after the end of the quarter. Outlook The forecasts communicated on April 17, 2025, during the presentation of the 2024 draft financial statements have been confirmed. Accordingly, consolidated revenues for 2025 are expected to grow in the high single-digit range, mainly driven by market share expansion. This growth is anticipated to materialize in the second half of the year, based on existing client agreements. The product range diversification launched in 2024 within the Heating&Ventilation segment is also expected to gradually support revenues growth. In addition, positive carry-over effects from the newly implemented industrial footprint and further initiatives starting in 2025 will contribute to enhancing cost efficiency throughout the year. The adjusted EBITDA margin is expected to return to double digits and will support a further reduction in net financial debt.
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6 PRESS RELEASE The current outlook does not consider recent developments concerning duties and tariffs, or any future adjustments thereto. *** Declaration of the manager responsible of the preparation of the Company’s accounts The manager responsible of the preparation of the Company’s accounts, Mr. Paul Fogolin, hereby certifies — pursuant to paragraph 2 of Article 154-bis of the “Testo Unico della Finanza” — that the accounting information contained in this press release are fairly representing the accounts and the books of the Company . This press release and the related results presentation for the period are made available on the website www.sitcorporate.it in the “Investor Relations” section and in the storage system www.emarketstorage.it. Today at 3:00 PM CEST, SIT’s management will ho ld a conference call to present the Group’s consolidated results for the period to the financial community and the press. Participation in the call is available at the following link: https://shorturl.at/xEmeo Supporting documentation will be published in the “Investor Relations” section of the Company’s website (www.sitcorporate.it) prior to the start of the conference call , as well as on the authorized centralized storage mechanism “eMarket Storage”. *** SIT, through its Business Units Heating&Ventilation, Smart Gas Metering, and Water Metering, creates intelligent solutions fo r environmental condition control and consumption measurement for a more sustainable world. A multinational leader in its refer ence markets and listed on the Euronext Milan segment, SIT aims to be the leading sustainable partner for energy and climate control solutions serving client companies, paying great attention to experimentation and the use of alternative gasses with low environmental impact. The group has production sites in Italy, Mexico, Romania, China, Tunisia, and Portugal, and has a commercial structure covering a ll global reference markets. SIT adheres to the United Nations Global Compact and its related principles that p romote a responsible way of doing business and has obtained the Gold sustainability rating by EcoVadis. SIT is also a member of the European Heating Industry a nd the European Clean Hydrogen Alliance, as well as the Water Value Community for Italy - www.sitcorporate.it/en Contacts SIT Investor Relations Investor Relations Advisors TWIN SIT Media Relations Paul Fogolin – CFO +39 049 829 3111 paul.fogolin@sitgroup.it Mara Di Giorgio +39 335 7737417 sit-group@twin.services Andrea Schiavon +39 338 3018790 andrea.schiavon@sitgroup.it
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7 PRESS RELEASE Annex 1 BALANCE SHEET (Euro.000) 31/03/2025 31/12/2024 Goodwill 63.278 63.278 Other intangible assets 45.655 46.978 Property, plants and equipment 91.910 95.229 Investments 1.081 1.081 Non-current financial assets 3.391 2.573 Deferred tax assets 12.076 12.665 Non-current assets 217.391 221.804 Inventories 77.491 72.263 Trade receivables 57.221 60.274 Other current assets 10.917 10.517 Tax receivables 1.666 2.372 Other current assets 3.965 5.505 Cash and Cash Equivalents 11.932 14.038 Current assets 163.194 164.971 Total assets 380.585 386.775 Share capital 96.162 96.162 Total Reserves 4.348 35.972 Net Profit (3.849) (31.573) Minority interests net equity 970 862 Shareholders’ Equity 97.631 101.422 Medium/long-term loans and borrowings 76.521 76.610 Other non-current financial liabilities and derivative financial instruments 55.002 54.560 Provisions for risks and charges 10.074 9.337 Post-employment benefit provision 4.403 4.504 Other non-current liabilities 3.898 3.825 Deferred tax liabilities 10.465 10.629 Non-current liabilities 160.363 159.465 Short-term bank loans 17.747 19.356 Other current financial liabilities and derivative financial instruments 13.854 14.868 Trade payables 67.761 66.933 Other current liabilities 21.877 22.957 Tax payables 1.352 1.774 Current liabilities 122.590 125.887 Total Liabilities 282.954 285.353 Total Shareholders’ Equity and Liabilities 380.585 386.775
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8 PRESS RELEASE Annex 2 INCOME STATEMENT (Euro.000) Q1 2025 Q1 2024 Revenues from sales and services 70.054 69.045 Raw materials, ancillaries, consumables and goods 39.130 41.924 Change in inventories (5.671) (7.030) Services 11.793 11.033 Personnel expense 18.631 19.068 Depreciation, amortisation and write-downs 6.394 7.021 Provisions 246 159 Other charges (income) 344 (2.637) EBIT (814) (493) Investment income/(charges) - - Gains/(Losses) from valuations of minority option liabilities - - Financial income 113 128 Financial charges (1.548) (1.885) Net exchange gains (losses) 156 199 Impairments on financial assets - - Profit before taxes (2.092) (2.051) Income taxes (787) 206 Net profit for the year (2.879) (1.846) Minority interest result 109 - Group net profit (2.987) (1.846)
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9 PRESS RELEASE Annex 3 CASH FLOW STATEMENT (Euro.000) 2025/03 2024/03 Net profit (2.879) (1.846) Amortisation & depreciation 6.391 6.845 Non-cash adjustments 290 (2.520) Income taxes 786 (208) Net financial charges/(income) 1.434 1.757 CASH FLOW FROM CURRENT ACTIVITIES (A) 6.022 4.028 Changes in assets and liabilities: Inventories (5.452) (6.983) Trade receivables 3.001 435 Trade payables 2.108 541 Other assets and liabilities (762) (1.087) Income taxes paid (479) (62) CASH FLOW GENERATED (ABSORBED) FROM CHANGES IN WORKING CAPITAL (B) (1.584) (7.156) CASH FLOW FROM OPERATING ACTIVITIES (A + B) 4.438 (3.128) CASH FLOW FROM INVESTING ACTIVITIES (C) (2.444) (4.439) CASH FLOW FROM OPERATING & INVESTING ACTIVITIES (A + B + C) 1.994 (7.567) Financing activities: Interest paid (387) (682) Repayment of non-current financial payables (645) (2.289) Increase (decrease) current financial payables (2.911) 7.750 Increase (decrease) other financial payables (795) (753) New loans 926 1.297 CASH FLOW FROM FINANCING ACTIVITIES (D) (3.812) 5.323 Change in translation reserve (288) (185) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (A + B + C + D) (2.106) (2.429) Cash & cash equivalents at beginning of the year 14.038 8.700 Increase (decrease) in cash and cash equivalents (2.106) (2.429) Cash & cash equivalents at end of the year 11.932 6.271